There may be rare instances where your business only has either few or only one employee. You are still responsible for keeping track of the hours they work, when they get on and off of work, and making sure that they get paid the right amount. Your employee will also have to pay income tax to the government, so a payroll service will come in handy in order to calculate all of that information.
Create A Manual Payroll System
A manual payroll system is one that is written by hand or typed into a computer spreadsheet. You will have to calculate wages, tax computations, tax reporting and filings. The only issue with this method is that it opens the chances for errors to occur, but because you only are doing it for one employee you shouldn’t run into any issues. First, you will need to create an Excel spreadsheet to log your employee’s hours worked every week. To do this simply create a yearly excel and spread it within weeks, at the end of each day enter the number of hours worked and how much that pay will be. If you’re writing one by hand make sure to get a printed form or create a very organized chart of data.
Hire Payroll Services
If you’re worried about accidentally making an error, then you should consider payroll outsourcing. By hiring a professional payroll employee, you can ensure that your payroll will be precise and without any errors. Outsourcing is a great way to get your payroll done because it saves you the frustration and time of trying to figure it out yourself. Plus, if you were to have any errors on the payroll you open yourself up to the chances of a lawsuit or even illegal activity. You don’t need to have those types of worries, especially when you’re a business owner. It’s highly recommended that you hire a payroll service even if it’s just for one employee. Learn more.
Use a Payroll Software
If you really don’t want to hire a payroll service, then instead you can invest in a payroll software. This software gives you access to accounting tools you need in order to successfully keep track of payroll records. Just simply enter in all of your employee’s personal data, pay rate, pay frequency, ad tax data, and the software will automatically compute the wages and taxes to be paid. It will also calculate your employee’s paychecks, as well as allow you to register any and all information you would need to file your taxes. This is such an easy method if you can’t afford to outsource or hire a payroll service.
No matter how big or small your business is, it’s important to accurately document and calculate all payroll matters. Sometimes it may be easier to do it yourself, however, if you’re in the position where you rather have someone else do it for you, then you can always hire someone from payrollserviceaustralia.com.au.