4 Ways to Do Payroll Yourself For Your Small Business
You may want to ask how to do payroll yourself for your small business. There are several ways to do payroll for your small business, from spreadsheet software to a cloud-based payroll service. A DIY payroll is a viable option for the most straightforward payroll process. However, as your business grows, this method becomes less practical. Here are a few ways to get started:
Using Spreadsheet Software
If you’re the boss and are adamant about keeping payroll costs low, you might wonder if you should use spreadsheet software to do payroll for your small business. There are several benefits to using spreadsheet software to do payroll for your small business. For one thing, you can use it to track payroll taxes and maintain payroll records electronically. Another advantage is that it’s completely free. There are plenty of free programs available on the market. However, if you’re a small business owner with only a few employees, it’s probably best to use a software solution that offers complete service payroll and automated tax and forms.
Using spreadsheet software to do payroll for your smaller business allows you to enter employee information into the spreadsheet, such as their name, age, and several employees. You can also enter other information, such as hours worked, vacation, and sick time. You can also enter overtime wages or additional information, automatically calculating each employee’s net pay. The spreadsheet will even allow you to create individual pay stubs for each employee, which will help you keep track of pay periods.
Using Cloud Payroll Software
There are many benefits to using a cloud-based payroll system for your small business. These programs automate payroll functions, such as processing employee hours, deductions, and syncing staff hours. They also save business owners time, which they can use to run the business. In addition to helping your business save time, these solutions reduce errors. Automated processing eliminates human error. Human error is a common factor in payroll processing, so using payroll software will help you to cut down on errors and maximize your time. With payroll software, you will no longer have to worry about missed deadlines and errors, and your accounting staff will be able to focus on other aspects of your business. And you’ll be able to keep on top of compliance requirements.
Doing Payroll by Hand
When you do payroll by hand for your small business, you must consider the FLSA’s minimum pay law. In Arizona, for example, you cannot go more than 16 days without paying employees. To calculate your employee’s wages, you must first log each employee’s hours worked. Then, calculate the amount each employee is due for overtime. In some states, tips count as hourly pay. Pay by hand takes longer than with payroll software, so ensure you allow enough time for each step.
Performing payroll by hand takes time, and it involves complicated processes. Small businesses without enough staff may not find this method suitable, but it is viable if you have no money to pay a payroll processor. However, it also has a higher error rate, so you should avoid doing payroll manually if possible. Manual payroll processing is also prone to mistakes and reporting mistakes, and the honor system can lead to inaccuracies and incorrect information.
Using Intuit Enhanced Payroll
Considering implementing a payroll system for your small business, you should know that Intuit has enhanced its payroll offerings. For example, small companies can quickly pay their employees by incorporating direct contractor deposits and same-day direct deposits. This means that payroll reconciliation will take just minutes instead of hours. And while the number of Intuit payroll complaints may be concerning, Intuit still has an A+ rating with the BBB.
With the Enhanced Payroll package, all payroll tax forms and the ability to file and pay taxes electronically are included. Assisted payroll is more affordable but requires you to complete payroll tax e-filing and filing yourself. You’ll also enjoy 24/7 priority support and access to a payroll specialist. However, Enhanced Payroll is more expensive, so you’ll want to ensure you have a large enough budget to spend on this payroll solution.