Finally! Your business is up and running, you’re getting paid to do what you love, and you’ve even hired an employee (or two). Now it’s time to pay the people who help make that happen every day. But how much do you pay each employee? And how much are you supposed to hold back for the tax man?
First, you can take advantage of apps that do paycheck and tax withholding calculations for you — that’s the easy part. Figuring out what the salary is in the first place is the tougher part of the equation. Smart small businesses establish pay grade scales to ensure fair compensation for all employees, to help avoid perceived pay discrimination. Check out the infographic below for a how-to on putting a salary grade system in place.
Infographic by Column Five