Setting up a Payroll System for Your Business

Make decisions on how and when to pay employees. Here are the decisions:

• What employees will be hourly and which salaried?
  
• How often will you pay employees - weekly, twice a month, every other week, or monthly?
  
• How and when will you pay overtime?
  
• How will you require hourly employees to keep track of their time?
  
• What paid time off will you provide for hourly employees? You are not legally required to pay any employee for any time off, but most businesses pay for:
  
  • Holidays (as many or as few as you want)
    
  • Vacations, a certain number of weeks a year, depending on the number of years worked
    
  • Sick days
    
  • Personal days

Index: Setting up a Payroll System for Your Business

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