Do you understand how to manage payroll for your small business?
Running payroll wasn't the first thing that sprang to mind when you decided to go it alone as a small business owner.
You were probably preoccupied with starting a business you're enthusiastic about, finding the proper location, and doing other
non-payroll-related chores. However, payroll is a requirement, and getting it right is critical.
This post will show you how to calculate payroll correctly and will include payroll calculators to help you.
First, let's lay the groundwork and understand all that goes into calculating payroll, whether you're a
lone business paying yourself or need to operate payroll for many employees.
Federal taxes are those withdrawn from your salary that benefit the federal government.
These taxes are typically levied on government programs such as Medicare/Medicaid and Social Security.
Income, gift, estate, and employment taxes are also likely to be included.
State income taxes: Most states in the United States collect a state income tax on employees in addition to the federal
income tax.
• You should be aware of your state's income tax policies because some states have flat tax rates, others have graduated tax rates, and seven states have no income tax.
• A state, county, or municipality determines local taxes. These taxes are used for various civic services, such as rubbish collection and sewer repair. These taxes can vary greatly depending on the jurisdiction.
When it comes to payroll, two common questions we hear from business owners who try to handle payroll on their own are:
Payroll taxes are difficult to calculate since employers must account for federal, state, and local taxes when processing employee paychecks. Payroll is sadly not a "set it and forget it" chore because tax regulations are constantly changing and updated. You will better know what you should be doing while running payroll by using some of the calculators on this page.
Suppose you have queries from employees or need to anticipate the impact of federal taxes on the take-home pay for a specific position. Knowing how much money will be taken from an employee's paycheck might be valuable in that case. The withholding allowance selected on Form W4 determines how much money is withheld in taxes. Some people prefer to have more taxes withheld to obtain a tax refund rather than owing money on taxes, whilst others want to have more cash upfront and are more relaxed about receiving a refund or owing money. The IRS withholding calculator is another valuable tool for determining this.
While these calculators can be handy for calculating payroll on your own, there are also more options for people who prefer to conduct their payroll on their own. When you think about paying your staff, consider entering their hours or salary rate, paying them, and then calling it a day. Unfortunately, payroll isn't that straightforward. In addition to hours and pay rates, you must calculate and file FICA, state, and local taxes for yourself and your employees (if applicable). Furthermore, if your workers work and live in multiple states, you must be aware of state reciprocity requirements since you may be required to pay additional taxes.
While this is a short list, it is time-consuming because tax regulations change frequently. Suppose you keep up
with tax laws and rates and submit payroll. In that case, correctly, you may avoid paying employees back for
missing paychecks and, in the worst-case scenario, being audited and paying tax penalties.
We hope you find these calculators useful. If payroll takes too much time, we're here to help. When you choose SurePayroll to manage your small business payroll, you will receive the following benefits:
1. Automatic tax payment and filing of federal, state, and local taxes, backed by our taxes paid and filed guarantee.
2. There are no commitments or setup fees.
3. Access to our dedicated Customer Care team based in the United States
4. 4. Executing payroll from any location, including your smartphone.
Ready to delegate the complicated payroll process to someone else so you can focus on your business? Request a free quote immediately, or begin the sign-up process here.
• A Few Important Notes About These Payroll Calculators
• Current SurePayroll customers: These calculators are offered for estimation purposes only and will not affect your SurePayroll account information. If you want payroll data handled for an upcoming paycheck period, you must enter it directly into your SurePayroll account. Log in by clicking the "Sign In" button at the top of this page. Please get in touch with Customer Service if you have any particular payroll questions.
• The information provided is for reference purposes only and does not constitute tax or legal advice. Consult a competent tax, legal, or other expert to confirm this information and determine whether or not it applies to your specific circumstances. SurePayroll, Inc. and its subsidiaries accept no obligation and make no assurances about the information on these payroll calculator pages.