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How do you run the payroll?

Basic Payroll Steps Sign up for an Employer Identification Number. In short, this is the number the IRS uses to identify your business. ... Request that each employee complete Form W-4. ... Settle on a payroll schedule. ... Calculate and withhold the proper amount of taxes. ... Pay taxes.

What forms are needed to set up payroll?

Form W-4, Employee's Withholding Certificate. Form W-2, Wage and Tax Statement. Form W-9, Request for Taxpayer Identification Number and Certification (for independent contractors) Form 941, Employer's Quarterly Federal Tax Return.

What reports are needed it from payroll?

What payroll reports do employers need to file? Wages paid to employees. Federal income tax withheld from employee wages. Medicare and Social Security taxes deducted from employee wages. Employer contributions to Medicare and Social Security taxes.

What 4 Things are employers payroll systems required to do?

Pay periods and paydays. One of the first decisions you have to make is your pay schedule, which is essentially when your employees are paid for certain days of work. ... Collecting employee and employer taxes. On to the fun part (we kid): taxes. ... Paying and filing taxes. ... Federal, state, and local laws. ... Timekeeping.

What employee information is needed for payroll?

The DOL requires you to track employee payroll information like weekly hours worked, wages and earned overtime. You need this information in case you're audited by the DOL, as it demonstrates that you're following labor laws. You can look up your state's labor requirements through the DOL.

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