Payroll tips for small business owners

Q: Is guided help available?

Absolutely. An expert will review your payroll setup with QuickBooks Online Payroll Premium. And an expert will do your setup for you with QuickBooks Payroll Elite.** **Features Expert review: Available upon request for QuickBooks Online Payroll Premium and Elite. Customized setup: Available to QuickBooks Online Payroll Elite users only

Q: How do I know if my employees should get a 1099 or a W-2?

Each employee’s job role and responsibilities can help you determine if they get a 1099 or a W-2 . Understanding the difference between each form can help you classify workers accurately.

Q: I'm switching from another payroll provider. Can I transfer my data?

Yes. Even if you’re coming from another payroll provider, we can help you transfer any existing payroll information.

Q: Where does the role of payroll generally sit in the organization?

Traditionally, the role falls on accounts payable or human resources, depending on the business’s size. In some cases, the HR department enters employee information and finance or accounts payable runs the numbers and pays workers.

Q: Who typically manages payroll in a small business?

The business owner or office manager may be responsible for running payroll. As the business scales, the responsibility may move from the business owner to an accountant or HR personnel.

Hiring your first employee is a big accomplishment. And learning to run payroll is no small feat. So we designed a collection of articles, videos, and tools to help you hire employees and learn payroll fast.

Hiring employees

New to hiring? Check out these resources to help you hire the right way, the first time.

Learn everything you need to know about hiring your first employee.
Learn how to create an employee handbook. This resource can help you decide what to include.
Check out our ebook to learn how to manage your staff.

Understanding payroll

Now that you know a thing or two about hiring, it’s time to learn payroll. Let’s start with the basics:

Learn how to calculate payroll, including gross wages, taxes, and benefits.
Learn how to set up your first payroll, including determining pay schedules and deductions.
Learn more about employee pay stubs.

Business owner running payroll on a laptop.

State payroll resources

Many states have unique payroll laws. Here are some resources for learning the rules in your state:

The Department of Labor (DOL) lists each state’s payday requirements.
The National Conference of State Legislatures outlines the penalties for violating state labor laws, including those related to payroll.
This QuickBooks tool can help you determine which payroll taxes are paid in each state and contact relevant state departments.

Federal payroll and hiring resources

A few federal laws and resources to keep in mind:

The Fair Labor Standards Act (FLSA) sets the nation’s minimum wage and labor law requirements.
The Equal Employment Opportunities Commission (EEOC) requires employers to keep payroll records showing equal pay for equal work.
The (SBA) has payroll resources and loan programs for eligible businesses struggling due to the coronavirus.

Find payroll resources that are right for you

IRS resources

If you’re hiring contractors or employees, you’ll need to understand what makes them different and how employment taxes work.

Learn more

Free paycheck calculator

Calculate paychecks for hourly or salaried employees. You’ll get an accurate picture of their gross pay (including overtime, commissions, bonuses, and more).

Try it now