This guide explains why payroll is a critical business function that goes far beyond issuing paychecks, affecting employee trust, legal compliance, and financial stability. It walks small business owners through payroll fundamentals, from collecting employee information and setting pay schedules to choosing payment methods and building clear payroll policies. The article outlines a practical 10-step payroll process covering time tracking, pay calculations, tax withholdings, deductions, payments, and recordkeeping, while highlighting common pitfalls such as misclassification, missed deadlines, security risks, and manual errors. It compares manual payroll, software, and full-service providers, concluding that payroll software offers the best balance for most businesses by reducing risk, saving time, and ensuring long-term compliance and growth.

Join for free to read