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Minnesota Payroll Assistance Tips: A Small Business Owner’s Guide

July 5, 2023 | Carl Corneliuson
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    As a small business owner, maintaining accurate financial records is crucial to growth and the enduring success of your company. Payroll can be a difficult and time-consuming process, especially when it comes to ensuring tax compliance, but there are resources available for help. Check out these payroll assistance tips for Minnesota-based businesses, including resources you can leverage that will help put your mind at ease.

    Available Resources for Payroll Assistance

    • Minnesota Department of Revenue: Provides guidance and resources on payroll taxes, including withholding tax, unemployment insurance tax, and workers’ compensation. Visit the agency’s website for more information on payroll tax requirements and filing deadlines.
    • Professional Payroll Services: Many small businesses in Minnesota opt to outsource their payroll processing to professional service providers. These experts can handle all aspects of payroll management, from calculating wages and taxes to preparing and filing required forms.
    • Payroll Software Solutions: Several payroll software solutions are available in the market to help small business owners automate their payroll processes. These tools can save you time and reduce the risk of errors while ensuring compliance with state and federal regulations. Paychex, ADP, and QuickBooks are popular software options.

    Staying On Top of Compliance

    Keep in mind that requirements for payroll, and the resources available to Minnesota-based businesses, change frequently. If you don’t work with an experienced payroll and tax professional who understands the challenges you and your organization face, that puts a heavy burden on you to try and keep up with changes implemented by state regulators.

    As mentioned above, one area where many small business owners get stuck is handling payroll taxes. This is because they are focused on running and growing their business, not fully understanding their payroll tax obligations. Organizations are required to remit or withhold federal income tax, state income tax, the state’s unemployment taxes, Social Security and Medicare. Seems like that’s a lot of information to calculate and track, right? That’s because it is.

    If you don’t have in-house accounting, don’t want to work with an outsourced professional service, or don’t feel your company is currently in a position to bring in any outside help, staying current with the Minnesota Department of Revenue’s guidance and resources is critical. Be sure to keep accurate payroll records on file to ensure state and federal compliance. You’ll need to keep earnings, deductions and tax withholdings records for each of your employees. According to the Minnesota Department of Revenue, they can audit your company’s tax return within 3.5 years after it’s due or filed, whichever is later. The IRS, meanwhile, may audit a return from up to six years prior, which is why you have likely heard you should keep your last seven years of tax returns and records conveniently located.

    Speed Up Payroll While Ensuring Compliance

    The payroll assistance tips and resources mentioned above will simplify your Minnesota-based company’s payroll process, making it easier to be compliant with tax regulations. By staying on top of your company’s finances, and seeking professional expertise when needed, you’ll be on a path to grow your business and achieve sustainable, long-term success.

    Learn more about payroll services and expertise Corneliuson & Associates can provide your business, or book your free consultation to speak with one of our small business payroll accountants. Our Minnesota-based professionals stay current with complex payroll rules and regulations, ensuring your business’ financials are in good hands.