---
layout: default_v3
language: default
permalink:
i18n_link: 9777
updated: 2026-02-25
#--- article key-values ---#
collection: default_articles
category: hr-and-payroll
tags: Payroll
type: article
page_id: 9777
hreflang_id: 9777
date_published: 2026-01-21
date_modified: 2026-02-25
#--- javascript schema ---#
javascript_schema:
 - script: jquery_3_2_0_min
 - script: bootstrap_min
 - script: article_infinite_scroll
 - script: article_mix_infinitescroll
 - script: article_mix
 - script: article_mix_faq
 - script: article_mix_toc
#--- section schema ---#
section_schema:
 - section: nav-main_menu
 - section: nav_submenu_iconview_v2
 - section: article_body_v2
 - section: footer
 - section: schedule_demo_cta
#--- page key-values ---#
meta_tags:
  t_meta_title: How to Do Payroll Yourself as a Small Business Owner
  t_meta_description: How to Do Payroll Yourself with confidence by understanding payroll basics, tax responsibilities, and simple processes that help small business owners save time and money.
  t_meta_abstract: How to Do Payroll Yourself with confidence by understanding payroll basics, tax responsibilities, and simple processes that help small business owners save time and money.
  i_meta_image: og_how-to-do-payroll-yourself-as-a-small-business-owner.png
article_body:
  json-ld_article:
    v_date_published: 2026-01-21
    v_date_modified: 2026-02-25
  author:
    p_author_id: 159
    t_author: Staff Writer
    p_author_url: staff-writer.html
    i_author:
    t_author_description: Translator
    p_author_facebook: //www.facebook.com/HubWorksApp
    p_author_twitter: https://twitter.com/HubworksApp
    p_author_linkedin:
    p_author_instagram:
  podcast_section:
    v_links:
    podcast_links:
      - t_title: Iheart Radio
        v_url:
        i_icon: iheart_radio_icon.png
      - t_title: Amazon Music
        v_url:
        i_icon: amazon_music_icon.png
      - t_title: Youtube Music
        v_url:
        i_icon: youtube_music_icon.png
      - t_title: Spotify
        v_url:
        i_icon: spotify_icon.png
  feature_snippet:
    p_type: text
    t_title: What is How to Do Payroll Yourself ?
    t_description: How to Do Payroll Yourself explains the process small business owners use to calculate wages, handle taxes, ensure compliance, and pay employees accurately without external payroll services.
  content:
    heading:
      t_title: How to Do Payroll Yourself as a Small Business Owner
      t_description: How to Do Payroll Yourself with confidence by understanding payroll basics, tax responsibilities, and simple processes that help small business owners save time and money.
      image:
        i_image: how-to-do-payroll-yourself-1769019529-2569.png
        t_image_description:
        v_image_attribution:
        v_image_license:
      v_video:
    paragraphs:
      - t_headline:
        t_text: Small business owners are faced with a lot of responsibilities, especially in the early stages of their business. They must establish a regular source of revenue, streamline business operations, work with vendors and clients, and oversee the back-office functions of the company.<br>If the company has employees, they'll need to ensure that they pay their staff correctly and in a timely manner.<br>Learn how to attract &amp; hire the talent you need in this guide for small business owners &gt;&gt;<br>While payroll may be relatively easy to calculate for companies that just have a handful of employees who work and reside in the same location, it can become more difficult to manage when workers live in other states or work remotely. In this article, we'll discuss the best practices for handling payroll on your own.<br><br>
        p_headline_type: h2
        image:
          i_image:
          t_description:
          v_attribution:
          v_license:
        callout_text:
      - t_headline: Steps to Calculating Payroll
        t_text: There are a series of steps involved in handling payroll on your own.<ul><li><strong>Have an EIN</strong><br>An Employer Identification Number, or EIN, is the business equivalent of a Social Security number. It allows companies to identify your business for tax purposes. If you don't already have an EIN, you can apply for one easily via the IRS website.<br>The EIN allows the IRS to track your payments to employees and identify your business separately from you when you file your income tax return.</li><li><strong>Examine Your Employee's W-4 Information</strong><br>Form W-4 is used to determine your employee's tax filing status and record any dependents. These details are used to calculate the appropriate withholding amount for federal and state tax purposes on each paycheck.<br>In some cases, employees may ask that you withhold additional payments for the IRS from their paychecks.</li><li><strong>Pay Your Employees According to a Set Schedule</strong><br>Businesses commonly designate set payment schedules for their employees. These may be bi-weekly, weekly, monthly, or twice per month. The schedule you use should be designed to fit the cash flow needs of your business and your employees.<br>Once you set up a payment schedule, stick to it. Employees depend on their paychecks to meet their regular bills and financial commitments, so making sure you don't vary from the designated payment schedule can help build employee loyalty and fulfill your legal obligations.</li><li><strong>Calculate Employee Gross Wages</strong><br>Next, you'll want to calculate the gross wages for each employee during the payment period. Employees who follow an hourly schedule will likely have time cards that you can use to determine their wages for the period. Salaried employees are a bit easier, as their gross income should remain virtually the same for each pay period.<br>Paychecks for employees who work on a commission basis or earn bonuses are trickier. Using payroll software is often the best choice in these cases, as there are separate tax calculations involved when paying a bonus. Companies usually pay bonuses separately from other paychecks.<br>If your employee has used any vacation or sick days, you'll want to ensure that those are included in their gross wages.</li><li><strong>Calculate the Deduction for Taxes and Other Withholdings</strong><br>This is the most difficult part of calculating your payroll, especially if you are doing it on your own. For federal withholding guidelines, you can refer to the IRS website for proper withholding amounts.<br>For state guidelines on income tax withholding, you can refer to the IRS list of state government websites to determine appropriate withholding amounts.<br>Most employers offer benefits to their employees. These may include medical, dental, vision, or other types of paid benefits. If your employee is required to pay a partial cost for their benefits, you will need to deduct this on a pre-tax basis from their paycheck.<br>Other common deductions include retirement fund contributions, wage garnishments, or donations to charities.</li><li><strong>Pay Taxes for Employees</strong><br>The amount withheld from employees for tax purposes must be remitted to the state and federal governments. Typically, these must be paid quarterly, but in some states, monthly payments are required.<br>Review the IRS website and state government reporting requirements to determine the appropriate deadlines. If you miss making your tax payments on time, your company may be subjected to fines or penalties.</li><li><strong>Distribute Paychecks</strong><br>Most employers choose to handle their employee payroll needs through direct deposit. This method allows employers to automatically deposit each employee's paycheck to their bank account.<br>This method is much easier for both employers and employees, as there's no need for paper checks that require several days to clear and extra time to deposit in their accounts. If you do choose the paper route, you must distribute paychecks on the day that they are expected according to the payroll schedule.</li></ul>
        p_headline_type: h2
        image:
          i_image:
          t_description:
          v_attribution:
          v_license:
        callout_text:
        call_to_action:
          p_type: purchase
          t_title: Automate, Manage, Distribute
          t_text: Simplify Tip Process with Plum Payroll
          t_button_text: Request a Demo
          p_button_url: https://plumpayroll.com/schedule-demo.html?utm_source=plumpayroll.com%2F.html&utm_medium=cta&utm_campaign=Automate%2C+Manage%2C+Distribute&utm_term=How+to+Do+Payroll+Yourself&utm_article=42897
          p_button_color: 0000FF
          v_form_id:
          v_product: false
          background:
            type: image
            i_image: https://wp.altametrics.com/assets/images/cta/337-banner-jtbd.png
            p_video:
            p_color:
      - t_headline: Need Help with Payroll for Your Employees?
        t_text: Plum Payroll offers <a href="//symply.io/products/payroll">resources and products</a> designed to help your small business remain in compliance with federal and state payroll requirements. To find out more, sign up for our news and articles designed especially with small business owners in mind.<br><br>
        p_headline_type: h2
        image:
          i_image:
          t_description:
          v_attribution:
          v_license:
        callout_text:
event_body:
  json-ld_event:
    t_name: Employee Scheduling for Restaurant Managers
    t_description: Attendees will learn how create excellent schedules. The class teaches managers how to estimate the number of employees they need to staff their locations; how to accurately forecast their customer demand; how to quickly and accuaratly write and communicate schedules to employees; and how to evaluate the accuracy and optimization of their schedules to make adjustments.
    v_start_date: 2022-08-08
    i_image:
    p_location_name: Altametrics Online Webinar Course
    p_address: webinar.altametrics.com?site=altametrics
    v_price: 10.00
    t_offer_description: Priority Registration
    v_registration_url: webinar.altametrics.com?site=altametrics
---