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Doing Payroll

April 13, 2006

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Once you've decided how much to pay employees and you know what your obligations are under federal and state wage and hour laws, you're ready to begin doing payroll.

But doing payroll doesn't mean just writing out a check every week or two. There are other considerations, including some state law, that you'll have to deal with in paying your employees. The basic steps in doing payroll include:

• setting up your payroll system correctly
• calculating hours worked by an employee in a workweek
• determining your employees' regular rate of pay
• making deductions from wages
• getting the money into the employees' hands
• paying employees who leave your business

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