Category Processing payroll

Ten Steps to Setting Up a Payroll System for Your Small Business

Payroll solutions for small business

Whether you have one employee or 50, setting up a system for payroll for small companies streamlines your ability to stay on top of all of your legal and regulatory responsibilities as an employer. A payroll processing system can also save you time, and help protect you from incurring costly IRS penalties.

  1. Obtain an Employer Identification Number (EIN) - Get an EIN from the IRS before you hire any employees. This number is necessary for reporting taxes and other documents to the IRS.
  2. Check Whether You Need State/Local IDs - Some state/local governments require businesses to obtain ID numbers in order to process taxes.
  3. Know the Difference Between Independent Contractors and Employees - Be clear on the differ
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