In every business, maintaining employee performance is really important no matter it is startup or a big company and one of the way is by conducting performance appraisal. Therefore, the objectives of this research is to prove whether Performance Appraisal can impact Employee Performance at Toko Lima Ribu, Padang and to understand what types of Performance Appraisal practices is the best to be used at Toko Lima Ribu, Padang. Performance appraisal is a process which is used to evaluate and provide feedback related to employee performance. Employee performance is related with each input they provide to come up with a certain level of output. This research is using quantitative research design and IBM SPSS Statistics V.21 application. The hypothesis test with the value of Zcount (4.095) higher than Ztable (1.96) shows that Performance Appraisal impacts Employee Performance at Toko Lima Ribu, Padang. Performance Appraisal impacts 50.1 percent of Employee Performance while the rest of 49.1 percent is affected by other factors. As the conclusion, the result of the analysis and research shows that Performance Appraisal impacts Employee Performance at Toko Lima Ribu, Padang. Moreover, the most suitable types of Performance Appraisal practice to be done at Toko Lima Ribu, Padang is face-to-face traditional Performance Appraisal. The recommendation for the family business is that they can encourage the employee to be more active in giving inputs so that the performance appraisal can be more effective.