Starting my small business without using an accountant for payroll?
I want to start my own small business being that I will have to spend on insurances and advertising, I want to cut some costs like using an accountant for payroll. I don’t understand the taxes fully of taking on employees. I am doing some research but please tell me how can I do my own payroll. Thanks in advance.
It is much cheaper for a small business to use a payroll service (which will accomodate a schedule of your choice) than to risk making an easy mistake and paying the hefty penalites assessed by the IRS and your state. Besides that, it is hard for small business owners to know and keep track of all the legalities that go along with payroll, i.e. child support, garnishments, federal levies, pre-tax deductions, over-time payments, etc. You would be surprised at how inexpensive it will be to have someone else to take all the worry away. Please research any local payroll services near you. I work for a small payroll service and our prices are very competitive in our area and each business is designated one person that they deal with every time.
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Search for employer tax withholding tables online. Or you can try Quickbooks (I forget if they have the tax tables) or go to a third party online service which calcualtes this for you such as paycycle.com
The IRS also has tax withholding tables available online and you will need state tables and possibly city tables as well. Contact your state tax agency for details.
References :
Don’t
The liability you eliminate by having a payroll service do your payroll is well worth the money.
Costco & Sams Club both have inexpensive programs.
Bank of America has free payroll service if you have a business account (I have never read the fine print).
References :
HR consultant
It is much cheaper for a small business to use a payroll service (which will accomodate a schedule of your choice) than to risk making an easy mistake and paying the hefty penalites assessed by the IRS and your state. Besides that, it is hard for small business owners to know and keep track of all the legalities that go along with payroll, i.e. child support, garnishments, federal levies, pre-tax deductions, over-time payments, etc. You would be surprised at how inexpensive it will be to have someone else to take all the worry away. Please research any local payroll services near you. I work for a small payroll service and our prices are very competitive in our area and each business is designated one person that they deal with every time.
References :
Payroll Analyst