Setting up payroll
The most important aspect of ensuring an accurate payroll is to set up the payroll properly before you run your first payroll. Setting up a payroll involves gathering information about your employees, such as their names, mailing addresses, and social security numbers. As an employer, you will need a federal tax ID number and a separate bank account for payroll checks and payroll taxes. You will need to determine what benefits you will offer employees, how often you will pay employees (for example, weekly, bi-weekly, or monthly), and the payment method you will use (for example, paper check or direct deposit).
In the following sections, we will provide you with a checklist of information you need to have handy to complete your employer profile and set up employees. However, we will not actually set up payroll in this chapter, because the details will vary depending on your business needs. First, we will show you how to set up payroll in QBO.