Payroll accounting can be quite a challenge for the new business
owner. There are many federal and state laws regulating what you
have to track related to payroll. Failure to do so could result in
heavy fines-or worse.
Many small-business owners use outside payroll services. These
companies guarantee compliance with all applicable laws. This keeps
the small-business owner out of trouble with the law and saves
valuable time that can be devoted to something else in the
business.
However, if you choose to do your own payroll, it is highly
recommended that you purchase an automated payroll system. Even if
the rest of your books are done manually, an automated payroll
system will save valuable time and help considerably with
compliance. There's not a lot of margin for error when dealing
with the federal government!
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Excerpted from Start Your Own Business: The Only Start-Up
Book You'll Ever Need, by Rieva Lesonsky and the Staff of
Entrepreneur Magazine, © 1998 Entrepreneur Press