Did you search payroll tax business plan trying to figure out how to treat the issue of payroll tax in the pro forma of your plan? The key question is whether you're right to be considering the payroll tax at all. What does your personnel plan entail? If you're only hiring 1099 contractors or plan to use consultants to fulfill the basic personnel needs you'll have, these are simply expenses and you don't need to factor in any additional tax. (All issues of taxation become the contractors' concern.) However if your plan includes the part-time or full-time employment of individuals outside of your ownership circle, you need to show:
• When these people get hired
• What their official positions or titles will be
• The base salary or hourly rate at which they are paid
• How their compensation rises year over year (cost of living, raises, etc.)
• Any other pertinent details
The pro forma section of the business plan needs to show 3 years of projected expenses and revenues. Ultimately, this presentation should include a revenue forecast, the break-even point, a profit and loss section, the cash flow, and a balance sheet for the life of the model. (Showing the first year post-funding in a monthly detail – including the personnel plan – is also critical and will be required by the SBA.) Payroll taxes can vary depending on federal law changes and the state in which you do business. You should consult an accountant or speak to a payroll service in your region to learn more if you're confused. Another option is hiring MasterPlans to write the business plan for you or to review your existing pro forma. Our team of experts has almost a decade of experience in this arena and can help you today! Call toll-free to learn more: (877) 453-2011.
