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United States2 min readSources: IRS

How to do payroll for a small business

Short answer

To run payroll yourself: get an EIN, collect each employee's Form W-4 and Form I-9, choose a pay schedule, calculate withholding and FICA for every paycheck, pay employees with a pay stub, deposit the withheld and employer taxes on your monthly or semiweekly schedule, and file Form 941 each quarter and Form 940 each year. States add their own registrations and returns.

Enter each employee's figures and get a clear pay stub, with federal taxes calculated.

Make this pay period's pay stubs

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Illustration for “How to do payroll for a small business”: an abstract sheet of paper with a shop front symbol

Before the first payroll

  1. Get an employer identification number (EIN); federal payroll returns and deposits need one.
  2. Have each new employee complete Form W-4 (for withholding) and Form I-9 (to verify they can work in the US).
  3. Register with your state for income tax withholding and unemployment insurance, if your state requires it.
  4. Choose a pay schedule: weekly, every two weeks, twice a month or monthly.

SUTA tax explained

Every payday

  1. Work out gross pay from salary or hours.
  2. Withhold federal income tax (Publication 15-T), social security (6.2%) and Medicare (1.45%), plus any state tax and other deductions.
  3. Pay the employee the net amount.
  4. Give them a pay stub showing gross pay, each deduction, net pay and year-to-date totals. Many states require one.
  5. Keep records of hours, pay and tax withheld.

Payroll register

Deposits and returns

Federal deposits and returns (Publication 15)
WhatWhen
Deposit withheld income tax, social security and MedicareMonthly or semiweekly, depending on your deposit schedule
Form 941 (quarterly federal tax return)By April 30, July 31, October 31 and January 31
Form 940 (annual FUTA return)Once a year
Form W-2 to each employeeAfter the end of the year

PayDocs makes the pay stub. PayDocs works out federal income tax, Social Security, Medicare and supported state taxes for 2026 pay dates (see what we calculate). It doesn't deposit taxes, file returns or pay employees.

What is FUTA?

Questions

Can I do payroll myself without software?

Yes. Many small employers calculate pay themselves, pay by bank transfer, give a pay stub and make deposits and filings through the IRS's systems. Payroll software automates the filing part.

Do I have to give employees pay stubs?

There's no federal requirement, but many states require a wage statement each payday. Check the rules where your employees work.

Sources

Official sources checked September 24, 2026. This guide explains how pay documents work; it is not tax or legal advice.

More on small business payroll

Run payroll yourself for a small business, from the first hire to paying yourself.

Make a pay stub from your payroll figures

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