How do I do payroll?
submitted by pnd

RWilliams

You'll want to start with learning about payroll tax. You need to withhold that tax from each employees paycheck, and then report that accurately and promptly.

Stan Kenton

That's a big one, but payroll involves calculating employee wages and calculating taxes before cutting checks. Start by calculating employee wages, then use those figures to calculate federal income tax, Social Security, Medicare, and any state or local taxes that apply. Those taxes need to be withheld from the check.

Most businesses use payroll software or payroll services, since this is really important to get right. If you're using software, it can automate calculations to make sure you're compliant with tax law.

If your records of hours worked are accurate, you can figure out over time and bonuses from there.

You'll need to file payroll tax returns on time.

If you're just starting a job doing payroll, figure out how often it's paid (weekly, biweekly, monthly). If the company is using software, watch all the tutorials you can. Employees won't want to see a disruption in their checks while you learn the ropes. Good luck. Hopefully you're not in a time crunch.

abe palmer

When calculating payroll, you start with gross wages, then subtract taxes, insurance premiums, retirement contributions, and any other deductions.

Find out if you need to handle workers' compensation insurance or unemployment insurance taxes. You don't want to find out you're out of compliance later on.

Set up a payroll system early on, because it will take care of a lot of the repetitive tasks you'll need to handle.