If you have employees, you have payroll responsibilities, and payroll is complicated. Even if you have only one employee, you have many important tasks to take care of, and most of them involve due date and the IRS. This article will help you understand the tasks involved in payroll processing and the options for processing payroll and decide on the option that best fits your business needs.
The first step in deciding how to process your payroll is to be aware of all the tasks involved in processing payroll. Payroll activities involve more than just writing paychecks. You must set aside money and make periodic payments to the IRS and to state and local taxing entities. You must also file reports with these entities. All of the reports and payments must be submitted on a timely basis, in order to avoid fines and penalties.
Ask yourself these questions to help you decide on a payroll processing option.
Here are three options to consider for processing your payroll, submitting payroll reports, and making payroll tax deposits.
Review these options for accounting software with payroll options.
Even if you have only a few employees, you may want to consider sending your payroll out for someone else to do it. Here are some factors to consider in outsourcing payroll.
How do I decide on a payroll processing service? You can let an assisted service do the work for you, or you can have an online service that helps you do it yourself. Learn more about several payroll services and their costs.