Employee-Related Accounting
Adding employees to your business can be both thrilling and intimidating. The good news is that you’ve got enough demand for your company’s product or service to justify expanding the team. The bad news is that not only do you need to cover that person’s salary, benefits, and employment taxes out of the business revenue now, but you also need to handle all the related accounting decisions, forms, and filings.
In this part, we help you manage employment issues, from bigger-picture decisions down to nitty-gritty tasks. First, you learn what you need to do for an initial hire, including whether you should classify a job as an independent contractor or employee, what governmental forms to complete, and how to compensate the person (and yourself as business owner). Then we take a look at what benefits you might consider or be legally required to provide for your employees and business, plus their impact on your accounting. Various types of insurance for employees, various types of insurance for the business, and different flavors of retirement plans are included. We wrap up Part 3 by leading you through employment taxes, emphasizing the importance of meeting deadlines so you avoid penalties.