Compared to ADP, Gusto is more affordable and caters to smaller businesses that are mostly concerned about paying their employees and complying with payroll tax laws. ADP on the other hand has a flexible platform that supports growing businesses with payroll and HR needs that may evolve in the near future. They both give you…
All Payroll Articles - Page 2
What Is Payroll?
Payroll is a process where the employer pays its workers, applicable tax agencies (including the IRS), and vendors that are under contract to provide employee benefits. In some cases, such as a court garnishment order, it even includes withholding money to pay an employee’s creditors. Handling payroll the right way is important. Employers must perform…
6 Best Free Payroll Software 2020
Free payroll software calculates paycheck amounts and helps track employee deductions like workers’ compensation, insurance, and taxes. Some software options offer features like direct deposit but most lack tax filing and state compliance. They’re good starter options if you have a few employees; you can always upgrade to a paid alternative as your business grows….
Best Payroll Apps 2020
The best payroll apps make it easy for employers on the go to manage payroll when they’re out of the office. When evaluating apps, our primary focus was on cost (service cost; most apps are free), ease of use, and depth of payroll processing features. Some apps may cost less money to use but won’t…
Gusto vs Quickbooks Payroll: Who’s Best for Payroll 2020
Gusto and QuickBooks Payroll are both affordable software options for small business owners who want to access their payroll from anywhere. QuickBooks Payroll is best for small businesses that want to offer health insurance to employees and even better for those using QuickBooks accounting software. Gusto is an all-in-one solution that’s best for new small…
1099 vs W2 Employees – Which is Better?
When it comes to hiring new workers, business owners can choose between independent contractors and employees. Contractors have more independence in how they conduct their work but aren’t protected by labor laws, such as minimum wage. They also receive different tax forms (1099 vs W2) to report their earnings to the IRS because employers don’t…
Payroll Records: What to Keep & How Long to Keep Them
Payroll records are documents with any information about a company’s payroll, including data about employees, paychecks, and taxes. Per federal law, you should retain payroll records for three years and payroll tax records, such as unemployment taxes, need to be kept for four years. States such as New York, and agencies such as ERISA (governing…
How to Calculate Payroll For Employees
Before hiring employees, spend time learning how to calculate payroll for your business. It’ll save you time from having to correct errors and thousands of dollars in penalties; you might even experience lower turnover by eliminating paycheck frustrations. You can perform calculations manually (hours worked X pay rate), using an online calculator, or with software….
2020 Payroll Tax Rates [+ State Tax Map]
Federal payroll tax rates like income tax, Social Security (6.2% each for both employer and employee), and Medicare (1.45% each) are set by the IRS. However, each state specifies its own rates for income, unemployment, and other taxes. Below is a state-by-state map showing tax rates, including supplemental taxes and workers’ compensation. All of QuickBooks…
21 Payroll Terms Every Employer Should Know
When you’re new to payroll, the lingo can sometimes leave you confused. It’s important to invest some time into learning the most commonly used payroll terminology, so you don’t make any weird (and potentially costly) mistakes such as assuming we know what minimum wage is exactly and how it’s defined. The top 21 payroll terms…
How to Do Payroll in Excel in 7 Steps [+ Free Template]
Doing payroll in Excel is best for businesses that need to pay 10 or fewer employees and operate in states without complex labor and tax laws. To save time, use our payroll Excel template with pre-filled information like tax rates and overtime formulas. Automation helps streamline payroll, whether you use a template or payroll provider….
Post-Tax vs Pre-Tax Deductions: What Employers Should Know
The primary difference between post- and pre-tax deductions is the time at which employees are required to pay taxes on them. Pre-tax deductions, like some retirement contributions and insurance premiums, are amounts you subtract from the employee’s earnings before computing taxes, driving the tax bill down for both you and your employees. Post-tax deductions are…