5 Easy steps to managing your payroll, using QuickBooks’ payroll systems
As an employer, it is your responsibility to make sure that your staff members are paid their salaries accurately at the end of each month. Many companies outsource the paying of their staff, but with QuickBooks Payroll System you can do it in-house, saving unnecessary expenditure.
An in-house payroll system is relatively easy to implement for small companies, and can be applied in 5 easy steps:
- Before you start your payroll system, you need to know what your employer ID number (EIN) is. If you don’t already know what it is, you can find out by visiting the IRS website, where you will be guided through the process of acquiring your EIN.
- Find out what you are required by law to deduct from your employees’ salaries each month, so that you know that you are doing everything by the book.
- Decide on how much your staff members are going to earn and how you will be paying them. Different categories include salary wages, hourly wages, commissions and bonuses, amongst others. It is best to set these up at the same time as the rest of your company information, though it can be done at any stage.
- Accounts need to be opened, into which deductions from your employee’s wages, such as taxes, must be paid. It is also wise to create a payroll schedule to make sure that all payments are made correctly and on time.
- Create a secure folder in which to store detailed accounts of each employee’s payment records, including documentation illustrating calculations of all payments and deductions. It is essential that these records are complete and accurate for auditing purposes.
Using the payroll system feature on QuickBooks makes paying your staff easy and hassle free. Take a look at the extensive payroll checklist and QuickBooks payroll tips for more information.