Every Small Business Needs a Check Stub Created Using a Template

As a small business owner you may have noticed that one of the biggest problems you face is providing proof of income when applying for any kind of credit. As most small business tend to operate on the basis of cash it can be very hard to convince the loan officer of your income. If…

As a small business owner you may have noticed that one of the biggest problems you face is providing proof of income when applying for any kind of credit. As most small business tend to operate on the basis of cash it can be very hard to convince the loan officer of your income. If you were an employee with a larger company, you would have a pay stub to provide the proof of income you would need to secure the loan. Being a small business owner you can use a check stub using an easy to find template to create your own pay stubs as proof of income.

Taking Care of Business by Using a Template to Create Your Check Stub

If you, as the owner of a small business must have a way to provide proof of income, then you must also be prepared to provide each of your employees with one too. Since you have employees who earn a paycheck each week or biweekly you will need to use a template to create a check stub that will provide them with written proof of their gross pay for the pay period as required by federal law.

You are also going to find that your employees are going to want to know how much is being taken out of their pay before they get their paychecks which only show net pay. Good business sense and in most cases the law states that you need to provide all employees, both part time and full time, proof of their gross pay, any and all deductions that have been taken out and the resulting net or take home pay at the end of the period.

Creating the Perfect Pay Check Stub

While for many years check stubs were written by hand or created by an accountant, this is no longer necessary. Depending on the type of accounting software you are currently using you can find the right template to create a check stub that will work seamlessly. For example there are templates that are designed to work with Excel that can create and print a check stub for payroll or billing with a simple click of a button.

Once you click on the button the software fills in the blanks with the proper amounts including all taxes and deductions that have been taken. A net pay amount is shown at the bottom of stub for your employees or loan officer to clearly see. With a little research you will find there are several free or low cost templates available online that will do the job perfectly for you.

Blank Excel Pay Stub – Making Payday Much Simpler

The amount of financial paperwork involved in running a business seems to never end, from outgoing orders and sales slip to the awful amount of information it takes to create your employees' paychecks. If you are using Microsoft Excel to manage your finances you will find that there is an easy way to take care…

The amount of financial paperwork involved in running a business seems to never end, from outgoing orders and sales slip to the awful amount of information it takes to create your employees' paychecks. If you are using Microsoft Excel to manage your finances you will find that there is an easy way to take care of your employees' needs with a blank ready to fill in Excel pay stub. Since you are tracking their hours and pay rates using your database, there is no reason you should not put this information to good use and save yourself a lot of time.

What Is a Blank Excel Pay Stub?

Any time you have employees who receive a paycheck whether it is weekly, bi weekly or monthly, they have a legal right to know how much they have earned and what deduction have been made from their gross salary. There are many different types of pay stubs templates you can use, even if you are using Excel the best possible way to create one using the blank excel pay stub template.

This simple addition to your existing Excel software is designed to make the task of filling in the correct information as easy as click on the create pay stub button. The software will do the rest for you by extracting the information for each employee directly from your current database. Using this software is also the best way to ensure that no mistakes are made and your employees are paid properly.

What Information Can Be Entered on a Blank Excel Pay Stub?

While each template may be slightly different and can be custom tailored to your system of pay, whether you pay by the hour, the week or a monthly salary, they all should contain a certain minimum of information. In most cases the federal laws cover what needs to be on a pay stub, the basic information must include gross pay, federal income tax, state income tax, social security and Medicare deductions.

In those areas with city or local taxes, these must be shown as well along with any pretax discounts such as health insurance or 401K retirement discounts. Using an Excel pay stub that is blank allows you to create areas to list all of these discounts and end up with a net pay figure which should match how much is on the employee's paycheck. Using the right type of software and pay stub template can take the usual payday nightmare and make it into a simple push of a button affair. This means that you will have more time to concentrate on running a successful business and less paperwork hassles each pay period.

Generate a Stub Template – Keeping the Records Straight

For many years small business owners simply wrote their employees a paycheck directly out of the main company checkbook. Some companies went so far as to have a separate account that was used for payroll to help make accounting much easier at tax time. You will find that very few employees will be satisfied with…

For many years small business owners simply wrote their employees a paycheck directly out of the main company checkbook. Some companies went so far as to have a separate account that was used for payroll to help make accounting much easier at tax time. You will find that very few employees will be satisfied with this today as they want to see written proof of exactly how much they have earned and what discounts have been made. If you want to generate the right type of pay stub for your employees, you are going to need the right software.

Why Does Everyone Want a Pay Stub?

This is an excellent question and you can not help but wonder why after decades of handwritten checks do employees suddenly want you to generate a complete and accurate pay stub? In most cases the simple fact is that they want to be able to track their earnings. Most employers are very honest in the way the pay their employees, those that are not tend to end up going out of business or spending time in prison. However a payroll stub is the employee's only real way of keeping an eye on his income.

It was easy for an employee to track his money when the only debts were federal taxes and social security, today however there are so many state, city and local taxes along with personal discounts such as 401K retirement funds, medical and dental insurance and a wealth of miscellaneous discounts that employees want to know how their gross pay shrank by as much as 30% or more before they got what was left.

What Do I Need to Generate the Right Type of Pay Stub?

Now that you understand the importance of being able to provide each of your employees including yourself with a pay stub, the next question is how to create a payroll stub. You could of course write each person a pay stub by hand, but if you have more than one employee, not including yourself, this can quickly become a major hassle. You may also find that many banks and loan companies will not accept a handwritten pay slip.

Depending on the type of accounting software you are using, you will find that there are several different programs available to help you generate a clear and concise pay stub. In most cases you can find free or low cost templates on line that are more than adequate to take care of your needs. The most important thing to remember is that your template should work with the software you are using and provide the information that your employees want to see on their paystubs each pay period.

Time and Attendance Goes Mobile

Who would have thought that your cell phone would start to play a prominent role in the workplace? Well with all the new smartphone apps, it is starting to become slightly more imaginable. In fact, Econz just developed an app that will take time clock software mobile, allowing management to view time, attendance, job tasks,…

Who would have thought that your cell phone would start to play a prominent role in the workplace? Well with all the new smartphone apps, it is starting to become slightly more imaginable. In fact, Econz just developed an app that will take time clock software mobile, allowing management to view time, attendance, job tasks, cost codes, breaks and GPS tracking data of all mobile workers. The app is called Timecard and it is sure to become a breakthrough in the business world, and this is why:

All of the mobile time card software data can be easily sent to over 100 accounting and payroll packages with this new app. This makes paper time cards and tedious payroll paperwork a thing of the past. This also makes for a more environmentally conscious workplace as well by eliminating unnecessary wastes.

Also, Econz is arguing that the Timecard app will increase worker productivity with its GPS feature and the quick data transfer that can measure break time. Employees will be more likely to be on time, and stay away from any unauthorized areas knowing that their boss may be tracking them. Of course this time card software may generate privacy issues, but that will need to be disclosed by the employer and agreed upon by the employee to prevent any conflict.

Econz is also saying that their new app will reduce costs and help document federal and state wage-hour laws. Again the reduction of paper use allows for lower costs, and less employee time spent on payroll paperwork, which allows for an overall more efficiently run business. And with a close eye kept on time clock software, overtime it will be easier to monitor, especially when employees need to take their breaks.

The cost of the app is $ 12.99 a month per device, and it is available on all major networks and on most phones including Blackberrys. Whether the app is right for your business depends on how you would like your company to be run, but regardless it is impressive to see how much impact mobile devices are making on the business world.

Picking the Right Paystub Template For Your Payroll

If you have done and searched recently you will have no doubt found that there are several different samples of a payroll record keeping paystub available. The hard part is trying to decide which one is going to work for your company. In most cases once a company has selected a template they will stick…

If you have done and searched recently you will have no doubt found that there are several different samples of a payroll record keeping paystub available. The hard part is trying to decide which one is going to work for your company. In most cases once a company has selected a template they will stick with it in order to make the job of their accounting department much easier. The easier they paystubs are to read the happier your salary clerks are likely to be.

Your Employees are Counting on You

You count on your employees to work hard for you and hold up their end of bargain; at the same time they have a right to expect the same from you. This means many things, but when payday comes they not only expect to get a paycheck, they also expect to receive a legitimate payroll document or paystub. You need to make sure that every aspect of the paystub you are going to provide is concise and self explanatory.

This is because your employees are counting on you to keep them well apprised of their income every pay period. They need this information in the event that they decide to apply for a mortgage or any other form of loan. If like so many hours have to be cut, they are going to need their paystubs in order to apply for the various forms of public assistance that are available.

You Have to Count on Your Template

If you are going to be running a business you need to have a payroll template to create a paystub that you can count on. Since most companies now make use of accounting software such as Excel, the template you choose needs to be able to work with your accounting software and should do so seamlessly. This makes it much easier to transfer information regarding each employee's hours and pay directly from your accounting software to their pay stubs.

You must always be sure that your template allows you to include at least certain basic information such as the employee's gross pay, including the number of hours worked. It should also show their duties such as taxes and any union or healthcare allowances. At the bottom of the stub should be a line that shows each employee how much their net pay is.

As long as you provide each employee with their share of the payroll and an accurate paystub any disputes can easily be handled by your accounting department. You can find many perfect examples of this type of paystub template online and you may want to try several to see how they mesh with your accounting software and your needs before deciding which one you are going to use.

Pay Stub – Taking Care of Your Employees

Once you step up to the next level and open your own business you are probably going to have to hire employees to help you keep things running. This means that you are also going to have to be prepared to prepare each employee a pay slip at the end of each pay period. In…

Once you step up to the next level and open your own business you are probably going to have to hire employees to help you keep things running. This means that you are also going to have to be prepared to prepare each employee a pay slip at the end of each pay period. In order to keep your employees happy you are going to have to use a template to create their pay stub that shows them how much they earned and what discounts were taken out.

Learning About the Paystub and the Right Type of Template

Most new business owners have probably never filled out a payroll stub and as such have only a limited idea of ​​what information must be included. The best way to ensure that the stub you give to your employees is right your best bet is to use a template to create a pay stub that will work with your computer accounting software.

A template is a guide that can be used to provide you with the basic concepts of how to create a payroll stub. With most templates you will find that you can customize them to match your company's specific needs. In many cases you will find that there is specific information that your employees will ask you to include on their pay stubs, by choosing the right template you will be able to add this information to their payroll stubs quite easily.

What a Template Used to Create a Paystub Should Include

Your employees and federal laws are both going to require that you include certain information on each pay stub. This information will all be included in the average template used to create a pay stub and in many cases can be filled in automatically from your database. Each stub should have a space for the employee's name and address. There should be lines for his social security number, the hours he has worked broken down into regular hours and overtime hours.

Following this hourly rates should be listed to avoid any question of what he is getting paid. The total of all hours worked should be shown along with the gross pay. Below this should be lines for all taxes, social security and Medicare deductions as well as any others such as health insurance payments. This way your employees can understand where every dollar they have earned goes before they get the bottom figure or net pay.

If you want to keep your employees happy then you should look online for a template that will create a pay stub that you can use in conjunction with your accounting software to produce their pay slips easily every pay period. The use of a template can save you both time and aggravation every time payday comes around.

Internet Payroll Software Programs

You may have read about the three alternatives for handling company payrolls and the different payroll systems online. 1) do it all on your own manually 2) Purchase and download a payroll software product 3) use other sources and employ an external company In fact, you can do it another way that people seldom discuss.…

You may have read about the three alternatives for handling company payrolls and the different payroll systems online.

1) do it all on your own manually
2) Purchase and download a payroll software product
3) use other sources and employ an external company

In fact, you can do it another way that people seldom discuss.

You will outsource certain things but still have full control over records and information, as well as data entry and pay yourself. You handle your own payroll with payroll software provided on their website that you can access at your convenience.

It could be just the right choice for many smaller or medium-sized businesses that need to do payrolls but do not have the wherewithal to hunt and peck for the right software system and still do not want to outsource the duty to an outside person Egypt firm. The hosting website would see the maintenance and integrity of the software on their end which would save them the work of having to troubleshoot any glitches when they arise.

Such internet applications offer the same capabilities as payroll programs in disk form. that lets users put in their own information and tailor their calculations when they take discounts. Each employee records information, such as their employee number, pay rates, salary history, pension program, and other special discounts, as well as other calculations. Naturally, you can record all the usual special circumstances such as Workers Comp, maternity leave or any other type of disability leave, and adjust the computations in accordance there with.

The users of the program can schedule calculations to be done, and can even setup an automatic salary payment by bank transfer to employee's bank accounts. Those who utilize the program will have access to any government regulations affecting payroll and can create the reports they need.

There are places and ways to keep additional information, like where the employee works, if he or she's been promoted or transferred, banking data, and those to contact in case of emergency. Such software programs are able to be coordinated with the firm's internal HR mechanisms or they can function to take care of Human Resource operations in addition to those of payroll.

This hosted system may be the perfect compromise for companies not wanting to share payroll information by an outside business, yet not wanting the bother of maintaining a payroll computer program.

What Are Calculating Time Recorders?

Time recording devices have been used by companies for job costing and attendance purposes since the late 19th century. With technological advances these devices have become more feature rich and automate as much of the process as possible. This article covers the calculating category of time recorder. This type of device is able to log…

Time recording devices have been used by companies for job costing and attendance purposes since the late 19th century. With technological advances these devices have become more feature rich and automate as much of the process as possible. This article covers the calculating category of time recorder.

This type of device is able to log time information in the normal way but it can also automatically calculate the hours worked by a member of staff. This solved one of the largest problems in time recording which was the possibility of human error when totaling up the hours that staff had worked.

In addition these devices can compare the recorded times of a member of staff with standard working hours of your business and assessment whether the person using the recorder is late in or early out. The card can then be stamped with an exclamation or different color ink to draw attention to that fact when the cards are being processed.

Conversely these devices can also account for any overtime a member of staff has logged and make that information available separately from the standard work times. Calculating time recorders can also account for lunch hours and multiple shift patterns.

These devices are ideal for companies which employ up to 200 members of staff yet do not require a computerized system. They are designed to be quickly installed with the minimum of fuss on a desktop or wall and resist bumps and scratches as they will typically be used in factory or industrial environments.

What Are Fully Automatic Time Recorders?

Time recorders are devices companies use for job costing. They allow staff to punch in or out of the workplace using a time card. This means that all date and time information for each member of staff is included on a time card unique to that member of staff. The collected data can then be…

Time recorders are devices companies use for job costing. They allow staff to punch in or out of the workplace using a time card. This means that all date and time information for each member of staff is included on a time card unique to that member of staff. The collected data can then be used for payroll and attendance reports.

Modern time recorders are produced to carry out this task in various ways. One of type of recorder is the 'fully automatic' device. This type of recorder is equipped with additional features which make use much easier.

Firstly, fully automatic recorders automate the positioning and printing of the time card. Using a clocking machine which is not fully automated means that the member of staff must position the time card to allow the machine to stamp the time in the same place every time. One of the problems this causes is over stamping. With a fully automated recorder this is no longer a problem as the device evaluates the fields on the card and determinates if the member of staff is clocking in or out and the correct position to print the next time stamp.

Secondly, due to the automatic positioning of the card, there is no need for the member of staff to indicate whether they are clocking in or out. The device simply fills in the correct field with no input from the user. Fully automatic recorders will also adjust the clock for daylight saving time automatically.

Ways of Managing Staff Attendance Times in Small to Medium Businesses

Logging staff attendance is an essential part of a company's records. As members of staff begin or finish their shift, logging those times allows the human resources department to track attendance and the accounts department to pay staff based on that information. History A common solution to managing staff attendance is a clocking in machine.…

Logging staff attendance is an essential part of a company's records. As members of staff begin or finish their shift, logging those times allows the human resources department to track attendance and the accounts department to pay staff based on that information.

History

A common solution to managing staff attendance is a clocking in machine. These devices print date and time information into set areas on cards assigned to each member of staff. This gives a very accurate means of collecting time information which can then be used to analyze the working patterns of employees.
The first of these devices was designed in the late 19th century by Daniel M Cooper. Prior to this invention, all attendance information was logged manually in handwritten records. The Rochester Recorder, as it was known, set the standard for collecting staff attendance information. Each member of staff was assigned a clock card. When a member of staff entered the card into the machine and dropped a lever the device would punch holes in specific areas of the card that correspond to days of the week or hours of the day.
Competing inventors took the idea and formed businesses as time recorder manufacturers. In 1911 a group of time recorder manufacturers merged to create IBM. This cave increase to several advances including a different color of ink to signify lateness and more accurate systems which were able to log times to the minute.

Digital time recorders introduced several advantages including the removal of paper time cards from the system and replacing them with identification numbers. When a member of staff chooses to clock in or out they simply enter a number which is unique to them and the date and time are automatically added to the system. This allows reporting to be transported out more easily by integrating the time recorder with the rest of the system.

A company also has the option of using electronic swipe cards which identify members of staff but the paper time card is still commonly used in cases where integrating the time recorder system with a reporting system is not feasible.

Brands

Various brands have now made names for themselves as manufacturers of time recorders. For small to medium businesses the following companies produce ideal machines:

Seiko

This manufacturer produces compact digital and analogue machines. These systems provide an out of box solution to job costing. They are ideal for factories, garages, repair shops and service operators.

Needtek

These devices are also compact and available with digital and analogue clocks. While some devices estimate lateness with an asterisk some are able to print late times in different colors.

Amano

This is a Japanese manufacturer of time recorders. They specialize in small, cost effective devices for small businesses. Even the smallest devices are capable of logging six timestamps and feed time cards automatically. They can automatically account for daylight savings time and retain their memory in the event of a power cut using an inbuilt battery.

MAX

These time recorders have the ability to avoid over stamping and automatically calculate the time each employee was clocked in for. They can be configured to work to a weekly, biweekly or monthly pay period.

For larger companies the more sophisticated time recorders include reporting systems and offer the alternatives to clock cards. In some cases they include software to operate web services which staff can use remotely.

Umbrella Companies For Contractors

An umbrella company will send invoices on your behalf and will then make payment to you after they have received payment from your client or agency. The point of one is to act as your employer, for tax purposes, for the duration of a contract with a client or an employment agency. Sending out invoices…

An umbrella company will send invoices on your behalf and will then make payment to you after they have received payment from your client or agency. The point of one is to act as your employer, for tax purposes, for the duration of a contract with a client or an employment agency. Sending out invoices and calculating tax can take a huge amount of time. An umbrella company will deal with all that stress for you so you can concentrate on more important things.

Once a payment has been received by the umbrella company, they may either make a payment to your bank account immediately or they may send you fortnightly payments including a pay-slip with information on the total amount received and any discounts made. Be wary if an umbrella company offers a service that can reduce your income tax or national insurance contributions as this is in fact illegal. You are required to notify the company of any expenses you accrue whether they are chargeable or not and the company will take care of them for you either by refunding you or by detailing them as tax benefits.

Therefore, your taxable income will be reduced by the value of the expenses. That is not to say that expenses can be used to reduce your tax bill. Anything that you claim must be allowable by the Inland Revenue and must be a cost to you personally that is absolutely capable to the work you have done. A company should only charge you a fixed fee as if you earned $ 50 a day or $ 500, their amount of work would be the same. Do not rely on information or advice given to you by the agency you work for. These agencies are sometimes given financial incentives to recommend the services of a particular umbrella company. A simple few hours searching online will enable you to find the company that will suit your needs best.

Small Business Payroll Software Serials – Is Payroll Software For Me?

The answer is YES , if you are a small business owner, you have employees, you have payments to make, taxes to deduct from the salies and send the deducted money to the IRS. 1. Payroll Software Is Worth As small business owner, you need to take care of the payroll taxes all by yourself.…

The answer is YES , if you are a small business owner, you have employees, you have payments to make, taxes to deduct from the salies and send the deducted money to the IRS.

1. Payroll Software Is Worth

As small business owner, you need to take care of the payroll taxes all by yourself. Calculating the income tax and national insurance contributions in producing the weekly payroll can easily take an hour or more each week. An hour that could be better spend earning profits or at the very least having an extra hour of free time each week. Free time that small business owner's value at a premium since the majority of small business owners either work or think about work from dawn to dusk 7 days a week. An easy-to-use hr software package to satisfy the payroll requirements can be just one part of making that small business more efficient.

2. Payroll Application Can Be User Friendly

You do not need to be a computer whiz or financial guru to use such system. Dr Ge, the designer of business software, believed “Good small business tax software was designed and engineered for ease-of-use by those who have only basic computer skills and little accounting know-how. that small and mid-sized business owners can focus their time and energy on running their businesses, not trying to figure out how to run payroll software. ”

3. Payroll Application Is Affordable

Most business owners do not need complex accounting suite, which comes with lots features that you might not need to touch at all. You can easily find stand-alone tax software on market that cost you less than $ 100 per tax year. Some companies even offer discount price for updating package when renew it next year.

4. Start Your Test Drive

If you are still not confident enough, you can go ahead and download such software from internet. Most companies allow user to user try such software free for 15 to 30 days.

Understanding Pay Stubs

With the technology advances in electronic employee management software many companies have migrated to online pay stubs instead of mailing or handing out paper pay stubs. They may email a pay stub notification to each employee or have a secure log on set up for each employee to sign on and view their pay stub…

With the technology advances in electronic employee management software many companies have migrated to online pay stubs instead of mailing or handing out paper pay stubs. They may email a pay stub notification to each employee or have a secure log on set up for each employee to sign on and view their pay stub at their own time.

The electronic capabilities benefit companies and employees for a number of reasons. Companies save money on paper and mailing expenses, the software stream lines payroll, benefits, and compensation processes reducing chance of error, and it keeps information centralized for easy research or editing. On the other hand, it reduces the amount of mail and paperwork that employees receive, it gives them the ability to access their paycheck at any online location, and it makes researching or collecting payroll information much easier.

Since electronic employee management software has made it easier to obtain and view pay stubs, it gives us all the more reason to be sure we understand what we are looking at. Important financial, tax, and benefit information that we should pay attention to is listed.

Pay Stub layouts vary from company to company but they will all include the following …

Personal Information – This includes the company name, employee name, address, and possibly the employee social security number.

Important Dates – Dates listed will include the pay period start and end date, and the date of the check or pay stub issue. Some sections also include a Year-to-date column to show how much you were paid, how much was withheld, or how much was deducted so far that year.

Taxable Earnings – This is the amount of income that is earned for the specific pay period.

Net Pay – This is the amount of income received for “take home” after all necessary withholdings. This will match the amount of your physical pay check or direct deposit pay.

Federal Tax – This is an income tax withholding that every employee pays. The percentage withheld depends on the amount of income you make and the information you listed on your W-4.

State Tax – The state income tax withholding is not mandatory for everyone. It depends on what state you live in and their tax laws. It is also a percentage depending on what you make.

Social Security – This is the US system of supplementary retirement money. Every employee contributes the same percentage of their gross income. Employers contribute a matching percentage as well.

Medicare – This is the US government insurance plan. It provides medical benefits to the disabled and retired workers over 65 years old. All employees and employers pay a matching percentage of gross income.

Other information that could be listed on your pay stub includes …

Insurance Medical, dental, and / or life insurance deductions are listed on your pay stub. They typically show the amount that you paid and the amount that your employer paid for you.

Retirement Savings Plan – If you participate in a 401K or other form of retirement savings where the funds are deducted from your pay, this information is usually included. The percentage is of your pre-tax income.

Health Savings Account – If you participate in a medical expense account where discounts are taken from your pay, this will show on your pay stub as a pre-tax percentage.

A Glance at Payroll – Strong Business Credit

Initially, managing two or three employees may seem relatively easy. You may even be able to handle the tax aspects on your own with the right amount of research and advice. However, as your business grows, you may find it more and more difficult to manage the distribution of funds-as well as the calculations involved…

Initially, managing two or three employees may seem relatively easy. You may even be able to handle the tax aspects on your own with the right amount of research and advice. However, as your business grows, you may find it more and more difficult to manage the distribution of funds-as well as the calculations involved in taxes and other discounts-to such a degree that you may wish to invest in a new employee or even an outside service to help you manage payroll services.

Failing to properly handle the multiple of fees, taxes, withholdings and other items required can bring on various legal issues and result in fees, back-taxes and numerous other problems. Having someone on-hand who can handle all of these responsibilities appropriately will ensure that the workload is out of your hands, and that you, the government and your employees are all satisfied, with no surprise fees or fines for improper payroll handling.

The various discounts are ever changing. It is safe to assume that, in the majority of the time, the rates increase; however, the problem comes when it's time to track the increases. Historically, the United States has had a serious issue with Social Security, and thus, small business owners have to adjust their deduction models. Review the increases over the past decade and consider hiring additional help in this field.

AVOIDING VULNERABILITY

If your small business is harmed with a lawsuit, check with your insurance agent to see if the dispute or lawsuit may be covered by your business insurance policy. If the dispute or lawsuit is covered by insurance, then typically the insurance company is required to pay for the legal fees in defending the lawsuit as well as any judgment or settlement that is within the policy limits.

If your small business entailing giving your clients advice, publishing articles written by others, manufacturing products, or engages in any other kind of business that might get you entangled in a lawsuit, the business is recommended to incorporate immediately.

In the case of an adverse legal judgment against the business, your personal assets could be wiped out. If your small business currently operates as a sole proprietorship, incorporating may be a good idea. Incorporating protects small business owners from personal liability of any judgments against the business. As members of a corporation, business owners enjoy limited liability, which means that they are personally protected by small business laws from certain liabilities of the business and any adverse judgments.

Is Your Payroll Data Safe?

Payroll data needs to be secure. You do not want banking and personal information like social security numbers getting into wrong hands. Nor do you want to risk losing your data to hard-drive corruption or other data-loss events. Outsourcing your payroll can be either advantageous or dangerous when it comes to securing your payroll data.…

Payroll data needs to be secure. You do not want banking and personal information like social security numbers getting into wrong hands. Nor do you want to risk losing your data to hard-drive corruption or other data-loss events. Outsourcing your payroll can be either advantageous or dangerous when it comes to securing your payroll data.

Following are security issue you should think before you decide your payroll processing:

1. Online payroll processing service

Web-based services may or may not have adequate safeguards, security and back-up systems. Make sure you ask about security and find reviews on potential outsourcing sites before you buy. And if your own computer systems are insecure, it will not matter how secure the web-based service is because your data transmissions will be vulnerable to hackers when you send data over the web.

2. Accountants or Payroll Processing Firms If you're considering hiring an accountant or small firm, make sure you ask about their security and back-up systems.

Large firms often have secure processes, hi-security computer servers and back-up systems to keep your data safe. These firms are likely to have better data encryption and security than you'll be able to put in place yourself, so you can be sure your data is safe. Small firms and solo-accountants are not likely to have the same level of security as large firms and computer systems may be vulnerable to hackers or data losses.

3. Payroll Software Inhouse application may be an easy, safe and affordable payroll processing method for a lot of small businesses. Some payroll applications support data backup feature and do not require internet connection at all. Assuming you have adequate security measures for your computer system, including firewalls, secure data back-ups and 128-bit password encryption, using in-house software is a reasonably secure way to handle payroll. You'll know exactly who has access to your records and no data needs to be transmitted across the Internet.

Every business is unique and while payroll software is often an efficient, cost-saving payroll solution for most small and mid-size businesses, you may find that you enjoy the freedom and expertise of hiring an accountant or payroll service. Only you can decide which is right for your business.