Running your company’s payroll is one of the top responsibilities of any business owner. Most owners think hiring an outside company to run their payroll is their best bet. Yet, you can do your own payroll.
All it takes is following your own payroll for dummies guide. Don’t know where to start?
We’ve got you covered. We’ll give you an easy to follow step by step guide to how to do payroll yourself. Read on to start taking care of your business today.
Your Business Owner Guide to How to Do Payroll Yourself
Some business owners underestimate the importance of accounting operations to run successful businesses. While it may seem intimidating to do it your own payroll, it isn’t as difficult as you may think. It all comes down to learning what you have to do to comply with your local regulations and setting up the right system.
Don’t know how to take charge of your payroll? Here’s your brief payroll for dummies step by step guide to take care of business.
1. Choose Your Accounting System
Every business has its own needs. It’s important to choose the right systems to set your business for success. Your accounting operations aren’t an exception to this rule.
You must research and choose an accounting system that fits your business needs. If you’re running a wholesale business, choose a platform that offers specific industry features such as receivables and inventory tracking. Also, you should make sure that the system offers payroll processing.
2. Set Up Your Payroll and Taxes Accounts
Before running your payroll, you must set up your payroll and taxes accounts. The first one is the bank account used to pay your employees. Also, it’s important to set up any required tax accounts with the applicable government agencies.
An example is your business sales tax account and any tax payment accounts. It’s recommended to consult an accountant for more information about the applicable laws.
3. Collect W-4s, I-9s or Any Required Paperwork from Your Employees
In order to pay your employees, you must collect any required onboarding paperwork to comply with local regulations. I-9s will provide information regarding their eligibility to work in the United States. While W-4s will give you details about the tax withholding schedule chosen by your employees.
4. Set Up Your Employees’ Direct Deposit
Before running your payroll, it’s important to set up your employees’ direct deposit. Make sure you verify and confirm the account you set up so there aren’t any mistakes when you run your payroll.
You may skip this step if you’re going to pay them using company checks. If that’s the case, you may consider using a pay stub creator to generate your check stubs online.
5. Pay Your Employees
Once you have all the paperwork and systems in place, it’s time to run your payroll. Don’t forget to set up your chosen payment schedule and follow any system requirements to run your payroll on time.
Wrapping It Up
As a business owner, running your accounting operations may seem intimidating. Yet, doing your payroll and other accounting tasks is easier than you think.
It will come down to using the best system for your business and setting up the required accounts. Consider consulting an accounting expert to learn more about your local taxing and accounting regulations.
Learning how to do payroll yourself is half the game if you want to improve your operations. Have you considered running paperless payroll? Not sure if it’s the right call?
Read our article to learn the top benefits of going paperless today.