November 22, 2009 
This entry was posted on Sunday, November 22nd, 2009 at 10:37 pm and is filed under Accounting, How To. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
Payroll is one of the most difficult accounting functions for a small business. If your business is a sole proprietorship and you are the only one working in the business then you do not have to setup a formal payroll system. You can then pay yourself on a periodic schedule and are considered deductions for the business.
If you operate a partnership and you do not have employees then the same rule applies. You are liable for the individual income taxes. If you operate as a sole proprietorship and you have employees then you have to follow by the payroll rules. You are required to make payroll tax deposits, file various quarterly payroll tax returns and make additional end of the year reports.