4 Easy Steps for Handling Your Company’s Payroll

Payroll processing can provoke no shortage of headaches for those new to small-business ownership. Setting up your company’s payroll — from computing employee taxes to establishing routine pay periods — can be a daunting task, but it doesn’t have to leave you perpetually frazzled and frustrated.

As outlined in a new infographic from Intuit, there are four essential (and surprisingly simple) steps involved in handling your company’s payroll.

1. Understand what’s involved. Familiarizing yourself with the basic concepts and legal requirements of employee payroll is the first step. “Payroll” simply refers to the total amount of money paid by an employer to his or her employees on a recurring basis. More complex, however, are payroll taxes. Every employer must meet specific payroll responsibilities, according to federal, state, and local laws. Paying employees means you must simultaneously withhold portions of their compensation to meet applicable income tax, social security, Medicare, and other requirements. As a result, it’s critical to report and deposit payroll taxes to the appropriate agency on time, every time.

2. Find what works for you. There’s more than one way to handle employee payroll. In fact, the options at your fingertips are plentiful:

  • Do it yourself (a time-consuming process that, although cost-effective, could expose your business to the risk of expensive rookie mistakes);
  • Invest in commercial payroll software (a reliable and commonly preferred method);
  • Hire an accountant (a means to obtain quality professional assistance, often at a fairly high price); or
  • Outsource your payroll (a convenient choice, but one that brings a loss of control and flexibility).

Choose the method that makes the best sense for your business — and that’s easy on your nerves, your schedule, and your budget.

3. Know what you need from employees. Time and again, employers make the mistake of getting their own ducks in a row while failing to organize employee information in a similarly efficient manner. Ask your employees to complete the appropriate forms that verify their legal status and specify their tax withholding. Once this information is entered into your payroll system, paycheck calculations can be generated with the applicable taxes withheld.

4. Proceed to pay. The final step in the payroll process is to disperse funds and corresponding filings to the appropriate tax agencies. Once you’ve paid your employees and all outstanding payroll taxes, you will have successfully completed the payroll process — a process that will continue, but in a substantially less nerve-wracking way.

To learn more about setting up your small-business payroll, check out Intuit’s comprehensive new infographic.

Intuit payroll Teaser

About Michael Essany

Michael Essany is a former E! Entertainment Television host and nationally published author who was recognized by A&E Biography in 2005 as "One of America's Most Remarkable People." Michael currently serves as Vice President of Indiana Grain Company, LLC.
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4 comments
bredon
bredon

Accounting is one of the most important tasks of any business organization to keep running your business smoothly. If there is any sort if issue in your accounting department then it may cause you big time problems. So it is better to have specials accounting services providers which have knowledge in this field. so by giving your accounting task to Edmonton accountant you will be burden free from your accounting and you can put your time in some other administrative work also.

Emilia Nolette
Emilia Nolette

Its difficult to manage payroll tax by an individual or a company if he do not has any knowledge of it. I think these 4 steps are really informative and one can at least understand what is payroll tax management is about and how it could be done.

Nkermit
Nkermit

Another tool that can contribute to lowering payroll expenses are automated expense report software.  Similar to commercial payroll programs, software like Xpenser and Expensify are great tools for efficiently tracking costs of multiple employees.  These tools can save time and effort, and work excellently when paired to an accounting and payroll system.

white label payroll service
white label payroll service

Managing payroll tax payments can be a frustrating task, and people often mishandle their accounts due to lack of experience.Regardless of the complexity of your payroll taxes, A team of specialists will handle your situation with skill, respect and professionalism is called payroll tax services.....

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  11. [...] in a tight labor market. Bane takes a telemarketing job. Michael Essany says there are four easy steps for handling payroll. Keith Elwin is the world’s pinball wizard again. This guy demonstrates how [...]

  12. [...] in a tight labor market. Bane takes a telemarketing job. Michael Essany says there are four easy steps for handling payroll. Keith Elwin is the world’s pinball wizard again. This guy demonstrates how [...]