Unless your small business is a one-person show — odds are you have a few employees who expect payment every so often.
Handling your finances can seem like tricky business, especially after you introduce other people into the mix. But, tackling payroll doesn’t have to be a tedious or monumental task.
The key is setting up a solid payroll foundation. Once you have your system in place, paying your employees will become a breeze.
Ready to set up payroll, but aren’t sure where to begin? We’ve got you covered!
Here’s everything you need to know about how to do payroll for your small business.
Setting Up Payroll
When setting up your payroll system, there are four fundamental aspects you need to figure out before you can do anything else.
You need to decide how much you’re going to pay your employees when you’re going to do it, what method you’re going to use, and what you’re going to withhold.
Before you hire anyone, you need to figure out if you’re going to pay them an hourly wage or a set salary. Whichever method you decide depends entirely on the type of work you’re employees will be doing and your company.
Next, you need to decide when you’re going to pay your employees. You can pay them weekly, monthly, bi-weekly, or semimonthly. As a general rule, employees paid an hourly wage should receive payment more frequently than salaried workers.
Paying your employees via direct deposit is the most convenient form of payment for both you and your workers. That said, you can pay your employees via paper checks, cold hard cash, or pay card.
Whichever method you choose, you need to make sure to supply all of your employees with pay stubs as well. Visit PayStubCreator to generate professional pay stubs fast: https://www.paystubcreator.net/create-stub.
Handling Your Company’s Payroll
If you decide to pay your employees via direct deposit, you won’t have to worry about physically handling anything outside of their pay stubs. That said, you will still have to take care of and withholdings and deductions.
Depending on how you pay your employees and the benefits you provide them with, you may have to deduct everything from health insurance to taxes.
While you can calculate deductions yourself, you may want to consider investing in some payroll software.
Payroll software will help you keep track of how much you owe your employees. It will also help you track how much you need to deduct from their gross pay and make monitoring your business’s finances that much easier.
Payroll software will also help you create clear and concise records of your company’s expenses. These records will be essential in helping you track your company’s financial growth over the years.
How to Do Payroll for Your Small Business
Setting up and handling your company’s payroll can seem like a pretty intimidating task to take on by yourself. But, it doesn’t have to be.
Once you create your foundation, payroll can be as simple as printing out a few paystubs once a month.
Now that you know how to set up employee payroll for your small business, it’s time to get to work.
Are you looking for more ways to help your small business grow? We can help!
Contact us for information about our available services or to get started today!