How to Turn a Career Setback into an Opportunity for More
For many, the pandemic not only changed the way they work, but it also changed whether they had a job or not. Whether due to the pandemic or some other reason, deciding what to do after a career setback is tough. Instead of looking for another job, some choose to leap into entrepreneurship. The following guide will help you decide if this is the right move for you.
Pros and Cons of Entrepreneurship
There are, of course, pros and cons of entrepreneurship. For example, as an entrepreneur, you are free to work however and whenever works best for you. That freedom is not for everyone, but starting a business could be your next step, if it feels right to you. Similarly, starting a business allows you to create wealth, because the goal of your company is likely to provide you with a salary. It’s risky, however, since there’s a chance it won’t be profitable, especially initially.
Getting Started the Right Way
Starting a business takes strategic planning. If you've got some start-up capital, you can hit the ground running with a team of employees. Therefore, it's essential to keep accurate track of your payroll and team management from the start.
Payroll and Team Management
Setting up your payroll system is crucial to keep your employees paid properly, submit your payroll taxes accurately and on time, and stay compliant legally with local, state, and federal laws. Follow these steps to get started with your payroll:
Create a schedule. You need to determine how often you want to pay employees (every other week or the first and 15th of every month, for example) and stick to it.
Keep your paperwork in order. Your employees fill out a Form W-4 when hired so you’ll know how much to withhold from their paychecks for state and federal tax purposes.
Don't forget about Social Security deductions on every paycheck.
Another type of tax to consider is the Federal Unemployment Tax (FUTA). Verify, via your state’s unemployment agency, whether this is required in your area or not.
Now, there is more to your payroll system than those four items, but they’re a great starting point. For instance, many payroll systems also offer employee time tracking, which not only simplifies timesheets, but overall team management. Business owners and employees both benefit from systems that allow them to track time on the go and ensure their hours are always up to date.
One of the primary advantages of using a payroll software system is that it brings all the moving pieces of team management together into one platform. Instead of manually calculating the complicated formulas of payroll taxes and deductions, plus cutting the paychecks themselves and all the other essential pieces of payroll, getting a system in place will make your life and business much more manageable. With a suitable payroll system, your business can also keep accurate records no matter how big your business gets.
Modern payroll systems digitally store documents and payslips, further simplifying and streamlining your business. When looking for a payroll system, compare features like integrations with other software, remote access (to access from different devices), and if they include a mobile app with the desktop software.
Instead of stressing about finding another job, a career setback may allow you the freedom to explore creating a thriving business. In fact, it could be the ticket to you living your happiest life ever! Entrepreneurship isn't for everyone, but if you get prepared and set up systems like a payroll from the start, you'll increase your chances of success.
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This guest blog is by Jenna Sherman, a mom of three (two girls and a boy) and an aspiring writer, who created parent-leaders.com as an avenue for parents who want to make sure their children grow up to be strong, independent, successful adults. By providing a collection of valuable, up-to-date, authoritative resources, she hopes to help other parents acquire the skills they need to raise future leaders.