Small Business Payroll

Small business payroll FAQs

How much does small business payroll cost?

The cost of small business payroll depends on several factors, including payroll frequency, total number of employees and the specific services that are needed. Most commonly, there is a per-payroll processing fee and an annual base fee. The important thing to remember is that a payroll service may actually save you money when compared to the cost of tax penalties. ADP will work with you to determine the right payroll setup for your business, whether you have just one employee or several.

Can a small business do their own payroll?

Do-it-yourself payroll is a popular choice for some new businesses, but like any other DIY project, it may only save you money if you have the skills and resources to do it correctly. You could be quickly overwhelmed by the amount of time it takes to run payroll on your own and the costly penalties that can possibly ensue if you make mistakes. For this reason, many small businesses turn to a payroll service provider for assistance.

How do small businesses run payroll?

Whether you choose to tackle the job on your own or work with a professional, running small business payroll, in its most basic form, consists of these steps:

1. Track and record employee hours worked
2. Calculate wages and withholding amounts (taxes, benefits, etc.)
3. Distribute wages to employees
4. Deposit the withheld taxes with appropriate government agencies
5. File employer tax returns at the applicable deadlines
6. Send employees T4/Releve and other required tax forms
7. Issue Record of Employment (ROE)

Throughout each stage of this process, you’ll need to comply with constantly changing regulations – a task that can be difficult without the expertise of a payroll provider like ADP.