Can I Do Payroll Myself for My Small Business?

The Milestone Team November 16, 2022
Can I do payroll myself for my small business

Yes, you can run your own small business payroll, but it is not always the best idea.

Running payroll without services can save you a few hundred dollars today, but it could cost you in the long run. In order to save money, many small business owners do payroll manually rather than using payroll software or services. But this can lead to tax penalties and other issues, which can be costly. 

If you are wondering how to do your payroll on your own, the simple answer is that you probably shouldn’t. You can’t simply write a few checks every two weeks on your own. You have to make sure you are withholding federal, state, and local taxes, sending these payments to the IRS and your state, and filing your tax forms on time. And this is just the start of the process. Outsourcing this process to experts can ensure you don’t make mistakes that can lead to costly issues. It also frees up your time to work on other areas of your business.

One of your most important responsibilities as a small business owner is making sure payroll is on track. In addition to enhancing employee satisfaction, accurate payroll keeps you in compliance. As a small business grows, payroll can quickly become complex, so outsourcing your small business payroll services to experts is a simple way to give your business a competitive edge.

Is there a free payroll service?

Unless you do payroll manually, there is no free payroll processing solution. Payroll software and payroll services all charge a fee. 

The term “manual payroll” refers to the process of paying employees without the use of software or services. Deductions and benefits must be calculated and remitted manually by the small business owner, and the employees’ net pay must be calculated and remitted.

The do-it-yourself approach can save you money if you do not have the funds to hire a payroll service. You can do payroll for your small business yourself if you have the right knowledge, time, and a sturdy calculator. While this is not the recommended option, it still is an option. 

When it comes to manual payroll, there are three main phases: run payroll, pay payroll taxes and file quarterly and annual tax forms. You can do your company’s payroll on your own for less money, but it is time-consuming and prone to error.

What is the cheapest payroll service?

The cheapest payroll service is Wave. It is the best software in the market right now at its price point. The price breakdown is $35 monthly & $6 per active employee. It includes:

  • Direct deposit, T4s, and full tax remittances.
  • Guaranteed to receive accurate results.
  • An easy-to-follow step-by-step guide to help you set it up.
  • Easily accessible forms and documents.

Despite this, cheap payroll software carries significant risks. Generally, you get what you pay for when it comes to compliance. Payroll plays a crucial role in business decision-making and compliance. Long-term small business services are worth investing in. If affordability is a concern, Gusto – our simple small business recommendation – provides inexpensive starter tiers for small businesses.

What are the top payroll companies?

The top payroll companies recommended by Milestone include Gusto and Rippling.

Gusto integrates payroll, benefits, hiring, management resources, and more seamlessly. With Gusto, your team will become empowered with a single, trusted system. A small business looking for a straightforward and simple payroll solution will find Gusto payroll affordable. Currently, Gusto has limited integrations, but it’s on its way to being a full-service HR solution. It is the most cost-effective option for payroll and can be very user-friendly for employees and managers.

Rippling is another great choice. In one comprehensive platform, Rippling integrates payroll, benefits, HR, and IT. Automating a lot of your busy work can be achieved by bringing all your employee information and systems together. With integration with over 400 apps, Rippling is a technologically advanced and modern solution. It has unique features, such as inventory management and device management, but it is easy to set up and use. Small businesses with remote employees will likely find Ripple to be an effective solution.

Let Milestone handle your payroll

With combined decades of experience in accounting and human resources, Milestone is ready to help you manage your payroll and grow your business. Contact us today. We are ready to answer your questions.

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