Payroll Tips for small Businesses

One of the largest expenses that most small business owners have is payroll.

Employing a staff of loyal and well-qualified individuals can be expensive. The expense of payroll has a huge value, but can be a biweekly nightmare to afford. Here are a few tips to make payroll less of a burden.

Negotiate reasonable salaries

When you consider hiring a new employee have an honest conversation about salary expectations. It’s great to start the conversation out by asking what the potential employee expects to earn. Understanding salary expectations can help you to negotiate a fair and reasonable salary offer. Also it’s important to understand your limits regarding benefits like health insurance because employee benefits only make the payroll more expensive.

Use a business line of credit

It’s not uncommon for small businesses to experience tight cash flow in certain points of the month. Having a business line of credit can serve as a cushion to float the payroll expense in times of short cash flow. Financing your Way offers business line of credit for small businesses seeking to have a payroll cushion.

Contract when possible 

Sites like Upwork and Thumbtack are great resources to find skilled contractors to provide temporary or seasonal work. Payroll can be expensive because you have to match the tax contributions of the employee. Contractors pay their own taxes which saves you money each pay period. You should understand the laws regarding contractors versus employees as there are defined differences between the two. The most important being that contractors cannot be told when or where to work while employees can have defined schedules and set work locations.


If you are interested in a business line of credit to assist with the cost of payroll, contact Financing your Way today. 



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