9Top Payroll Questions Answered

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9Top Payroll Questions Answered
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• All employers need to run payroll even smaller
  businesses but that doesnt mean that its an
  easy process, and that you might not have a whole
  bunch of questions about how it works and what
  you need to do as an employer.
• To help you meet your payroll needs as a small
  business employer, weve got answers to 9 of the
  most commonly asked questions
• 1.What is an EIN?
• An EIN is an Employer Identification Number, and
  youll be assigned one by the IRS so that you can
  identify your business on different tax documents.

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• 2.Are there any payroll terms I should know?
• Some of the most common are as follows
• Compensation wages, bonuses and small employee
  benefits
• Deduction money withheld from an employees
  wages for taxes, benefits etc.
• Gross wages an employees wages before
  deductions
• Net wages an employees wages after deductions

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• 3.Whats the best way to run payroll?
• Many smaller businesses are choosing to outsource
  their payroll requirements, as this often a more
  affordable and convenient option.
• 4.Should I pay my employees via direct deposit?
• Used by the majority of employees, direct deposit
  is a popular and convenient method, and in some
  states, employers are even allowed to implement
  mandatory direct deposit.

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• 5.What is supplemental pay?
• This is any money you give to an employee on top
  of their regular wages, and can come in the form
  of bonus payments, commissions and severance pay.
  Because this pay is not a part of an employees
  regular wages, taxes are withheld differently
  from them.
• 6.Whats the difference between an exempt and
  nonexempt employee?
• Employees that are not exempt must be paid
  overtime wages exempt employees must meet the
  following requirements

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• They must make at least 35,568 per year/684 per
  week
• They must be paid on a salary basis
• They must have job duties that are considered
  exempt (executive, administrative or
  professional)
• An employee that doesnt meet these requirements,
  is considered to be nonexempt and must be paid at
  least the minimum federal wage and overtime.
• 7.What taxes must I withhold from an employees
  paycheck?
• Federal income, Social Security and Medicare
  taxes must be withheld, and in some cases, state
  and local income taxes may need to be withheld,
  too.

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• 8.What forms should I know about?
• Below are some of the most common forms youll
  come across as an employer
• Form W-2 wage and tax statement
• Form W-3 transmittal of wage and tax statements
• Form 940 employers annual federal unemployment
• Form 941 employers quarterly federal tax return
• Form 944 employers annual federal tax return

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• 9.How long do I have to keep payroll records?
• All payroll records must be kept for at least 3
  years according to the FLSA, and records of
  employment taxes for at least 4 years after
  filing the 4th quarter, according to the IRS.
• To help simplify payroll for your small business,
  and stay on top of all your commitments as an
  employer, consider outsourcing your payroll
  requirements. They will also be able to answer
  any more questions you might have about payroll
  in general.

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• Apollo Payroll is one of the premier small
  business payroll companies in Miami Beach and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  payroll service in Miami and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Coral Gables Miami.