Creating a paystub or preparing hundreds of paychecks isn’t a big deal. A firm has many alternatives to do so. We can also say that a company or an individual can handle payroll making by themselves too.
No matter if you’re a startup or into business for a few years, we’re sharing a quick guide on payroll making that’ll help you out. Please find that this blog is for informational purposes only.
Payroll isn’t limited to employee’s net pay. Some critical calculations are to be done & you have to be specific regarding deductions from gross pay. Additionally, the bonus is also added to the gross pay. Payroll is a sensitive issue to be handled tactfully.
Whether you’re creating it for the waged employee or a salaried employee, it needs to be precise. You should be well aware of the deductions to be made as they’re to be reported to the IRS by the firm later.
We recommend using checkpaystub.com to create a paystub if you don’t want to perform manual calculations.
Why do you need a payroll system?
Can you even manage running a firm without a systematic payroll system? NO! You’ll need a well-set payroll system that eases the job of payroll making. And you’re only left with the responsibility of
delivering paychecks on time.
However, the necessity of a payroll system does not end here. Though some states don’t require employers to issue payrolls, it is in their favor if employers prepare & share paychecks.
Giving timely payroll helps employees to avail themselves credit facilities, get home on rent, etc as they have proof of income. Similarly, it gets easier for employers to track revenues as they have month-wise
records of income & expenses made on salary.
6 Steps on How to Do Payroll
Let’s proceed to learn how to do payroll in six easy steps. Here you go!
1. Let your employees complete the W-4 Form
Make it mandatory for your employees to fill W-4 Form for you to keep a track of their filing status & personal allowances. The more dependent workers or allowances they have, the fewer payroll tax
deductions are made per pay period. Practice creating a hire report whenever an employee is hired.
Also, make sure that you have the updated version of the W-4 Form.
2. Sign-up for EIN
Keep your Employer Identification Number ready before attempting payroll creation. IRS uses EIN for identifying business entities, just like SSN. Don’t worry if you don’t have one right now. You can apply for
the same easily.
3. Define your payroll schedule
Once your EIN is ready, get insurance & have workplace posters on display, three important dates must be considered for your payroll schedule. They mainly include Employee pay dates, tax payment due
dates, and tax filing deadlines. This will help you to be on time for payroll.
4. Calculate tax deductions accurately
Employers have to determine the federal & state tax amounts to withhold from the employee’s pay. If you’re not sure what you should deduct, you may use IRS Withholding Calculator. You may also use a
paystub generator that’ll calculate paystubs with state-wise tax deductions automatically.
5. Share paychecks timely
Once your paychecks or pay stubs are ready, make sure your employees get them after each pay period.
6. File W-2 & Tax forms for employees
As an employer, you’ll also have to file Employer Federal Tax Return plus any local or state returns. Additionally, you’ll have to process annual tax returns & distribute W-2 Forms to the employees so that
they can file their taxes on time.
How to Create Your Payroll System?
Setting up a payroll system is very easy. All you need is to decide whether you’ll go for a DIY approach with an online pay stub maker, outsource payroll making, or hire an in-house accountant. Either way,
you’ll be having your payroll system. Assess each of them & determine which of the processes will be suitable as per your budget & needs. You may proceed with it thereafter.
How to process payroll yourself?
DIY payroll processing is for the win! You don’t even need to purchase expensive payroll software. But, get the job done with the online paystub creator itself.
Use checkpaystub.com & create a pay stub in a few minutes only. You’ll only have to enter the basic details of the employee & the employer. Add gross pay & you’ll have deductions, YTD amounts, and Net Pay ready in no time.
You’ll cherish many benefits with us as you can make as many pay stubs as you want in one go. Just pay the nominal charges & the payroll is all yours. It will be dispatched to your Email ID instantly. You can
then download & use it as desired.
What do you think about this?
Create your stub now