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How to set up a payroll process: 10 steps

Insperity

Not only do you have to figure out the proper way to pay your people, you have to withhold the appropriate taxes, deposit them and report them to the government. Also, there are some states and local governments that require separate ID numbers in order to process taxes. Calculate payroll, and don’t forget deductions.

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Pay Up! 10 Steps to Establishing a Payroll Process (Part 2)

Insperity

Once gross pay is calculated for each employee, subtract the federal withholding based on their W-4 Form, then state and local taxes (if applicable), then Social Security and Medicare taxes. These government-mandated deductions, if you don’t comply with them, can result in costly penalties.

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