1. Money

Getting Started with Payroll and Employment Taxes

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If you are just starting your business, the thought of figuring out the complexities of employment and payroll taxes might seem overwhelming. We will go through the process of setting up a payroll system, paying employees, and filing payroll tax forms.
  1. Payroll Tax Basics - What Do Those Terms Mean?
  2. Before You Hire Your First Employee
  3. Writing Payroll, Recording Payroll Information
  4. Paying Payroll Taxes, Reporting Payroll Taxes
  1. Setting Up Your Payroll Processing System
  2. End of Year Payroll Tasks
  3. Employees vs. Independent Contractors

Payroll Tax Basics - What Do Those Terms Mean?

Before you get started with your payroll system, you need to know the terms used to describe payroll and payroll taxes. Knowing the terms will make it easier for you to understand how payroll and payroll taxes need to work.

Before You Hire Your First Employee

Let's begin with the first employee. Before you hire that person, you need to know your responsibilities as an employer and the paperwork needed for that hire.

Writing Payroll, Recording Payroll Information

The process of writing paychecks and recording payroll information on a payroll register and employee earnings records.

Paying Payroll Taxes, Reporting Payroll Taxes

A payroll tax system includes (1) making payroll tax deposits either semi-weekly or month (2) submitting quarterly payroll tax reports and annual unemployment tax reports, and (3) annual wage and tax statements to employees and

Setting Up Your Payroll Processing System

After you have hired your first employee, you will need to make some decisions about payroll, including pay structure and frequency, and you will need to decide how to process payroll. We will discuss these decisions in this section.

End of Year Payroll Tasks

The end of a calendar year means reports due to employees and non-employees, and reporting for taxes. Tax information forms are due to employees and independent contractors by January 31 and to the appropriate federal agency by the end of February.

Employees vs. Independent Contractors

One of the most confusing parts of paying workers is to know if these people are employees or independent contractors. Worker status determines how you pay and whether you withhold taxes. And the IRS wants to be sure you are classifying workers correctly.

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