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

• 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