How to Run Your First Payroll
Complete step-by-step guide to processing your first payroll with PayMasters. Learn everything from adding employees to submitting your final payroll run.
- How to prepare for your first payroll run
- Adding employees and collecting required information
- Setting up pay schedules and payment methods
- Reviewing and submitting your payroll
- Understanding payroll reports and tax filings
1Prepare Your Information
Before you run payroll, gather these essential documents and information:
- Employee Information: Full names, addresses, Social Security Numbers (SSN), birth dates, and hire dates
- Tax Forms: W-4 forms for federal withholding and state withholding forms
- Pay Information: Salary or hourly rate, pay frequency, and any deductions
- Banking Details: Bank account information for direct deposit
- Company Information: EIN (Employer Identification Number), state tax IDs
2Add Your Employees
Navigate to Dashboard → Employees → Add Employee
- Enter basic information
Full name, email, phone number, and home address
- Add tax information
SSN, W-4 federal allowances, and state withholding details
- Set compensation
Choose salary or hourly, enter rate, and select pay frequency
- Configure direct deposit
Bank routing number, account number, and account type (checking/savings)
- Add deductions and benefits
Health insurance, 401(k), garnishments, or other deductions
Use the Bulk Import feature to add multiple employees at once via CSV upload. This saves time if you're migrating from another payroll system.
3Set Up Your Pay Schedule
Navigate to Dashboard → Settings → Pay Schedules
Choose Your Pay Frequency:
- •Weekly: Employees paid every week (52 pay periods/year)
- •Bi-weekly: Every two weeks (26 pay periods/year) - Most popular
- •Semi-monthly: Twice per month on specific dates (24 pay periods/year)
- •Monthly: Once per month (12 pay periods/year)
Set Pay Dates:
Select your first pay date, and PayMasters will automatically calculate all future pay dates based on your chosen frequency.
4Enter Hours and Earnings
Navigate to Dashboard → Payroll → Run Payroll
For Hourly Employees:
- Enter regular hours worked (up to 40 hours/week)
- Add overtime hours (hours over 40 at 1.5x rate)
- Include bonuses, commissions, or tips
For Salaried Employees:
Salary is automatically calculated based on the annual salary you entered during employee setup. You can add bonuses or reimbursements if needed.
PayMasters AI will automatically detect and flag any unusual entries (e.g., excessive overtime, missing hours, or calculation errors) before you submit payroll.
5Review and Submit
Before submitting, PayMasters shows you a detailed preview:
- Gross Pay: Total earnings before deductions
- Tax Withholdings: Federal, state, and local taxes
- Deductions: Benefits, 401(k), garnishments
- Net Pay: Amount employees will receive
- Company Taxes: Employer portion of taxes (FICA, unemployment)
- Total Cost: What will be debited from your account
Click "Submit Payroll" to finalize. Once submitted:
- ✓Direct deposits are initiated (typically 1-2 business days)
- ✓Employees receive email notifications with pay stubs
- ✓Tax filings are automatically prepared and submitted
- ✓Reports are generated and archived
🎉 Congratulations!
You've successfully run your first payroll with PayMasters! Here's what to do next:
- Set up automated payroll runs to save time each pay period
- Explore AI features like cost forecasting and auto-corrections
- Enable employee self-service so team members can view pay stubs
- Review payroll reports and analytics in your dashboard