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Using Payroll Calculator7 min readIntro

Add and manage employees in Payroll Calculator

Create W-2 employees with pay frequency and withholding; track 1099 contractors on the roster without including them in pay runs.

WorkMinty publishes general educational information for small business owners. It is not tax, legal, or accounting advice. Tax rules change and vary by state and situation. Consult a qualified CPA, enrolled agent, or attorney before making decisions or responding to a government audit.

Educational only · Last reviewed May 30, 2026

Product guide · Last reviewed May 30, 2026: Add W-2 employees and manage your roster in Payroll Calculator. For whether someone should be W-2 vs 1099, see 1099 vs W-2 overview.

W-2 vs 1099 in this app

TypeOn roster?In pay runs?Taxes calculated
W-2 employeeYesYesFIT, FICA, CA or WA state taxes
1099 contractorYesNoNot run through payroll—track for your records only

Contractors are excluded when you click Run payroll for selected. Pay them outside the app; use ClearLedger for 1099-NEC reporting if needed.

Step 1 — Open the employee roster

  1. Workforce → Employees tab (/workforce).
  2. Review sortable columns: name, pay, frequency, active status.

Step 2 — Add a new employee (form)

  1. Click New employee (or go to /employees/new).
  2. Enter name and contact fields.
  3. Select W-2 employee (not 1099 unless you only want roster tracking).

Step 3 — Pay setup

FieldGuidance
Salary or hourlySalary = fixed per period; hourly = rate × hours on each run
Pay frequencyWeekly, biweekly, or monthly—must match how you actually pay
ActiveInactive employees are hidden from new pay runs

Step 4 — Withholding (federal & state)

  1. Open the withholding section or modal.
  2. Option A — W-4 / DE-4 worksheet: Enter filing status, dependents, extra withholding—app converts to an estimated FIT/PIT % of gross.
  3. Option B — Flat %: Enter fixed FIT and PIT percentages (per calendar tax year).

Important: This is an estimate for small-business payroll—not IRS Pub 15-T exact withholding. Your CPA may recommend flat % for simplicity.

For California employees, DE-4 drives state PIT estimate similarly.

Step 5 — Optional: 401(k), tips, owner fields

  • 401(k) deferral — Traditional deferral reduces FIT/PIT base; still subject to FICA.
  • Owner role — Mark owners for health insurance checklist on pay runs.
  • Default health premium — Pre-fills owner health amount on each run (S-corp/C-corp guidance).

Step 6 — Save and verify

  1. Save the employee.
  2. Confirm they appear on the roster with correct pay frequency.
  3. Run a test pay period with $0 or minimal pay in demo, or a real small run in production.

Step 7 — Edit or deactivate

  • Click a row to edit pay, withholding, or active status inline.
  • Deactivate instead of delete when someone leaves—you preserve history for W-2 totals.

Step 8 — CSV import / export (paid license)

ActionRequirement
Export roster CSVLicense with canExport
Import roster CSVLicense with canImport

Basic (free) license: no CSV import or export.

Warning: Bulk payroll history CSV import stores rows without full tax recomputation—use for migration stubs only; prefer running payroll in-app for accurate taxes.

License limit reminder

Basic tier: one active employee per company. Upgrade via Account → License key for more employees and CSV features.

Next: Run payroll step by step

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