The payroll process starts after you hire your first employee. Each pay period, employees work and must be paid based on their hours and pay rate. However, before giving the employee a paycheck, you need to process deductions such as state and federal taxes, unemployment, and insurance, as examples. The result is net pay, provided to the employee in a paycheck, direct deposit or other method such as a payroll card. Some U.S. states require that you document the payment information, including hours worked, earnings and deductions on an employee pay stub. Take a look at the simple payroll process flow shown below.
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