US Payroll – Step 3: Choose Pay Frequency & Payroll System

💼US Payroll – Step 1: Get Set Up :- 1️⃣ Apply for EIN (Employer Identification Number) :- Think of this like your company’s “Tax ID number” from the IRS. 👉 Example: Just like you need a NTN in Pakistan, your business needs an EIN in the US. 2️⃣ Register with State Agencies: – -For state…

💼US Payroll – Step 2: Collect Employee Documents :- 1️⃣ Form W-4 – Federal tax withholding Confirmation from Employee, (plus state forms if required). 👉 Example: This tells you how much tax to deduct from paychecks. 2️⃣ Form I-9 + ID – To verify work eligibility in the US. 👉 Example: Passport, or Driver’s License…

💼US Payroll – Step 5: Timekeeping & Gross Pay Calculation: – 1️⃣ Collect Time Data – Get timesheets/timecards for hourly staff or confirm salaries. 👉 Example: Hourly employee logs 45 hours; salaried employee gets fixed pay. 2️⃣ Calculate Gross Pay – Hours × Rate + Bonuses + Commissions + Taxable Reimbursements. 👉 Example: 40 hrs…

💼 US Payroll – Step 6: Calculate Payroll Taxes (Per Run) 🧾 What It Means:- Payroll taxes are shared between employees and employers — covering federal income tax, Social Security, Medicare, and unemployment taxes. Example – just like in India where PF (Provident Fund) has both portions (employees and employers). The only difference in the…

💼US Payroll – Step 4: Set Up Benefits & Deductions :- 1️⃣ Pre-tax deductions – 401(k), HSA, commuter benefits 👉 Example: Employee puts $200/month into 401(k) before taxes. 2️⃣ Post-tax deductions – Insurance, other after-tax items 👉 Example: $50/month for optional life insurance. 3️⃣ Employer contributions – Company match, benefit share 👉 Example: Employer matches…