Payroll 101
What Every Employer Should Know


Congratulations! Your business is growing and you need employees.  Whether staffing up or looking for your first
hire, we’re here to help.
 

Three Basics of Payroll

Pay Day!
Every week? Every other week? On an agreed upon schedule, just calculate your employees’ wages, withhold the correct amount of taxes & issue their paycheck.

Paying Payroll Taxes
You will need to pay the government the Federal & State taxes withheld from your employees’ paychecks — as well as payroll taxes your business owes.

Filing Tax Forms
Let’s face it. Forms are frustrating. But you’re required to fill & file them, so the government knows who’s been paid what, the taxes paid, & other details. Most businesses file quarterly;
and some file monthly or yearly.

Three Common Payroll Pitfalls

Errors
Hours. Wages. Withholdings. Taxes. Health care benefits. Getting all those calculations right gets complicated. Fortunately you have software and service options to help.

Deadlines
It’s your responsibility to keep up with Federal & State tax deadlines. You can do it at the IRS website. Or use our payroll product that automatically sends you reminders when taxes are due.

Penalties
It happens… Deadlines get missed.
Calculations have errors. But a reputable full
service payroll option
like ours takes complete
ownership of all your tax responsibilities.


Which payroll method would work best for you?

Here are five ways small business owners calculate and report their payroll taxes.
Take a look—and decide for yourself.

Methods

Advantages

Trade-Offs

Payroll Options

Manual System
You use pen & paper, or a calculator & spreadsheet.
  • Most affordable
  • Greatest control
  • For some, most familiar
  • Most work
  • Most time-consuming
  • Highest chance for errors
Accurate Calculations
Payroll Software
Run payroll yourself in a few clicks with the help of payroll software.
  • More control because you do it yourself
  • Calculations done for you in just a few clicks
  • Faster than manual methods
  • Software learning curve
  • You make bank deposits
  • You report & file taxes
Payroll Software
Payroll & Accounting software together
Small business software, like Intuit Payroll & QuickBooks, work seamlessly together.
  • Total control
  • Payroll & financial data at your fingertips
  • Payroll expenses update automatically in QuickBooks—so no "double entry"
  • Shared liability
  • Saves time
  • One time learning curve for accounting software
Accounting & Payroll Solutions
Accountant
Your accountant helps with payroll & payroll tax filings.
  • Payroll delegated to someone else
  • Tax responsibilities handled
  • Accountant knows your business
  • Minimal or no control
  • Greater expense
Find an Accountant
Full Service Payroll
Traditional payroll service with a payroll representative helping you with payroll and tax responsibilities.
  • Tax penalties covered (most vendors)
  • Direct access to your account (with Intuit & some vendors)
  • Saves time
  • Handles all deposits & filings
  • Depending on vendor,
    you may give up control (but not with Intuit Full Service)
  • Slightly higher cost
Full Service Payroll

FREE Hiring Guide

Get valuable, easy-to-access
advice on hiring, training &
keeping great employees.

Download Guide


FREE Paycheck Calculator

You enter your employee's pay information. Paycheck Calculator does the rest.

Try it here


Tax forms & Info

Access the official Federal and
state forms for your business and
your state.

Get everything here