04 May 5 Payroll Filings That Will Keep Your Business in Tax Compliance

By: Ed Lieber, Small Biz Trends

So you’ve expanded your small business, you’ve hired a few people and are generating an inkling of revenue.

You need to put a payroll system in place, whether you have one employee or 50. Amazingly, the U.S. Census Bureau reports that about three-quarters of all U.S. business firms have no payroll. And most of these are small business owners like yourself.

How you put your payroll system together encompasses more than the wages you pay your first hires. A good payroll system will protect you from the wrath of the IRS and can also save you time and money. It can be a challenge, however.

As Kevin Busch of CFOToday tells Small Business Trends: “New regulations make it more confusing each year for small business owners to file the right reports in a timely way. It’s a good idea to have a tax professional help with these important filings.”

Make sure you consider the U.S. Census Bureau recommendations as a rule of thumb and not gospel truth. For example, the Bureau advises small businesses to limit payroll expenses to between 15 percent and 30 percent of gross income (earned revenue minus cost of goods).

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