How To Do Payroll - Explained step by step!
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 service does it.
There is the option to have a service do all the calculations for you, like ADP or Paychex, even Quickbooks Online. But if you don’t have a large number of employees, or don’t plan to, it’s not that hard to learn how to do it yourself and you can save some money in fees.
I’m sure every small business owner has a lot of payroll questions. Some of you may think it’s too complicated, that there are too many rules and regulations for just anyone to do it.
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.
Learn how to enroll your business with the proper taxing authorities.
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