How to Start a Payroll Accounting Business
A payroll accounting business can be lucrative as you manage and balance accounts for small- and medium-sized businesses. Businesses need your help in managing their staffs' payroll records; federal, state, tax, health and Social Security deductions; transactions; accounting documents; and audit files. There's always work to do. As a payroll accountant, you are not required to have a bachelor's degree, but you should have knowledge and experience in processing payroll.
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Things You'll Need
- Computer
- Printer
- Fax machine
- Business phone
- Payroll software
- Ink cartridge
- Check stubs
- Legends
- Business cards
Instructions
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1
Obtain training or experience in payroll, including federal, state and local tax laws; paycheck calculations; preparation of ledgers and journals; W-2, W-3 and 941 forms; benefits taxes; internal payroll audits; and financial statements.
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Acquire a business license through your city or state for your payroll business. A certified payroll license is not required, but you will need to check what your state requirements are. Check with your city or state office on any required documents you would need to file.
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Have between $200 to $2,000 in capital to start your payroll business and cover your supplies and expenses.
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Purchase a computer, printer, fax machine, business phone line, payroll software (e.g., QuickBooks and Peachtree), ink cartridge, check stubs, legends and business cards for your business.
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Be aware of the taxing authority, where to send your payroll information and what each state's requirement is for payroll.
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Market your payroll business through word of mouth and referrals. Advertise your business through blogs and online ads to help generate additional business.
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Acquire additional training in accounting and payroll; keep up to date on trainings and certifications (e.g., Certified Payroll Professional "CPP" and Fundamental Payroll Certification "FPC") for continued success as a payroll business owner.
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