Getting started with payroll for your small business
First of all, there is a something to be mentioned before you read ahead: You rock! Yes, you have started your business and you own it. Great! And now you are ready to hire new employees to scale your startup. But do you know that delay in salary cited as the most common reason for employees to quit a startup! Yes, this is why you ought to ensure that payroll is processed on time and accurately each month to retain your employees.
You are at the right place to learn what it takes to start with payroll in any business at initial stage. This article will guide you on how to save your time and avoid any legal hassles to save your business from sinking.
1. Register for GST: Running a business may seem easy, but there are lot of struggles to get customers and tackle various other challenges pertaining to taxation and compliances. GST (Goods and Service Tax) is one such tax reform initiated by the Government of India that every business ought to abide by. If your business involves selling goods or offers services, you are liable to register for GST, these tax rates are decided by government and varies from industry to industry.
2. Employee paperwork: Another important thing is paperwork related to employees, who have joined your startup recently. They must fill the income tax form so that you can withhold proper tax from their salaries. The amount of tax to withhold depends on salary and is decided by the government.
3. Decide a pay period: You may already possess a manual process for payroll. This period could be monthly, bimonthly, weekly or twice a month depending on your requirements and sometimes decided by employment laws in specific states. You can amend this period on a payroll software according to your preferences. There can also be some factors which may affect this schedule- What is expected by your employees? When is it convenient to you? Once you evaluate these and decide the pay period, let your employees know it and accordingly make changes to the software and let the payroll software automate it for you. No more payroll redundancies and inconsistencies!
4. Carefully attend deductions and other variables: Some businesses pay their employees for overtime or pay them for the hours worked. This can be set into the software for every category or employee. And don’t forget withhold for health insurance, medical facilities and other variables to be deducted from salary.
5. Choose a payroll technique: Till now, you have learnt about the requirements of your business regarding payroll and it is time to choose the vendor. Some may opt for continuing with manual process while some may go for an automated payroll software, which lowers the chances of any errors in critical activities like payroll that you could face while performing manually. There are many vendors out there offering HRMS solutions. Choose the one that fits your goals and needs.
If you opt to automate your payroll with a cloud based HR software, then you can sit back and relax, since the system will do it for you in a seamless and streamlined manner. Most importantly, it will save a great deal of time for your HR department that can be utilized in other strategic tasks.
Pocket HRMS is one such HRMS solution that can address all your HR concerns right from hire to retire. To know more about how Pocket HRMS can help your small business start right on the right foot when it comes to human capital management, SMS SALES to 56767 or write to us at email@example.com