You have started a business and need to either hire someone internally to do your payroll or get another company to do your payroll processing. What is involved in payroll processing? Where do you look for someone to do such an important task for your company? If you hire another company to do your payroll, what is involved in doing that? These and other questions you may have about Payroll Processing will be answered here.
What is involved in Payroll Processing?
As with any business, payroll processing takes the biggest chunk of money out of your budget. With all that is involved in payroll processing, you want to make sure it is done correctly and on time. Payroll processing activities actually begin as soon as you hire an employee. To begin the payroll process, you will need to get the necessary information from each and every employee. Most employers rely on a W-4 and possibly an I-9 to get all the information that is needed to process each employees’ pay check. With each payroll, you will need to collect the time cards or time sheets for all employees, calculate their pay, deduct any additional deductions the employee has requested, deduct the appropriate taxes, and at the proper time, submit those taxes to the proper tax authorities. Let’s look a little closer at the payroll processing procedures, the importance of each piece of information, as well as what you need to do with the information you get.
- Each and every employee will need to properly and completely fill out a W-4 to include name, address, social security number, number of exemptions and filing status, as well as any additional deductions requested by the employee – such as money they want taken out of their check to go toward retirement, installment loans, or to savings.
- You will also need to get a copy of their driver’s license or other approved photo ID and social security card or other approved documentation that shows they are legal to work and be in the USA.
- If they are requesting that additional money be taken out of their check for whatever reason, you will need to get the supporting documentation to make that happen as well.
- Each pay period, you will need to collect every employees’ time card or time sheet and calculate the pay for each, keeping in mind the deductions that need to be taken out.
- Pay checks can be processed either by hand or on the computer.
- When due, make sure you process the taxes that have been withheld from each check and submit them to the appropriate authority.
- If you have someone internally that is processing your payroll, you may want your CPA to look over what they have done to make sure it is correct. You do not want to pay out too much or too little and you certainly do not want to have the wrong amount of taxes withheld from the employees’ paychecks. Having a second set of eyes look at something never hurts, and could save you money in the long run.
Where do you look for someone to do your payroll processing?
With the importance of payroll processing, you will need to have someone that knows what they are doing to process it correctly. When interviewing someone to keep your books and process your payroll, you will want to hire someone that has experience. There are several software programs you can buy to help you process your payroll, but keep in mind, ultimately, you as the employer are responsible for any errors that may occur. You will find that when asking for references from other employers as to what they use, each person has their preference and for various reasons. If you are unsure or uncomfortable with the responsibilities associated with payroll processing, give Marlandale in Carrollton, TX a call and have them do the work for you.
What is involved in hiring a company to do your Payroll Processing?
If you have decided that you do not want the responsibility or headache of payroll processing and would rather have someone else responsible for it, there are companies out there that do this for a living. You will need to talk with the various companies and see how long they have been in business, what their experience is, do they have a degree – such as a CPA, or degree in accounting? Are they licensed and bonded, since they will have access to your business’ financials you will want to make sure they are reputable. Get references from the company and check them out. Once you have decided on a company, you will need to get a list from them of the information they will need in order to process your payroll and take care of submitting the taxes collected to the proper authorities at the correct time. Marlandale is such a company. They are located in Carrollton, TX and would be happy to handle the responsibility of doing your payroll processing. They have the experience and knowledge needed to put your mind at ease.
Your payroll processing can be one of the easiest elements of your business if you have done your homework and get someone with experience and knowledge to handle it for you.