Setting up a Payroll System for Your Business

Before you begin hiring employees, you will need to understand the types of employment taxes you will be required to deduct from employees and to pay to various federal and state agencies. These taxes are:

• Federal Income Tax
  
• State Income Tax (in most states
  
• FICA Taxes (for Social Security and Medicare}
  
• Federal and state unemployment taxes
  
• State worker's compensation taxes

For More Information:
All About Unemployment Taxes [link urk=http://biztaxlaw.about.com/od/settingupapayrollsystem/bb/employtaxtypes.htm]Types of Employment Taxes

• Understanding Your Responsibilities as an Employer
• Understanding the Types of Employment Taxes
• Make Decisions on How and When to Pay Employees
• Decide Who Will Do Your Payroll Work
• Determine the Paperwork Needed for New Hires
• Calculate Pay for Hourly and Salaried Employees
• Create a Payroll Register and Set Aside Payroll Liabilities
• Provide Payroll Tax Reports to Taxing Authorities
• Submit Payroll Taxes to Taxing Authorities
• Set Up a Yearly Payroll Tax Calendar