Are you wondering how to set up payroll for a small business? If you are a business owner with either employees or contractors, you will need to set up a payroll system.
While setting up payroll is necessary, it can be a confusing and difficult task. Unlike other mistakes in your business, if you set up or run payroll incorrectly, you can face fines, lawsuits, and even the closure of your business. Fortunately, by knowing what steps to take, you can set up your payroll correctly and decrease your risks of making mistakes.
If you need to set up a payroll system but aren’t sure how to get started, this short and simple guide is for you.
Know What You Need To Get Started
The first step towards setting up your payroll management system is to know what you need to get started. This is an essential step, one that can save you a lot of legal trouble long-term. Visit your state’s labor website to find out everything you need to get started with payroll.
Choose a System and Schedule
The next step for setting up your small business payroll is to choose a system to use. You can choose to process payroll manually or use an automatic system. After choosing your system, you should also choose your payroll schedule.
Add Your Employees
After choosing your payroll system and schedule, it’s time to add your employees into the system. Depending on the system you have, this can be as simple as having your employees fill out a few online forms, or as difficult as manually processing each employee. Make sure you are adding the correct information for each employee to decrease your risks of making a mistake.
Learn the Ins and Outs of Running Payroll
After your payroll is set up, you need to learn the ins and outs of running it. This can be a complicated process as there are many moving parts to processing payroll. Consider taking advantage of the customer service and support that is available for the system you choose.
Consider Outsourcing
If you are feeling overwhelmed with all of your payroll tasks, considering outsourcing. This is a great way to take advantage of a team of experts for a fraction of the price. Research payroll outsourcing companies and choose the best one for your business.
This Is How To Set up Payroll for a Small Business
By following these tips for how to set up payroll for a small business, you can make sure your system is set up correctly.
Start by knowing all the rules and regulations you need to follow. You should also choose a payroll system, determine a payroll schedule, and add your employees. Make sure to learn the ins and outs of running payroll and consider outsourcing if you are feeling overwhelmed.
Follow these tips and you’ll be well on your way to paying your employees or contractors.
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