Question 1

What payroll provider should I use?

Accepted Answer

Gusto is the startup standard—easy, full-featured. Deel/Remote for international. Rippling for larger teams with complex needs. Start with Gusto typically.

Question 2

What does payroll cost?

Accepted Answer

Base fee ($30-50/month) plus per-employee fee ($6-12). Benefits admin extra. Worth every penny vs doing it wrong yourself.

Question 3

What about contractor payments?

Accepted Answer

Most payroll tools handle contractors too. 1099 tracking, payments, year-end forms. Separate from employee payroll but same platform.

Question 4

How do taxes work with payroll?

Accepted Answer

Provider withholds from employee checks, pays employer portion, files quarterly and annual returns. You fund it, they handle the rest.

Question 5

Do I need to offer benefits?

Accepted Answer

Not legally required in most cases until 50+ employees (ACA). But health insurance helps attract talent. Payroll providers offer benefits administration.

Question 6

How do I set up benefits?

Accepted Answer

Payroll providers partner with benefit companies. Shop plans, set contributions, employees enroll. Open enrollment annually. Provider handles deductions.

Question 7

What about 401(k)?

Accepted Answer

Optional but attractive benefit. Gusto and others offer integrated 401(k). Match is optional. Admin handled by payroll integration.

Question 8

How often should I run payroll?

Accepted Answer

Semi-monthly or biweekly most common. Monthly possible but employees prefer more frequent. State minimums may apply.

Question 9

What about state registrations?

Accepted Answer

Need to register in states where you have employees. Payroll providers often help or handle. Unemployment insurance, withholding accounts.

Question 10

How do I handle PTO and sick leave?

Accepted Answer

Set policy, track in payroll system. Many states have mandatory sick leave. Unlimited PTO popular but track it anyway.

Question 11

What if I have international employees?

Accepted Answer

Deel, Remote specialize in global payroll. Handle local compliance, taxes, benefits. Or use Employer of Record. Don't DIY international payroll.

Question 12

What about workers' comp insurance?

Accepted Answer

Required in most states. Payroll providers offer it or integrate with providers. Rates based on job classification. Don't skip it.

Question 13

How do I handle raises and promotions?

Accepted Answer

Update salary in payroll system. Effective date specified. System handles transition. Keep records of compensation history.

Question 14

What happens at year end?

Accepted Answer

Provider issues W-2s to employees, files with IRS and states. You review before sending. 1099s for contractors. Deadlines matter.

Question 15

Can I run payroll myself?

Accepted Answer

Technically yes but strongly discouraged. Penalties for errors are steep. Complexity grows. Even accountants recommend providers. Not worth the risk.

I need to set up payroll for my first employees

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