Posted on Dec 15, 2008 in Personnel No Comments »
Sure, 24 pay periods versus 26. But from an accounting point of view, simple versus cumbersome. Clean cutoff is always desired so end-of-month timing under the semi-monthly method works best, especially if a majority of your employees are salaried. Otherwise, several accrual adjustments must be made.
Posted on Dec 15, 2008 in Personnel No Comments »
Outsourcing payroll, no matter the size of the business, makes considerable sense in light of the myriad of potential penalties should errors be made. And the cost to do so is relatively cheap compared to the headaches in replying to notices from federal and state agencies. It is far easier to worry about ensuring adequate [...]
Posted on Dec 15, 2008 in Personnel No Comments »
Sure, attorneys and electricians bill out their time. All service providers do. But every business would benefit from some sort of employee reporting of how time is spent performing duties. It makes employees accountable and furnishes employers with more concrete performance evidence for periodic reviews.
Posted on Dec 15, 2008 in Personnel No Comments »
A misstep here could be very costly. While it is understandable for business owners to prefer the hire of non-employees, make certain that these individuals meet the basic requirements of such designation. And make certain these contractors complete a Form W-9, Request for Taxpayer Identification Number and Certification, for your protection.
Posted on Dec 15, 2008 in Personnel No Comments »
Don’t mess around with employee withholdings, especially retirement plan deferrals. These amounts are to be remitted to trust when readily available for transmittal, but under no circumstance can it exceed two weeks from the date originally withheld from wages. Good rule of thumb – transfer retirement plan deferrals the later of wages paid or payroll [...]
Posted on Dec 15, 2008 in Personnel No Comments »
A buffer is good. But too short and estimates will be required. Make it too long and employee complaints tend to rise. So cut off payroll time periods at least 5 days in advance of actually paying payroll. For example, cut off time through the 10th for payment on the 15th.
Posted on Dec 15, 2008 in Personnel No Comments »
So choose your desired paid time off (PTO) arrangement carefully. Plans such as “use or lose” will have a zero dollar liability at year-end as long as vacation is prorated for mid-year hires and carryover is not permitted for any circumstance. Otherwise, you must compute your liability and it may be quite shocking.
Posted on Dec 15, 2008 in Operational No Comments »
Long-lived assets are just that, acquired to last three or more years. Therefore, it generally makes sound business sense to obtain short-term bank debt financing that mirrors the intended useful life of the asset acquired rather than pay cash or use credit cards. Computer Equipment = 3 years. Office Equipment = 5 years. Furniture = [...]
Posted on Dec 15, 2008 in Operational No Comments »
An upgrade in machinery or computer systems usually arises from the obsolescence of previously used equipment. Pay careful attention to your internal fixed asset lists and make certain you still use the equipment listed. Otherwise, you’re likely paying tax or taking a depreciation deduction on assets you no longer use or even possess.
Posted on Dec 15, 2008 in Operational No Comments »
You get the question every year at tax time – what are your total meal costs? So simply allocate airfare, lodging and vehicle expenses to travel and allocate meals and diversion activities to entertainment. And treat company outings as employee relations.
Geoff Goudy: The Certified Public Accountant Colorado Businesses Trust.
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