How do I prepare a draft payroll?

Payroll preparation is totally dependant on the location of the employer. Every country and state has different rates and requirements and even some local governments tax payroll. Your government tax agency should offer handouts on how it is done and there are computer solutions available for many areas.

I have found that the easiest thing to do is use a payroll service. There are SO many specifics involved, it's nice to hand over that headache for a low fee. Search for services in your area. Before you hand them your and your employees private financial data, be sure to check them out to make sure they're legitimate and there aren't any major BBB complaints against them.