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5. Calculate Gross Pay For Your Employees To begin processing payroll, you’ll need to calculate your employee’s gross pay for the pay period according to yourpayroll schedule. An employee’s gross pay is the total of all their earnings before any payroll taxes are withheld or deductions mad...
5. Calculate net pay After you calculate gross pay, withhold payroll taxes, and determine deductions, you can calculate your employees’ net pay. An employee’s net pay is how much they take home after taxes and deductions. To find net pay, simply deduct taxes and deductions from the empl...
You have to pay taxes quarterly instead of with each paycheck as a W-2 employee would. Keep reading to learn answers to questions like, "Who has to pay quarterly taxes?" "When are quarterly taxes due?" and "How do I pay quarterly taxes?" Who is required to file quarterly taxes? If...
Hub Taxes How to Calculate Withholding Tax (4 Easy Steps) March 26, 2025Small businesses need to understand how to calculate federal income tax withholding to withhold the correct amount of federal taxes from their employee paychecks. Employers report and pay these taxes to the U.S. Treasury ...
Figuring when and how to pay If you're an employee, your employer typically withholds taxes from every paycheck and sends the money to the IRS, and probably to your state government as well. This way you pay your income taxes as you go. And, if you're like most wage earne...
Understanding the proper way to calculate these payroll accruals can ensure that your monthly reporting and ledger are accurate.Accrue Employee Payroll 1. Calculate Total Hours Worked Calculate the total number of hours that each hourly-rate employee has worked since the last payroll cycle. Multiply ...
What are the different types of bonus pay? Types of bonus pay for small business owners fall into five categories: Discretionary bonuses A discretionary bonus is a special type of bonus pay given by an employer to an employee as a reward for exceptional performance or contributions. Unlike reg...
4 Benefits of Filing Taxes Early One of the biggest reasons to file as soon as possible is to avoid tax fraud. Maryalene LaPonsieMarch 18, 2025 What to Do if You Can't Pay Your Taxes As long as you make some sort of effort to report and pay your taxes, you're not likely to get...
How To Calculate Payroll Taxes Now that you understand the different types of taxes required to be paid, we’ll explain how to calculate payroll taxes manually. Step 1: Gather All Required Employee Documents Before you can start calculating payroll taxes for your employees, you’ll need to obta...