How to do payroll is not only an important part of your small business accounting info, it’s a great thing to know - - whether you actually calculate your own employee’s pay or just want to know the process and procedures, so you can make sure that whoever is doing your small business payroll is doing it right.
And knowing the process is very important, since it is still your responsibility, whether you do it or a payroll service does it.
There are regulations to follow - - with the Department of Labor, Internal Revenue Service, state unemployment and withholding agencies, and local villages and city governments.
I'm going to try and point out what you need to know here. But it wouldn't hurt to acquaint yourself with your state and local regulations, which can be found on their websites. Also, download the current version of the IRS Circluar E, found here:
There is a wealth of information in there.
Well, I’m going to touch base on all the different aspects of having employees here in the following pages.
You will find out:
**how to get enrolled for employer payroll taxes
**the different types of payroll tax deductions
**the difference between hourly and salary wages
**when is a worker an independent contractor
**how to calculate payroll
**how to calculate payroll taxes
**a sample payroll
**quarterly payroll tax returns
**year-end Forms W-2 and 1099
It’s a big topic, how to do payroll, so be patient and read thru all the pages.
If your small business is big enough to hire employees, that’s a good thing. That means you’re expanding and growing. Just remember to grow slowly, and make sure you are aware of and plan for all the expenses that come with added employees besides just their paychecks.
Employees need tools and workstations and supplies, as well as heat and lights, and a place to park, etc. They also want benefits. Some employers share the profits with their employees, and they truly become like part of the family, while other employers choose not to.
In the next section of how to do payroll, I’m going to talk about labor posters and enrolling your business with taxing authorities. Click on the link below to go to this next page.
Does this all sound like a bit more than you want or have time to do?
Well, I do provide payroll services. I have over 25 years experience in small business accounting. Send me a quick email and I'll provide you with a free quote. I'll do the preparation, the calculation, and tell you how much to write the payroll checks for. And you keep your focus on running your business!
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Learn to set up accounting files, create your own chart of accounts, create and use your own cash journals, and learn to create monthly income statements. Get lots of samples and some extra info too!
Here's the link: