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What is Small Business Payroll and how is it different from other forms of payroll?
Home » Small Business » Small Business Payroll » What is Small Business Payroll and how is it different from other forms of payroll?Payroll is the answer to the questions of who you pay, what you pay them, and when you pay them. The phrase “on the payroll” refers to all the employees to which a company pays wages. How much should you pay these employees? What are the logistics of paying your employees? This is the realm of payroll.
Large corporations with thousands of employees have individuals (or departments) dedicated to payroll processing, but small business payroll is a different animal. Small business payroll will generally be personal—managers might deliver checks by hand, for example—and flexible—employees might have more control over their deductions or pay period. In addition, small business payroll may be more accurate than payroll at a large corporation; small businesses can plan their payroll specifically for the deductions of their state and health insurance provider, for example.
A common difficulty for small businesses, however, is that they do not have experience or expertise in the area of payroll. It is important, both for compliance with federal laws and for the well-being of your employees, that an employer understand and correctly applies payroll laws regarding minimum wage and overtime pay, as well as both federal and state tax codes.
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