Checklist
How to Do Payroll for Small Businesses: A Step-by-Step Checklist
Global payroll
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What’s inside?
Our step-by-step payroll checklist walks you through:
- How to run payroll efficiently
- Setting up a payroll system and determining pay periods
- Collecting and verifying employee information
- Managing federal income tax, state and local tax, and other deductions
- Calculating social security and Medicare taxes
- Handling tax payments to the IRS
- How to file payroll taxes accurately
- Choosing between payroll software or processing payroll manually
- Automating payroll for efficiency
- Ensuring accurate payroll records and compliance
Running payroll for a small business can be complex, but it doesn’t have to be. Whether you’re learning how to do payroll for the first time or looking to streamline your payroll processing, having a clear system in place helps ensure compliance and accuracy.
Download our free Small Business Payroll Checklist to simplify payroll management, reduce errors, and stay compliant with tax regulations.
Who is this checklist for?
- Small business owners managing payroll manually
- Payroll managers looking to optimize payroll processing
- Junior payroll associates who need a structured payroll system
Why you need this payroll checklist
Without a structured payroll process, small businesses risk costly compliance mistakes. Our checklist provides:
- A simple, step-by-step payroll guide
- Compliance tips to file payroll taxes correctly
- Payroll best practices to reduce admin time
- Guidance on using payroll services for efficiency
FAQs
How do you do your own small business payroll?
To do payroll manually, you need to obtain an employer identification number (EIN), determine pay periods, collect employee information, calculate federal income tax, state and local tax, and withhold social security and Medicare taxes. You’ll also need to deposit tax payments to the IRS and file payroll taxes accurately.
What is the best way to pay employees in a small business?
The best approach depends on your payroll needs. You can process payroll manually, use payroll software, or outsource to payroll services. Automating payroll helps reduce errors and ensures timely payments.
Learn more: 7 Best Payroll Software for Small Businesses: Comparisons and Reviews
Can a business owner do their own payroll?
Yes. A business owner can manage payroll independently, but they must ensure compliance with federal income tax, state and local tax, and labor laws. Using payroll software can simplify tax calculations and filings.
Should I put myself on payroll as a business owner?
If your business is structured as an S-Corp or C-Corp, you may need to put yourself on payroll and withhold social security and Medicare taxes. Consult a tax professional to ensure compliance.
How do most small business owners pay themselves?
Small business owners typically pay themselves through an owner’s draw or salary, depending on their business structure. Paying through payroll ensures compliance with tax filing requirements.
Learn more: Startup Founder Salary: How to Pay Yourself as a Startup CEO
Does Deel offer small business payroll?
Yes! Deel is an all-in-one platform that provides global payroll services, US payroll, PEO, EOR, and contractor management services, helping small businesses automate payroll, comply with international tax laws, and pay workers in multiple currencies. With Deel, you can simplify payroll processing, tax compliance, payroll records management, and more.
