As a company that is new to hiring employees, the payroll process can seem like some tricky business. From paying employees to handling taxes, properly setting up payroll is not something to take lightly. If you don’t appropriately deal with payroll, you could open yourself up to financial and legal issues. There are some resources out there like local payroll companies to help you navigate this process. As the video “How Do I Pay Employer Payroll Taxes? - Employer Payroll Taxes: Simplified!” shares, you’ll want to go through setting up payroll as a step-by-step process.
First, you should know how to fill out and file a W-9 form for new hires. Then, you can move on to deciding what your pay period will look like for employees. If you set up direct deposit, it should hit employees' accounts within 1-4 business days. This is a convenient option that will make your employees happy that they don’t have to find somewhere to cash or deposit a check. Once the fiscal year is over, it’s time to send out W-2 forms to employees so they can report their earnings to the IRS and file their tax returns. While withholding taxes, make sure that you never borrow from those funds so you don’t encounter large fines and other devastating consequences.