Get an employer identification number (EIN)
Register with your state and local tax agencies
Collect employee tax forms and new hire paperwork
Set up a payroll calendar
Determine employee pay rates and pay types
Track employee hours, overtime, and paid time off
Calculate gross pay
Calculate pre-tax deductions
Calculate payroll taxes
Calculate post-tax deductions
Calculate net pay
Withhold and remit federal taxes
Withhold and remit state and local taxes
Pay employer payroll taxes
File required payroll tax forms
Issue paychecks or direct deposits
Keep accurate payroll records
Reconcile payroll each pay period
Stay current on tax law and wage law changes