CategoriesBlog Carnivals (25)
Business Law (19)
Customer Service (12)
Family Business (4)
Human Resources (27)
Recent Posts Taking Time Off
Starting a New Business
More Tips for Expo Success
Tips for Trade Show Success
Protect Your Wireless Networks
You Cant Replace Face Time
GreatFX Business Cards Small Business Buzz How and When You Should Pay Yourself
Small Business BuzzHow and When You Should Pay Yourself
A doubleshot of business news espresso with extra froth
Share Your Thoughts!
As a business owner, there are many things you have to worry about. Bills, supplies, meeting customer demand, hiring employees you can count on, choosing the right price for your product… the list goes on and on. One thing that may seem to be moved to the back burner in the midst of all of these concerns is yourself, more specifically, the personal funds you get out of the company.
So, how and when do you pay yourself for all of your hard work? Let’s first focus on the when.
However, as I said before, you become last priority sometimes when it comes to running your own business. So, there will be times when funds are a bit lower than anticipated and you may have to skip paying yourself out of the company profits so that you can be sure your employees are paid the salary they rely upon.
If it does come to that, consider your salary as a debt the company owes to you. Keeping in mind, however, that when the company does eventually make up for the skipped compensation, that you still take out the appropriate taxes.
Another answer to the how is to consider hiring a CPA (accountant) to help you keep things on track. One of the most difficult tasks of paying out salaries is keeping up with all the employer taxes and the taxes you have to withhold for your employees (including you). A CPA will help you to stay on top of the regulations and be sure that you don’t get fined for inaccuracies later.
It’s a somewhat complicated process, no matter how you look at it. Take your time, do some consulting with others who are in the same boat, and put your business first. You’ll come out on top in the long run.
Expanding Your Business Overseas: Labor Laws
IRS Redesigns Form 941
IRS Payments by Credit Card
Preventing Employee Theft
Professional Employer Organization Services
Finding a Good Accountant
Competing for Business with a Former Employer
A New Way for Employees to Get Paid
What’s Ahead for Small Business in 2007?
How to Buy Back the Business You Sold
By Michelle Cramer
Tuesday, March 5th, 2013 @ 12:01 AM CDT
Money, Ownership |