Paying Your Team Just Got Easier

FreshBooks Payroll software is a full-service payroll software system that allows you to pay your employees (W-2s) and contractors (1099s). Process payroll, view payroll reports, and download forms for state and federal taxes. Plus, transactions for every pay run will be automatically created so your FreshBooks accounting software reports and books stay accurate and organized.

FreshBooks Payroll software has automatic tax filing and assistance with tax compliance, so maintaining accurate books and simplifying one of the most confusing parts of your business has never been easier. You’ll save yourself time, money, and likely, a few headaches too. All for a low monthly cost with no hidden fees.

In general, an employee:

• Works at a specific time and place set by you, the employer
• Generally works for just one company
• May receive training
• Uses your tools or other work-related resource
• Does work that is an integral part of your business
• Is subject to a large degree of control by you
• Is generally paid a salary or hourly wage

In general, a contractor:

• Can work whenever and sometimes wherever they’d like
• Can work for multiple companies
• Usually trains on their own
• Uses their own tools and resources
• Controls their own method of work
• Is often (but not always) paid by the project or on a flat-fee basis

As a result, each type of worker has different tax implications, so it is important to categorize them properly. 

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FreshBooks is designed for both small business owners just starting out and small and medium-sized businesses that are continuing to grow. You can keep your team on track with easy-to-use timesheets, expense tracking, and payroll. Add employee information with free Team Member Profiles or invite your Team Members with varying permissions as one of 5 user roles: Admin, Employee, Contractor, or Accountant. You can customize these roles further with Client Access and Project Manager settings.

Paying yourself is an important part and consideration of running a small business. FreshBooks Payroll helps you pay yourself easily. To get started:

1. Determine Your Business Type

Deciding on your business entity will help set the foundation for the entire payroll process, and will help point you to the payment style that’s right for you.

2. Figure Out the Best Payment Method

Now, think about how you’d actually like to pay yourself:

A. Owner’s Draw

This allows you, as the owner of the business, to withdraw money from your business for personal use. Currently FreshBooks Payroll does NOT support Owner’s Draw.

B. Salary

Salaries are set, recurring payments that are taxed by the state and federal governments.

3. Select an Amount

Once you’ve determined the right method, you need to calculate how much to give yourself. Here’s a handy guide to help: how much to pay yourself.

4.Pick a Payroll Schedule

If your business has at least one employee (including yourself!), you need to think about how often you want to pay yourself (e.g. bi-weekly, monthly, etc.)

5. Get Your Paycheck

Getting paid can be as easy as writing a check and depositing it into your personal bank account or using direct deposit.

FreshBooks Payroll software enables you to run payroll with ease, generating payroll tax filings & payments, W-2s, 1099s, and direct deposits on your behalf. Your transactions for every pay run will be automatically created so your reports and books stay accurate and organized.

FreshBooks Payroll calculates your taxes with the correct government agencies every time you run payroll. FreshBooks Payroll software also makes filing payroll taxes easier because it’s done automatically for you.

FreshBooks Payroll software is an add-on for current FreshBooks subscribers. In addition to the cost of your FreshBooks subscription, you will pay for FreshBooks Payroll per person. The subscription costs $40/month plus $6/month for each person and includes unlimited payrolls, free direct deposit, and automatic tax filing of federal and state payroll taxes. FreshBooks Payroll software is deeply integrated with FreshBooks accounting software for seamless data entry and accurate records.

With FreshBook’s full-service payroll software, processing payroll takes 4 days, at which time your employees will get their paycheck deposited by direct deposit.

Managing your team is easier than ever with FreshBooks Payroll. Users can pay their employees and contractors (in minutes!) right from within FreshBooks while their payroll income taxes are automatically withheld and remitted. Plus, transactions for every pay run will be automatically created so your reports and books stay accurate and organized.