How to set up payroll for the first time part 2
Now you’re ready to actually begin
Congratulations, you’ve made it this far! If you have all the information needed, you can start the payroll process. These next steps will guide you through the rest.
Step 5: Determine your payroll period
Payday is every employee’s favorite day! Decide which day payday should be and how often they should get paid is up to you. Here are a few things to consider when choosing the right payroll schedule:
- Does your state have requirements? Check this list of federal and state payroll resources to see if there are any restrictions about when or how you can run payroll.
- When is the best time for you? Figuring out cash flow can be tricky for many small businesses. Payroll is often the largest expense. Consider asking yourself if there is a time period when it’s most convenient
- What do employees need & expect? Payroll is all about taking care of your team. It’s an energy and value exchange. They work for you on energy credit and often wait a few weeks before compensation. Try to be mindful of their own cash-flow needs and what
they prefer also.
Now that you’ve decided when your pay period will be, we recommend being transparent with your employees so they can properly plan their finances.
Step 6: Pick a payroll system (preferably ours)
Long and gone are the days of paper & pen for payroll purposes. Using an online service like ours will help save you time and money.
Do your due diligence and research your options to find a solution that resonates with your company’s values. Once you’ve done that, you can focus on the business side of calculating payroll. Most business owners have reported that they step up to five hours a month working on payroll.
Keep in mind that your payroll provider should be easy to use and designed to grow alongside your business. It should also fit within your budget and not cost you an arm and a leg.
Step 7: Pay your people
Now that you have things under wraps like deciding your pay periods, you can now begin actually paying people!
Take a moment and let the feeling of pride and excitement wash through you. It’s amazing to know that you are part of the solution; it’s nice to feel good about stimulating our economy while growing your business.
This is also the best time to share important dates and details about your payroll process with those you’re looking to employee. Having a modern payroll process takes the guesswork and uncertainty around such an important factor like payroll. So be sure to clearly communicate how they can expect to be paid (check VS direct deposit) and how often they’ll be paid. Your employees will thank you for your transparency.
Congratulations, your next step will be cutting paychecks!