How to Pay Your Employees in a Small Business

Рет қаралды 151,719

Күн бұрын

Paying employees in any business is a difficult task.
Become a Tax Client: bit.ly/3UWy9k2
And it could be extremely stressful if you don’t know what you’re doing. Mostly because there are 3 sides of paying your employees...
1) determining how much to pay your employees
2) designing your comp plan to actually motivate them to work hard for you and retain them
3) compliance - which is making sure you’re paying your employees correctly to avoid big hefty penalties from the government
In today’s episode, I’m going to help you understand how to do this in your business, so you don’t make the same mistakes we've made.
Outline:
Intro: (0:00)
Small Business Mistakes We Made: (2:07)
Difference Between Independent Contractor and Employee: (4:20)
How to Setup a Payroll System: (8:40)
Hourly Pay vs. Salary Pay: (9:10)
When to Use Bonuses and Commissions: (10:22)
How Much to Pay Your Employees: (14:00)
Recap: (17:00)
Suggested video to watch next: How to Pay Yourself As An LLC - • How to Pay Yourself As...

Пікірлер: 142

@LYFEAccounting 8 ай бұрын

Watch Next: My Review of The Best Payroll Services for Small Business (ADP vs. Gusto vs QuickBooks Payroll) kzfaq.info/get/bejne/briJhM1iubHdgIk.html

@PaluMom 3 жыл бұрын

I spent 20 minutes looking for videos about payroll and your video was the best by far. Thank you for that information so useful.

@LYFEAccounting 3 жыл бұрын

Awesome! Thank you! Hope you consider subscribing

@x.amrusabiq6195 3 жыл бұрын

Indeed

@squiggle1020 2 жыл бұрын

This gentleman does have solid videos. And not completely mudane.

@XYRN02 2 жыл бұрын

I agree… you guys are VERY thorough. I am so happy that I had subscribed; I am unsubscribing the others. As soon as I get the last of the things I need for my business, I will contribute. With this information, I feel very confident in my startup.

@victorramirez7343 2 жыл бұрын

I agreed 100% also does your business have an Instagram ?

@CapitalWorksPro 2 жыл бұрын

Nobody on KZfaq EVER mentions that you need to consider cost of labor in your pricing, and I'm here to say I love that you did! Great job getting that out there, guys!

8 ай бұрын

I have not been able to find this Info anywhere. You are such a blessing!

@heathertoomey7068 2 жыл бұрын

I love that you always use wholesome language! Thanks for keeping it clean, pure, professional, and friendly!

@miloseveggies8064 Жыл бұрын

Do most accounting videos contain swearing?

@hernandezasia6936 3 жыл бұрын

Thank you for providing this amazing info✨🙏🏼 Everything I was hearing was what I needed to know!!

@LYFEAccounting 3 жыл бұрын

You are so welcome. I assume you own a business? What do you do?

@alisonthrives6950 3 жыл бұрын

This is exactly what I was looking for. Your video quality is so high I have to subscribe immediately

@LYFEAccounting 3 жыл бұрын

Thank you for watching and subscribing! I hope you keep leaving your feedback in the comments, it means so much to see everyone's thoughts :)

@GunninRebel55 2 жыл бұрын

So much helpful and practical information. Thank you so much for sharing the knowledge. I subscribed a few weeks ago and have been learning a lot. Thanks again!

@LYFEAccounting 2 жыл бұрын

Welcome aboard! Thanks for supporting the channel.

@cwcleaningcompany Жыл бұрын

This was such an amazing video! Thank you so much for your wealth of knowledge! 👏🏼👏🏼👏🏼

@LAREALNAE 3 жыл бұрын

Wow, great video! So needed! Thanks for this!

@LYFEAccounting 3 жыл бұрын

You're so welcome!

@shirinsaghaie5090 3 жыл бұрын

Thank you so much, this is so helpful.

@btwbrand9919 2 жыл бұрын

Great video thanks for the content brother keep pushing and spreading wisdom

@AdelitaWilliam-dl7ci 3 ай бұрын

I like your video presentation. It is informative too, at the same time. Thanks a lot for your guidance!

@ethandowie3907 Жыл бұрын

Fantastic video. Looking to bring on my first employee and this was very helpful!

@Luuvkev 2 жыл бұрын

Love this video, very informative!:))

@rtanaka 3 жыл бұрын

Fantastic, high quality content. Thanks Sherman.

@LYFEAccounting 3 жыл бұрын

Glad you enjoyed it

@ALDOELTA 2 жыл бұрын

Very thorough 👍🏻 thanks!

@keltig 3 жыл бұрын

Exactly what I was looking for

@marketingempiregroup Жыл бұрын

Let’s gooo!! 🔥 Shoutout to you on this one.

@LittleLightningBolt 2 жыл бұрын

This video is so helpful thank you!

@marclemar 2 ай бұрын

I’m a compensation professional. This video popped up as a result of my search for small business compensation. I’m starting a company to assist small businesses with their compensation not to be confused with payroll or taxes. This is a great video and it helps me understand what my future potential clients may be looking for. the one thing that I do want to point out. Paying hourly or salary is not a decision made by any company or business owner. It’s regulated by the FLSA if you are a business owner, please protect yourself by reading the FLSA to determine whether an employee is hourly or salaried. Failure to do so will leave you open to some huge risk and potential lawsuits.

@AshleyJustice 2 жыл бұрын

Thank you, this was helpful

@letitiamason4686 2 жыл бұрын

Thanks a million for this information

@queenmirian5042 Жыл бұрын

Thank you so much for the info so helpful 😊

@soulwhistler1469 2 жыл бұрын

Mannn u just gave so much I’m going tokeep watchin it to take correct notes thank you so much…

@LYFEAccounting 2 жыл бұрын

Glad it was helpful!

@stalwart94 2 жыл бұрын

Very good resources-binge watching these videos

@LYFEAccounting 2 жыл бұрын

Thanks for the support!

@mwong987 Жыл бұрын

Good information, thank you!

@sandywray3887 2 жыл бұрын

Great information just what I was looking for.

@LYFEAccounting 2 жыл бұрын

Happy to deliver!

@ionmarketing8615 3 жыл бұрын

Wonderful video, whole lots taking place in that field recently

@LYFEAccounting 3 жыл бұрын

You are right

@sandrabalogun4409 3 жыл бұрын

This video was so helpful for some mistakes I've already made. Now I know how to fix them and move forward productively! Awesome content. Thank you for sharing and for your level of transparency. I'm sure this will help many!

@LYFEAccounting 3 жыл бұрын

Glad it was helpful! Would you mind sharing the mistakes to help someone else avoid?

@kontrolmag 2 жыл бұрын

Great Video!

@dovelightcreations7793 Жыл бұрын

This was a great, informative video.

@oscargrouch1756 Жыл бұрын

I’m from New Jersey South Jersey I appreciate it very much thank you you are extremely helpful

@Danny-fs1hk Жыл бұрын

Your content is excellent!

@sweetBhavesh2000 3 жыл бұрын

Very Helpful video Still Learning

@LYFEAccounting 3 жыл бұрын

Glad to hear that, just curious, which part did you find most helpful?

@MykeltheEntrepreneur 3 жыл бұрын

What a great video. So insight and full of actionable steps. Thanks for the continued value.

@LYFEAccounting 3 жыл бұрын

Glad it was helpful!

@205inez 2 жыл бұрын

very helpful. thank you

@LYFEAccounting 2 жыл бұрын

Glad to hear that! Thanks for supporting.

@Chris-sc5jg 2 жыл бұрын

Very helpful thank you 🙏

@LYFEAccounting 2 жыл бұрын

You’re welcome 😊

@gardyherard5826 2 жыл бұрын

This video was very heloful. thank you for your contents

@langamaphumulo5009 Жыл бұрын

Yes this video was very helpful to me, i have hit like and the subscribe button. Thank you.

@chetaylor506 2 жыл бұрын

Exactly what I needed. Thank you LYFE Accounting💪🏾

@DavidDavid-uz8xp 2 жыл бұрын

Very good content

@hasratali2346 3 жыл бұрын

Thank you sir

@lemmims8622 3 жыл бұрын

This was extremely informative wow...

@LYFEAccounting 3 жыл бұрын

Thank you!! Just curious, what did you find most valuable?

@lemmims8622 3 жыл бұрын

@@LYFEAccounting the compliance part knowing what and how to pay your potential employees so much I had not considered and dealing with the government some sleepless nights and I don't even have employees yet...much appreciated I'm in New York state.

@arturohernandez3872 2 жыл бұрын

I think the same thing.

@lintsadvisors358 3 жыл бұрын

Great learning

@LYFEAccounting 3 жыл бұрын

Glad you think so!

@labellelaura2134 2 жыл бұрын

Thanks so much new subscriber to your channel 🙌🏻

@LYFEAccounting 2 жыл бұрын

Welcome to the family LaBelle!

@martin_calisthentics4598 3 жыл бұрын

Thanks alot now I can convince my friends to join my small business

@victorramirez7343 2 жыл бұрын

What is your small business about what do you sell ?

@1period 2 жыл бұрын

Fantastic video and information sharing

@LYFEAccounting 2 жыл бұрын

Thanks for watching.

@aquajon8701 Жыл бұрын

Heyyy can you do a video about piece rate pay?? Thinking about doing this with a hybrid of salary/hourly pay to add a system of rewards/profits to keep morale & motivation high

@edduin24 11 ай бұрын

Dope video

@tamilwoman 2 жыл бұрын

perfectly explained

@XYRN02 2 жыл бұрын

You guys are VERY thorough. I am so happy that I had subscribed; I am unsubscribing the others. As soon as I get the last of the things I need for my business, I will contribute. With this information, I feel very confident in my startup.

@LYFEAccounting 2 жыл бұрын

Thanks, Darrell! That means a lot!

@matinshaikh9971 2 жыл бұрын

Wonderful

@IsChosen33 2 жыл бұрын

New sub... God be with u..

@angelanewbill9864 2 жыл бұрын

Thank you 🙏

@LYFEAccounting 2 жыл бұрын

You’re welcome 😊

@GordoDustin 2 жыл бұрын

Hi Sherman, what forms would I need to give someone who is sub-leasing? We're opening a beauty salon and renting out rooms to other people for a flat monthly rate. Do I need to do anything other than have them sign a lease? Thanks!

@stockstudy8633 2 жыл бұрын

Great presentation! Could you send me a link regarding profit sharing? Thanks! Shan

@jacquelinegarrison8277 2 жыл бұрын

Thank you. What IRS Credits do independent contractors get?

@babyhuwe05 2 жыл бұрын

Can U do a hourly pay with bonuses as well for completing jobs ahead of schedule?

@FunLady525 Жыл бұрын

Hello Lyfe Accounting, I love your content!! Can you give me an idea how to handle paying a Virtual Assistant from another Country (Phillipines)?

@TojinDND 3 ай бұрын

Are there any videos where you guys talk about investing in Capital ?

@KDI3 2 жыл бұрын

I like your video, my I have permission to show this to my class?

@johnnybaker4166 2 жыл бұрын

I would like for you to be my CPA when I start my business in April 2022. How much do you charge?

@michelhaldane6224 3 жыл бұрын

Hey Sherman, thanks for this. I have one question, I am in the process of forming a Manager managed LLC, the individual is comfortable with profit share as remuneration. What are my typical tax liabilities for this manager if the buness turn over no revenue for a period of time?

@LYFEAccounting 3 жыл бұрын

If there is no net income or salaries being paid, then there should be no tax liabilities. In fact, we usually see a beneficial tax loss

@michelhaldane6224 3 жыл бұрын

@@LYFEAccounting Thanks very much:)

@cgprojectsfx 2 жыл бұрын

If I have someone give out flyers and/or do some things that deal with social media pr on Instagram etc. Should I try to make them a independent contractor or part-time employee? Any opinion.

@smileysmultimedia 2 жыл бұрын

@CG PROJECTSFX Depending on how much effort, skill and level of activity they provide your social media pages, probably should lean more towards part-time or full-time. I personally do social media content for a family member as well as myself. While there's plenty of simpler ways to do certain things; there can be several but related skills involved in producing social media content. Photography, Videography, Animation, Photo-editing, video-editing, audio recording, audio mixing....All these are mid to high level skills that most people go to school to learn. Then the actual sharing, getting the content out can be a whole separate skill in and of itself. If I'm you I would be knowledgeable at least about the content schedule, how often the person would get posts out and maybe the type of content; But to answer your own question about contractor or employee, discuss the content posting frequency at least. If they're posting for you once or few times a week then maybe not as much. But if you're going to be provided everyday good frequent content then the person is worth more.

@fiii2527 3 жыл бұрын

Profit sharing? I’m interested

@cldub2cw 3 жыл бұрын

My mind is blown! I might have to pay an outside company to do this!

@LYFEAccounting 3 жыл бұрын

Look into payroll software like Quickbooks Payroll to make it easier!

@victorramirez7343 2 жыл бұрын

Theirs no need to pay an outside company for a service you can do your myself once you have had received the proper knowledge of and thanks to these amazing informative videos you will do just that

@marygonzalez956 Жыл бұрын

I have only one employee ,, not to sure what to do with that one

@majorkramer 2 жыл бұрын

I have a question to ask & cannot get a straight answered on the internet. I live in Ontario Canada. How much can a employer right off of an emplyees salary? So let's say $500.00 a week how much can my employer right off from that amount?

@stephenlnoe 2 жыл бұрын

executives and managers 'irreplaceable' LOLOL.

@juliansmith2250 3 жыл бұрын

I only have one employee and I wanted to start with ADP or Quickbooks. Which would be better or should he remain a contractor. I’m trying to automate as much as I can.

@LYFEAccounting 3 жыл бұрын

Hey Julian, both are great.. we use QuickBooks payroll.

@juliansmith2250 3 жыл бұрын

@@LYFEAccounting Where in Atlanta is your company located?

@bunnyman6321 2 жыл бұрын

How you making out?

@sensely1366 3 күн бұрын

How do your pay your contractor?

@melissabrown6359 2 жыл бұрын

Is it okay to switch fro 1099 to w2 system mid year?

@LYFEAccounting 2 жыл бұрын

Yes!

@GodisAgapelove4172 4 ай бұрын

If my employer paid me through cash app but didn’t do it as pay can they still put that cash on my 1099?

@breiirvin1717 2 жыл бұрын

I am looking into hiring my first employee. The role I am looking to put them in my business is sales. Would it be possible to have them set on a commission/profit sharing payment for an LLC? They would get a commission on each sale they do and then earn a % of profits either monthly or yearly. Would they fill out a 1099 or a w2? I appreciate any feed back!

@LYFEAccounting 2 жыл бұрын

Possible, yes. Whether they should complete a 1099 vs W2, watch this video: kzfaq.info/get/bejne/aNCAp5mkqL6rinU.html

@hazelbankston3801 3 жыл бұрын

What’s are good websites to search market rate

@LYFEAccounting 3 жыл бұрын

Glassdoor

@mayrazuniga6819 2 жыл бұрын

So do I have to pay them with my own money even though I don’t think it will be enough, what I want to do is a small business but also want to make my own video game company like a small business?

@LYFEAccounting 2 жыл бұрын

You’d have to pay them with the money your business earns or your own money. If you can’t afford that, then you may want to consider hiring Independent contractors for a fixed fee to do specific projects you need help with. - Sherman

@jamesbutler3239 3 жыл бұрын

I want to know how are these delivery jobs 1099 ?

@LYFEAccounting 3 жыл бұрын

Can you elaborate a little more, so we can accurately answer your question?

@blackezi3 3 жыл бұрын

Thank you Dave Chappelle

@LYFEAccounting 3 жыл бұрын

😂😂😂

@shroomsopenminds3623 3 жыл бұрын

Lol bro he looks about 5 percent like Dave Chappell

@MrArtVein 3 жыл бұрын

You mean Shuler

@matalebtube4900 3 жыл бұрын

I have a company and I have foreign employees and I pay them per month $3000 in total, just wanted to know if there was a way for me to use it in Tax deduction? please help

@jpofeast4922 2 жыл бұрын

Is There Anyway I Can Apply For Your Job Sir?