Paying employees is a sequence rather than a single act: register as an employer, collect the information the tax authority requires from each person, calculate gross to net for the period, pay on the agreed date, report what you paid, and keep the records. Software does the arithmetic. The parts that go wrong are almost always the registration, the information collected at the start, and the deadline.
Before the first payslip
Register as an employer with the tax authority, obtain the references you will file under, and collect each employee's tax information on the required form. Get the employment terms agreed in writing, including pay frequency and the pay date, because the pay date is a contractual promise and your filing deadlines hang off it.
Running the period
Collect hours or confirm salaries, apply any variable elements, calculate deductions, then have somebody other than the preparer look at the totals before payment. That last step is the cheapest control in payroll and the one small employers skip. Compare this period's total to last period's and ask about any difference you cannot explain.
Reporting and paying over
Most jurisdictions require a report at or near the time of payment, and payment of the deductions on a separate schedule. Missing either is a penalty regardless of whether the employees were paid correctly. Put both dates in a calendar that somebody other than you can see.
Records, and how long they last
Keep the calculation, not just the payslip: hours, rates, deductions and the reports filed, for the period your jurisdiction requires, which is usually several years. When a question arrives about a pay period long gone, the record is the whole of your answer.
Questions people ask about how to pay employees
Can I run payroll myself?
Yes, and many small employers do, using recognised software. The obligations that trip people up are registration, filing on time and keeping the detail, rather than the calculation itself.
How often do we have to report payroll?
In most jurisdictions at or around each payment, with the deductions paid over on their own schedule. Check both dates for your jurisdiction and diarise them, because they are separate obligations.
What is the most common first payroll mistake?
Paying before registering, or paying on a date that leaves no time to file. Both are avoidable by doing the registration first and setting a pay date that fits the deadlines.
Do we need a payslip?
In most jurisdictions yes, with prescribed content, and it must be provided at or before payment. Software produces them; the requirement is on you, not the vendor.