how to not send paychecks quickbooks payroll service

What you need to do before you start running payroll Doing manual payroll isn’t the most straightforward task, but armed with the right knowledge, time, and a sturdy calculator, you can do payroll for your small business yourself. If you don’t have extra funds to spend on a payroll service, the DIY approach can save you some cash. Payroll software, accountants, and bookkeepers all charge a service fee. The only free payroll processing solution is to do payroll by hand. So, it’s important to understand the differences between employees and independent contractors, classify your team accordingly, and make sure that any workers that fall under the “employee” umbrella are included in your payroll. Some employers try to get around paying payroll taxes by misclassifying employees as independent contractors-but this can lead to serious issues with the IRS, including fines, penalties…even jail time. So, if you employ contractors, you don’t need to run payroll or withhold anything from their checks instead, you would issue them a check for their full hourly or project rate-and, from there, they would handle calculating how much tax they owe and paying those taxes to the proper authorities.

Independent contractors are responsible for paying their own taxes. You’ll need to withhold all relevant local, state, and federal income and payroll taxes from your employees’ paychecks. So, the question is, who needs to be on your payroll?Īs an employer, you’re legally required to include all employees on your payroll, whether they’re designated as full-time or part-time, exempt or nonexempt.

Determining who should be on your payrollįirst things first-before we jump into how to run payroll yourself, let’s quickly cover who you need to run payroll for.Īs an employer, you may employ a variety of workers, both employees and contractors for example, you may hire full-time and part-time workers for steady, long-term employment-and bring in independent contractors for more project-based work.

How to not send paychecks quickbooks payroll service