How to Do Your Payroll for Free
The goal of payroll is to ensure employees are paid accurately and on time. In addition, payroll pays employer and employee taxes to government. The speed and efficiency with which you process your payroll depends on the system you use.
You may use a computerized system, which requires you to purchase payroll software, but it costs money. If your business is small or if you are on a tight budget, you can process your payroll at no cost.
Instructions
-
-
1
Start with a free trial. The free trial gives you free use of payroll solutions for a limited time. Thereafter, you must purchase the service if you want to continue using it. Payroll solutions companies, such as PenSoft, include check printing, direct deposit and tax calculation features. Other solutions companies, such as Intuit, allow you to process your payroll online, including W-2 printing, direct deposit and check printing.
-
2
Use a manual payroll system. This is recommended only if you have a small payroll, such as fewer than 10 employees. If not done carefully, errors can be high. Still, if you're careful, you can process your payroll manually and successfully. You'll save the expense of hiring a payroll staff or using a payroll service provider.
Use IRS Publication 15 to determine withholding tax amounts. Print your paychecks on a typewriter or use hand-written checks. You'll need a solid understanding of payroll procedures and related tax laws when using this system.
-
-
3
Use free check-printing software, such as ezCheckPrinting. If you apply the manual system but use free check-printing software to print your paychecks, you'll reduce typing errors on the actual paychecks.
-
1
Tips & Warnings
Before signing up for the free trial, inquire about the cancellation terms in case you wish to discontinue the service.
Some payroll service providers will offer to process your first payroll for free in order to gain your business.
References
Resources
- Photo Credit check in macro image by Alexey Klementiev from Fotolia.com