If payroll were just about calculating wages and writing checks, it would be easy. But as a business owner, you are responsible for staying in compliance with many government regulations, including filing and paying certain employer taxes, and deducting and depositing taxes on behalf of your employees. Make a mistake, and you could be responsible for paying thousands of dollars in penalties and interest.
The IRS tells you how to run payroll through the Employer's Tax Guide. You will have to work with your state and local government agencies to find out how you need to comply with their payroll tax requirements.
The advantages of working with a payroll service come into play most heavily with tax compliance. If you work with a full-service payroll provider like SurePayroll, you won't have to stay on top of changing federal, state and local tax regulations - we'll do that for you.
Before you ever begin paying employees, you'll need to set up your business to meet all the federal, state and local payroll regulations. Below are a few steps you'll need to complete before processing payroll.
Obtain Business Identification Numbers
Collect the Appropriate Forms from Employees
Classify Workers Correctly
Create a Payroll Schedule
Choose payment method
Once you're running payroll, you'll need to do the following to stay in compliance. Please note, these are just some of your responsibilities as an employer.
Deduct the Correct Amount of Funds from Employees' Paychecks
Pay the Right Amount of Employer Taxes
Make Regular Federal and State Tax Deposits and Filings
Provide Year-End Documents
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