Determine your business’s payroll system: Decide how your business will handle payroll – either internally or externally. Define your payroll policies: Determine how you will pay your employees, independent contractors, and freelancers, and then develop policies for leave, attendance, and benefits. Collect and input employee data: Get all the necessary employee information, including bank account numbers and routing numbers for those employees who wish to have direct deposit. Implement time tracking: Introduce a method for employees to track their working hours. Review timesheets: Examine employee timesheets and check for discrepancies. Approve and submit payroll for payment: Confirm accurate timesheet recording, deduct any necessary withholdings (including all required government taxes), and then submit for payment. Save payroll records: Keep copies of payroll records for any adjustments you need to make and to have for your end-of-year reporting.