Payroll 101 for New Nevada Business Owners

Hiring your first employee is a huge milestone in any business journey. You’ve reached a level of growth…where your company can support another person.

And now you feel ready to take on the new responsibilities of being an employer.

The day your business stops being just you

Hooray! You’ve hired your first employee. Your business feels like it’s going in the right direction → Growth.

Whether you’re building a growing HVAC company in Reno. Maybe it’s expanding an established cleaning service now covering all of Washoe County and Lake Tahoe.

Or a recently licensed, Nevada general contractor offering your brand of custom-built homes throughout Reno-Tahoe markets…

Payroll is now part your business workload. But you got this…you’ve built a business and this is just a new element.

Even if you hire a payroll company, this article will give you a high level overview of what’s now required of you as an employer.

You’re responsible for someone else’s paycheck

Congratulations on taking this step…employing Northern Nevada people. You are now one of the few contributing to our local economy in a big way.

Remember when you were an employee looking at your pay stub? Guess what…you’re now the one responsible for what shows up on theirs.

• Employees depend on accurate and on time pay. If you can’t cover payroll, morale will suffer. And employees may look elsewhere for work.
• The paycheck isn’t entirely yours to distribute. This is important. You can’t just write a check like you’re paying a bill.
• The government expects certain taxes and contributions to be withheld and submitted.
• Paperwork…you’ll need to keep records, track hours, and maintain employee information.
• Employees must be paid based on accurate hours worked. That’s why timekeeping is just as important as writing the check.
• Missing deadlines (yes, deadlines!) can create headaches. The good news is that once you understand the process…the deadlines become routine.

Take a deep breath…it’s not a hopeless cause.

Employees Expect Consistency

When it was just you, there was nobody else depending on the business.

Now there is. Employees expect consistency.

Consistency in their schedule as well as consistency in their pay. Consistency in communication.

A late payroll might feel like a minor inconvenience to you. But your employee is in a slightly different mindset.

To an employee trying to pay rent, it feels much bigger. You both have bills to be paid.

Good payroll isn’t just about compliance. It’s about building trust. Which also builds longevity and loyalty when they can count on you.

What Payroll Includes

Payroll is a little more involved than simply writing a check. The process has a few moving parts we talk about next.

1. Getting and storing Employee information. Things like Form I-9, Form W-4, Social Security numbers, and identification like a driver’s license.
2. Simple but important. Build a system to accurately track and store employee time worked.
3. Not only the gross pay amount but the deductions that you must account for, collect, and submit on a regular basis.
4. Payment method. This one is simple, paper checks or direct deposit?
5. Money in the bank. This one takes more attention in the accounting function. Some companies set up a bank account just for all payroll obligations.

Why Accurate Payroll Is Important

We have hinted at the why’s earlier. But let’s review and add a few more considerations.

• Employee trust and morale
• Payroll deductions, collections, contributions, and payment liabilities
• Worker’s Compensation premium calculations
• Accurate business records for decision making and future growth

Conclusion

Hiring your first employee is an exciting milestone.

It means your business is growing and your hard work is paying off.

It also means you’re stepping into a new role as an employer.

The good news?

Thousands of Nevada business owners have successfully navigated payroll before you.

With a basic understanding of the process and a willingness to learn, payroll becomes another manageable part of running a successful business.

In future articles, we’ll explore payroll taxes, employee records, timekeeping, and other topics that every Nevada employer should understand.

Until next time, keep building. Keep growing. And keep moving Northern Nevada forward.

P.S. Is your company Balance Sheet troubling you? Read “Balance Sheet Red-Flags to Look for Every Month“.