Successfully Managing Payroll as a New Business Owner
After purchasing Country Butcher, owner smoothly implements payroll automation and 401(k) plans with PrimePay.
I wanted to be able to provide my people with information in a format that’s helpful to them,” says Karen DeRasmo, Owner. “With PrimePay that’s absolutely possible and it’s also quick, easy, and immediate. I feel like a hero!”
New owners take on an existing business
In September of 2021, Karen DeRasmo, her husband, and her son became the new
owners of Country Butcher Fine Foods, a well-established butchery, deli, and bakery cafe situated in trendy Kennett Square, Pennsylvania. With the purchase of Country Butcher, DeRasmo inherited 25 employees, a loyal cohort of regular patrons from the local district, and a guaranteed stream of weekend visitors drawn in by the fragrant promise of freshly baked bread, roasting meat, and mouthwatering cheeses.
I felt all kinds of things could go wrong,” says DeRasmo. “When we first contacted the company that would help us initiate the retirement savings plan, I had no idea of the legal complexities nor of how many other parties needed to be involved.”
DeRasmo also inherited a fully functional payroll administration system the previous owners had installed years earlier: PrimePay. The system — and digital payroll administration in general —- was somewhat new to DeRasmo. Her previous employers had an individual or department assigned to handle this responsibility, so while she was familiar with what needed to be done, she wasn’t trained on how to do it. She knew she would need help understanding the requirements, processes, and technical tasks of payroll and benefits to be successful as a new owner.
Three issues further complicated things for DeRasmo:
1. She wanted to rename the business.
Becoming DeRasmo Specialty Foods dba Country Butcher meant she needed to set up a new PrimePay account and configure her HR processes under that account.
2. At the suggestion of her son and co-owner, she wanted to put a 401(k) workplace retirement plan in place for the store’s employees.
Implementing a 401(k) involves setting up trusts, establishing recordkeeping practices, and creating enrollment processes. Employees had not previously had the opportunity to save for retirement through a formal scheme, and DeRasmo was committed to making this happen, despite her reservations about the complexity of the effort.
3. Not all employees lived in Pennsylvania, complicating payroll taxes.
“Our staffers come from both Pennsylvania and Delaware,” says DeRasmo. “That means paying taxes to a variety of states and municipalities with different tax regimes. There was a lot to think about and get right.”
Again, DeRasmo was in unfamiliar territory. Nailing all of these objectives down sounded formidable. She hoped that PrimePay would be a helpful partner that could provide support when and where she needed it.
She was right.
PrimePay offers stability and support
From their first interaction, PrimePay made sure DeRasmo was never left to figure things out on her own. Instead, PrimePay provided exemplary client support from day one, ready to help through the process of starting her new account and managing her financial obligations to her employees.