Set up new employees. New employees must fill out payroll-specific information as part of the hiring process, such as the W-4 form and medical insurance forms that may require payroll deductions. Copies of this information should be set aside in the payroll department in anticipation of its inclusion in the next payroll.
Collect timecard information. Salaried employees require no change in wages paid for each payroll, but an employer must collect and interpret information about hours worked for nonexempt employees. This may involve Having employees scan a badge through a computerized time clock, punch a card in a stamp clock, or manually fill out a time.
Verify timecard information. Whatever the type of data collection system used in the last step, the payroll staff must summarize this information and verify that employees have recorded the correct amount of time. This typically involves having supervisors review the information after it has been summarized, though more advanced computerized timekeeping systems can perform most of these tasks automatically.
Summarize wages due. This should be a straightforward process of multiplying the number of hours worked by an employee’s standard wage rate. However, it can be complicated by overtime wages, shift differentials, bonuses, or the presence of a wage change partway through the reporting period.
Enter employee changes. Employees may ask to have changes made to their paychecks, typically in the form of alterations to the number of tax exemptions allowed, pension deductions, or medical deductions. Much of this information must be recorded for payroll processing purposes, since it may alter the amount of taxes or other types of deductions.
Payroll accounting services
If you are a Small business owners, then you must manage most aspects of your business, from marketing, sales to finances and payroll. The issue that there is no time to do all of this at once. The good news is that you can benefit from payroll accounting services.
Choosing and administering benefit plans for your employees is often a complex process. An accounting service can help you develop, implement, and administer your benefit, retirement, and profit-sharing plans with an eye toward rewarding your employees and reaching your company’s financial and business goals. They can also help maximize tax advantages in implementing these plans. As your business grows, your business and your employees will be rewarded for the hard work that contributed to the success of your business.
You can Free yourself and your staff from the hassles of payroll processing and get back to doing what you do best—running your business. Payroll accounting services, will implement a solution that meets your unique needs, including check processing and printing, direct deposit, pay cards, and W-2 and W-4 processing.
Good cash management can improve a company’s liquidity, reduce costs, and increase profitability. Accounting Business Services can help you maintain optimal cash flow levels by tracking sources and uses, forecasting, and budgeting accordingly. To a business entity, cash flow is something that can make or break the business’ ability to survive. Accounting services can help you analyze your spending, re-balance your budget and/or debts for an optimal cash flow to support your business’ success. This balance plan should be revisited if and when there were any major changes in your business structure to ensure that you are operating at an optimal level.
Accounting for Payroll A COMPREHENSIVE GUIDE by Steven M. Bragg and John Wiley