How to setup your payroll in Wave accounting

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How to setup your payroll in Wave accounting

Video Transcript

Speakers in this video: Jimmy (GetApp) and Rob (Wave)

Rob: I'm going to be talking abot Payroll by Wave today. We've had a lot of great improvements over the last year that are making it easier than ever to pay your employees and stay on top of your taxes. I've got a demo account set up here. I'll just show you a few of the features that make it easier than ever. With "Add an Employee", I'm just going to walk you through the process of adding an employee so anybody who's never experiences this app before get's a little bit of an idea of what it's like. Add Jim here.

Alright, we're going to hire Jim here. He's a pretty good employee so we'll pay him $100,000 a year, why not. I feel generous today. Just like that, you've created a new employee. Now we've set the salary. The vacation defaults for you, but if you need to edit the vacation policy for the employee before running a payroll, it's just as easy as clicking "Vacation," and change it. Let's give him three weeks of vacation a year and that's effective also his hire date of July first. If you're from California, you may be aware that the state government recently legislated a mandatory sick leave policy. You'll be happy to see that we are on top of this and we do have the sick leave feature available for all employees of California. Our compliance experts are staying on top of things and should any other states legislate this, moving forward, we will roll out the sick leave feature there as well. What else might you need to do before you run a first payroll? An employee might have to add some deductions from their pay. Let's say that you have a 401-K plan. We're going to take every check. This person is going to contribute $100 to their 401-K and this will ensure that your payrolls and your pay stubs are accurate for all employees at all times. The goal here is at the end of the year, they do not owe any taxes in addition to what you've already sent to the government for them because nobody likes paying extra taxes a year. We've shown you how easy it is to add an employee. Now, I'm very quickly going to take you through the process of approving a payroll. Again, we've already gone ahead and added that $100 401-K deduction. We're just going to review the payroll. Since this is our first time approving a payroll with this new employee, we do have some tax settings to take care of. If you're not sure which tax is used, we do have these handy defaults. What this is is it always defers to the least generous taxation to make sure that we don't put your employee in a situation where at the end of the year, they're going to owe taxes because as I mentioned earlier, you don't want an angry employee coming back to you in February saying, "Why didn't you withold enough taxes?" This just makes it easy to make sure you're compliant and you're witholding enough taxes for your employees. Now that we've said, "Yes, go ahead and use these defaults," we can quickly review the payroll. Here's the pay stubs here for the interested in taking a look. Once we see everything's good, we go ahead and say, "Approve this payroll," and now everything is set. As we can see, this payroll is going to cost about $7,600. If you have direct deposit on, we would pull the funds from your bank account three days prior to paying your employees. Now that you've run that payroll, we can go take a look at the taxes that are associated with it. Before I do that, I just want to show you the new tax profile page very quickly. This is a page that makes it very easy to enter all of your relevant tax information with both the state and federal government. You can keep track of your employer identification number with the IRS as you can see here as well as your state of California Employment Development number. You set all of your payment frequencies and your payment rates. What does that help us do? Once you've set these, this allows us to tell you what taxes are due, to whom, and when they are due on the handy tax liabilites page we've created here. This is also a new feature of the last year. It makes it easier than ever to track your taxes and when they're due. All of these taxes here are actually from that last payroll we approved. As you can see, it's just shy of $8,000 payroll. We've got about $3,000 in taxes here so you can expand these and get further detail. You see there's the state tax and the California SDI as well. What it will do is when they come due, we'll send you an email to let you know, "Hey, you've got a tax liability due." Once you've paid it to the state or federal government, you can just come in here and click "Market Paid." As you can see, it reduced the balance by the due tax liability and added it over here into the taxes marked paid column. Again, for auditing purposes, this page is very, very handy. You can isolate to just the department you want people looking at and say, "Okay, just give me everything that's happened so far this year." Once again, this will just make filling out your year-end forms a breeze, and as you can see, it's already updated the filtering there for you.