Setting up a Payroll System for Your Business

Here are the payroll tax reports you must file with the appropriate federal taxing authorities:

• Quarterly Report - Form 941
  You must file an "Employer's Quarterly Tax Return" on Form 941 showing the amounts payable for employee withholding and Social Security/Medicare deductions, the amounts you have paid for these payroll taxes, and the amounts still owed.
  
  
• Federal Unemployment Tax Report - Form 940
  You must file an annual Federal Unemployment Tax (FUTA) Return on Form 940. You must show the amounts owed for unemployment tax on total gross pay for all employees, and the amounts already paid.
  
  
• State Worker's Compensation
  Check with your state employment division to see what reports must be filed for state worker's compensation taxes.
  
  
• Local Taxing Authority
  If you are required to withhold taxes from employees for local income taxes, check with your city or county to see what reports they require.

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