Running payroll can be a complicated process, as it requires several documents and tools to ensure that you pay employees accurately and on time. The most common requirements that a small business will need include an employer identification number (EIN) and a bank account with sufficient funds to pay employees (either through direct deposits or check payments). You also need to understand payroll compliance regulations, such as the required tax payments at all levels (federal, state, and local) and the payroll tax forms you need to submit. In addition, knowing common payroll terminologies (such as garnishments, gross and net pay, fringe benefits, and pay periods) will help you avoid potential pay errors. If you’re new to processing employee payments, you can attend payroll training to familiarize yourself with how to run payroll, including labor laws and state guidelines. You can also hire a payroll accountant to handle your pay runs or invest in a payroll system like TimeTrex, Gusto, and the other providers we mentioned in this guide.