Bookkeeping for contractors and service businesses in MetroWest and Greater Boston.

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Payroll System Setup

We build your payroll system right the first time. Employee profiles, tax withholdings, pay schedules, and direct deposit configured correctly so your first payroll runs clean.

What This Is

Signing up for payroll software and having your payroll system set up correctly are two different things. The software gives you a shell. Proper setup means configuring employee records, tax withholdings, pay schedules, and direct deposit so everything works right the first time you run payroll.

Most business owners click through the setup wizard, answer questions they’re not entirely sure about, and hope for the best. That approach creates problems that don’t show up until the first tax filing or until an employee notices their paycheck is wrong. We configure the system properly from the start so those problems never happen.

The Configuration Work

Employee profiles with correct classification and exemption status. Federal and Massachusetts state withholding calculations. Pay schedules that match how your business actually operates. Direct deposit setup with proper banking verification. Earnings codes for regular pay, overtime, bonuses, and reimbursements.

The Compliance Foundation

Federal EIN verification and state tax account registration. Massachusetts Paid Family and Medical Leave setup. Unemployment insurance configuration. New hire reporting settings. All the behind-the-scenes registrations and connections that payroll software assumes you already have in place.

Why This Matters

Payroll errors compound. Withhold the wrong amount from an employee’s first paycheck and you’re now off by that amount every pay period. Set up a worker as an employee when they should be a contractor and you’ve created a tax problem that affects every filing until someone catches it. These aren’t mistakes you discover immediately. They surface months later when fixing them is painful.

The stakes are higher than most business owners realize. The IRS penalizes late deposits regardless of whether you knew the deadline. Massachusetts has its own requirements that generic payroll tutorials don’t cover. Employees expect accurate paychecks on time, and nothing damages trust faster than messing up someone’s pay.

Massachusetts Requirements

Paid Family and Medical Leave contributions require specific setup. State withholding follows its own tables. Unemployment insurance rates vary by employer history. Generic software tutorials written for national audiences skip over these details entirely, leaving you to figure it out on your own or learn about it from a penalty notice.

The Compounding Effect

A $20 withholding error on a biweekly paycheck becomes a $520 problem by year end. Multiply that across several employees and you’re looking at thousands of dollars in corrections, plus the administrative headache of issuing corrected W-2s and explaining to employees why their tax refunds are different than expected.

What Changes

Your first payroll runs without surprises. Employees get the right amount deposited on the right day. Tax withholdings calculate correctly for both federal and Massachusetts requirements. You’re not guessing about whether you did it right or waiting to find out you made a mistake.

The system integrates properly with your bookkeeping from day one. Payroll expenses flow into the right accounts. Tax liabilities track accurately. When you’re ready to add another employee or adjust pay structures, the foundation is solid and the changes are straightforward.

Confidence From Day One

You know the setup was done by someone who understands Massachusetts payroll requirements and has configured these systems before. No wondering if you answered the classification questions correctly. No hoping the withholding formulas are right. The system works because it was built to work.

Ready to Grow

Adding your second or third employee becomes simple. The structure is already in place. Pay codes exist. Tax accounts are registered. You’re not starting from scratch each time you hire. You’re adding to a system that was designed to accommodate growth from the beginning.

Greater Boston's Trusted Bookkeeping Partner

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We'll ask a few questions, figure out what you need, and give you a straightforward quote.

Full-service bookkeeping firm serving contractors and small businesses in MetroWest and Greater Boston. From monthly bookkeeping to job costing and payroll, we bring 20 years of hands-on business experience to your back office. Locally owned in Bellingham, Massachusetts.

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