So, if your small business has more than 1 employee, it’s necessary to have a payroll system in place to remain in compliance with various payroll regulations. A lot of small businesses now days outsource their payroll. Outsourcing means that they hire a separate company to prepare their payroll.
Employee Time and Wages
Having an efficient small business payroll system will calculate your employee time worked, employee wages/salaries and vacation/holiday time. QuickBooks offers additional information on payroll and a free 30 day payroll trial offer that we highly recommend. A lot of new business owners ask themselves what is payroll for small business & self employed now that I’m my own boss and am a business owner. The payroll system calculates employee gross income taking out taxes and additional withholding amounts each pay-period and submits in a timely manner to the governmental agencies.
What are Payroll Taxes & Withholding’s
Your payroll system will also calculate your tax obligations both on a Federal, State and local level. A payroll system will input employee information onto the necessary tax forms, such as the IRS W4 Form and will produce employee W-2s at the end of the year.
Payroll Tutorial Video:
Payroll Reporting to Governmental Agencies
Its critical to have a payroll system in place that ensure you will not be hit with penalties from the Government, as the penalties usually outweigh the cost of the payroll system. The free trial QuickBooks payroll program will also process deductions for employees such as employee garnishments and employee voluntary deductions, such as retirement accounts if needed. On top of the penalties, you will likely incur interest due on the funds you owe.
A good payroll program will automatically report all of your payroll information to the Government on all due dates. You can find various free payroll trial offers out there, such as the free small business payroll trial with Quickbooks that is one of the most popular payroll systems used today.