Managing Payroll During Difficult Times
Business as Usual
Business owners are constantly juggling different responsibilities, from paying taxes to controlling costs, all while keeping an eye on the bottom line. However, the majority of businesses would be nowhere without their employees, making payroll a crucial aspect of business ownership. Along with being a legal obligation, the human component of business is vital. Employees who are paid well (and on time) are more likely to be productive contributors. Whether a company disburses its payroll bi-weekly or monthly, it must take care to deduct payroll taxes to comply with state and federal regulations. In the best of circumstances, it can be difficult for businesses, especially seasonal ones, to keep up with payroll. When profits are down, retaining employees while maintaining profitability can become impossible.
Coming to a Head
Profit loss and changing business environments affect all companies, large and small. The deeper your experience and understanding of the modus operandi within your field, the better equipped you’ll be to adjust when times change. While some businesses experience the rigors of a soft market and have to price down their products and services due to a rise in competition, others may feel the boom of a hard market. Markets tend to be cyclical. Global economic downturns with drastic outcomes across the board are rare. COVID-19 is undoubtedly an extreme circumstance. While economists will analyze the impact of this event for years to come, business owners are faced with the task of figuring out how to cope now.
Weathering the Extremes
Many businesses are struggling, but the restaurant and service industries have been directly impacted. During this time of hardship, it is essential to protect your human capital. Always be transparent when communicating with employees. If you run a small business with invested employees, set parameters. While layoffs may be inevitable, business owners must continue to meet obligations to employees. Be proactive in handling payroll issues. Keeping an eye on cash flow is important in normal circumstances. Having enough cash on hand to pay employees during uncertain times is even more vital to retaining your workforce. In dire situations, payroll should be the primary expense concern. Under the Fair Labor Standards Act, employers are obligated to provide payment for hours worked.
Get More Information
If a business is unable to meet payroll while considering closing its doors, options are still available. Currently, the Federal Government is offering the Paycheck Protection Program, which provides eight weeks of funding for payroll and other eligible expenses. Small businesses may also defer their portion of Social Security payroll taxes until next year. If you find yourself unable to meet your payroll obligations, find more information here (small business resources) and here (loan resources).
For the latest IRS information on COVID-19 resources and available programs please visit: https://www.irs.gov/
Contact our Payroll Specialists
Here at Alron Payroll, Inc., a subsidiary of Alron Enterprises, Inc., we are committed to providing exceptional service to meet all of your payroll and tax remittance needs. If you have further questions simply contact us by phone: (321) 951-7626 or email: [email protected]. You can always trust our payroll specialists to go above and beyond in providing superior services and customer care. Don’t hesitate to contact us today. We look forward to working with you!
by Nick Climan – Content Creator at Half Full Marketing