The economy is on the rise and small businesses are to thank. More than half a million new small employers start each year in the United States, according to the U.S. Small Business Administration (SBA). Small businesses represent 99.7 percent of all employers, employ half of all private sector employees and pay more than 40 percent of all U.S. private payroll.

If you’re setting out to start your own business, you’ll have a lot of issues to deal with — hiring a staff, finding an office space, securing clientele, and managing payroll, among other things. These tips will help you stay in control as a new employer in the New Year:

	Understand your responsibilities as an employer. Before you can pay your first employee, you need to register yourself as a new employer with the IRS and state employment agency, report your new hires to the state, accurately withhold taxes and deductions from your employees’ paychecks, as well as deposit and file federal, state and local taxes throughout the year. It’s easier to start off on the right foot than try and go back to fix things retroactively.
	Take advantage of free resources. You don’t have to spend a lot of time and money to get up to speed on what’s involved. Attend meetings at your local small business organization such as the Chamber of Commerce. There are also other sources of free information. PayCycle has a free 10 page white paper that summarizes the 68-page IRS Circular E. And, free paycheck calculators can help you with what-if-scenarios.
	Secure a trusted adviser. Doing a payroll on your own can lead to headaches and financial penalties. A do-it-yourself payroll solution such as PayCycle.com will prevent those problems. The easy-to-use service walks you step-by-step through everything you need to know to stay on top of payroll, including instant paycheck calculation, paycheck printing on pre-printed or blank check stock, e-mail reminders for upcoming payroll deadlines, and customer support with payroll experts who can “see your data” real-time to quickly resolve issues. This service integrates with Microsoft Money – Small Business.

One out of three small businesses is penalized by the IRS each year for missed payments and/or inaccurate withholdings. With penalty fees as high as $1,200, you’re better off trusting a reputable partner. Ask your accountant if he can help you with your payroll. Or, better still, save yourself a lot of hassle with easy-to-use tools such as PayCycle.com.

Don’t overlook contractors. Even if you’re just hiring contractors that aren’t subject to payroll tax regulations, you are still responsible for giving them Form 1099-MISC at the end the year, and for reporting their payments to the IRS. PayCycle lets you electronically file up to 100 1099-MISC forms for a flat $20 fee. You can print contractor copies on blank paper from your printer. You can even pay contractors at the same time you pay employees with PayCycle Payroll Plus.

Being a new employer is an exciting time. By taking the time at the onset of your business’ launch to make sure your payroll is in good hands, you can save yourself hassles later on. For help on how to get setup as a new employer, and to access free valuable tools such as the free Payroll 101 Guide, call (866) 729-2925 to speak to a payroll expert or visit http://www.paycycle.com.