The first time setting up your payroll might seem challenging for any business owner, especially with the complexities of taxation and compliance rules. As a small business starting or a growing company seeking more productive methods to implement, it is crucial to understand the fundamentals of setting up payroll to ensure a successful and efficient business operation.

This blog elaborates on the understanding of a step-by-step process on “how to set up payroll with PayProNext for the first time”, starting with the process of signing up to setting the important payroll settings, and taking advantage of the functionality provided to make your payroll system easier. Now, let us explore how PayProNext simplifies the new payroll setup and streamlines this process without mistakes.

1. The Essential Terms You Need to Know in PayProNext

It is necessary to get familiar with a few terms and concepts before delving into the technicalities of the process of installing payroll:

A. Pay Period vs. Pay Date

• Pay Period: The duration during which an employee works and earns wages (e.g., April 1 to April 15).

• Pay Date: The date upon which employees receive payment for the work they have done in the pay period (e.g., April 20).

B. Deductions vs. Contributions

• Deductions: Deductions refer to the amount that is deducted from the paychecks or wages of the employees to cover taxes, insurances, or even retirement planning. They may be pre-tax or post-tax.

• Contributions: This is the employer's contribution to benefits such as retirement plans, etc.

2. Beginner Payroll Setup: PayProNext Solution for First-Time Payroll Setup

PayProNext makes it easier to set up the payroll, as it provides step-by-step instructions. This is how you can run a payroll with PayProNext:

Step 1: Register to PayProNext

Begin by getting your account registered on the PayProNext site. You will have to insert your email, company information, and accept the terms and conditions.

Account Creation Process in PayProNext:

1. Sign Up: Go to the PayProNext sign-up page and enter your basic information (as shown in Figure 1).

2. Email Verification: You will have to verify your account via email after signing up and logging in again (as shown in Figure 2).

3. Company Information: Figure 3 shows the company information that you need to add.Put in your details concerning your business, including your business name, address, the number of employees, and the NAICS code, etc.

Figure 1 PayProNext Sign-Up (Screen 1)

Figure 2 Account Sign-Up (Screen 2)

Figure 3 Account Setup (Screen 3)

Step 2: Complete Payroll Set-up Checklist

PayProNext’s setup checklist ensures you complete every step needed to get your payroll running smoothly. Follow each stage carefully to avoid delays or compliance issues, as shown in Figure 4:

• Setup Checklist Page – View the entire setup process in one dashboard so you can see what’s done and what’s pending. This page acts as your roadmap to ensure nothing is missed. You can revisit it anytime to update or complete missing steps.

• Location – Add your company’s main office address and any branch or remote work locations. This ensures accurate tax calculations based on local laws. You can edit or add locations later as your business grows.

• Employee List – Create detailed profiles for each employee, including name, address, SSN, pay frequency, salary type, pay rate, position, and hire date etc. Having complete profiles ensures accurate payroll and tax filing

• Federal Tax Number – Enter your Employer Identification Number (EIN) issued by the IRS. This is required for all payroll tax reporting. Without this, you cannot process payroll legally.

• State Tax Number – Provide your state-issued employer tax ID, used for state tax filings and unemployment insurance. This step ensures compliance with state-specific payroll laws.

• Hours Type – Define how employee work hours are recorded, such as regular hours, overtime, or double overtime, etc. This helps in automating overtime and leave calculations.

• Money Type – Set up different pay components like bonus, commission, tips etc. This ensures payroll calculations reflect every earning accurately.

• Identity Verification – Securely verify your business and account ownership through our built-in process. This step prevents fraud and protects sensitive payroll data.

• Payroll History – Enter payroll records from previous periods if you’re switching from another provider. This keeps year-to-date tax and wage records accurate.

• Plans – Choose from PayProNext’s available plans based on your payroll needs and service level preferences. You can upgrade or change your plan anytime.

• Credit Card Information – Add a valid payment method to activate your payroll account. This ensures uninterrupted access to payroll processing and reporting features.

PayProNext’s Benefit:

• Automated Compliance: PayProNext allows to make all tax calculations to be made automatically, which eliminates the possibility of inaccurate calculations and missing payments.

1. Bank Account Information: To make payroll processing and direct deposits easier, link your company's bank account.

2. Deductions and Contributions: Define pre-tax or post-tax deductions as needed, and set up both required and optional deductions (such as health insurance and retirement savings).

3. The Frequency of Payroll: Depending on what works best for your company, decide whether to process payroll weekly, bi-weekly, semi-monthly, or monthly.

4. Ease of Setup: PayProNext’s user-friendly interface ensures that even first-time users can easily configure payroll settings without confusion.

Figure 4 Payroll Setup Checklist

3. Run Your First Payroll

After completing every step as shown in Figure 4, you will see your dashboard in the next screen. A glimpse of your dashboard is shown in Figure 5. Once setup is done, you are ready to make your first payroll:

1. Add Pay Period Information: Click the pay frequency, the start and end dates of the pay period, and the pay date.

2. Employee Hours: Record worker hours worked by the hour, and PayProNext will automatically tabulate the earnings.

3. Review and Submit: Before processing payroll, you can review the list of employees for whom you want to run payroll, as shown in Figure 6. Go to the page of payroll details and click the Run Payroll.  

PayProNext’s Benefit:

• Automated Tax Filing: After payroll has been processed, PayProNext automatically computes and pays both federal and state, and local taxes.

Figure 5 PayProNext Dashboard

Figure 6 Run a Payroll

4. Reporting and Compliance

One of the main advantages of PayProNext is its ability to generate various reports, as illustrated in Figure 7, which support payroll compliance and aid in financial planning. The platform has customizable reports, which include:

1. Payroll Tax Reports: Record all the tax paid.

2. Employee Payment History: View detailed records of employee pay and deductions, and taxes.

3. Contribution and Dedication Reports: See an overview of employee and employer contributions.

PayProNext’s Benefit:

• Custom Reporting: Create reports based on your business requirements (tax filings, audit purposes, and planning purposes).

Figure 7 Reports

5. Advantages of Using PayProNext for First-Time Payroll Setup

• User-Friendly Interface: Never run payroll before? No problem! The interface is user friendly, therefore PayProNext will lead you through the steps.

• Automated Tax Filing: When you are using PayProNext, you are never too late to sort out taxes or file the wrong taxes.

• Comprehensive Employee Self-Service: PayProNext allows its employees to view their pay stubs, tax documents, and a lot more via the employee self-service portal.

• Scalability: Paypronext can grow with your business as it scales to meet the changes your business can undergo.

Conclusion: Simplifying Payroll with PayProNext

Initializing payroll may appear hectic, but PayProNext makes it effortless to accomplish the procedure with no complications. PayProNext will help to effectively and efficiently manage the payroll, starting with a smooth account creation process and working out to tax compliance, and automated payroll processing.

Join the PayProNext payroll experience today- and end your payroll pain manually.

Want to establish payroll in a correct manner? Join PayProNext now and enjoy the ease of a payroll system that fits the size of your company.