Payroll Processing
Payroll Processing
Payroll processing in HR is an elaborate process that involves a lot more than salary calculations.
The process can be intimidating if you do not know how to go about it. It is an essential business function that involves arriving at the ‘net pay’ of the employees after the adjustment of necessary taxes and deductions. For an efficient payroll management process, the payroll administrator needs to plan the payroll process step-by-step.
The Payroll Process
The payroll process begins after hiring the first employee. Employees work according to the agreed pay period, and you must pay them based on the employment terms, calculation of the hours they work, and their pay rate. Before giving the employee a paycheck, however, you need to withhold contribution amounts to social security, taxes, insurance, and compulsory retirement savings plan.
Net pay is the amount employees receive after you subtract their tax withholdings and benefit deductions from their gross pay (hours worked times the hourly pay rate or salary per period). After finishing the calculation of the net pay, employees should be paid in the form of a cheque, direct deposit, or cash.
It's important to keep in mind that you might be required to document the payment information, including hours worked, earnings, and deductions, on an employee pay stub. If employers violate state pay laws, they can be held liable for numerous penalties and fines.
Net pay is the amount employees receive after you subtract their tax withholdings and benefit deductions from their gross pay (hours worked times the hourly pay rate or salary per period). After finishing the calculation of the net pay, employees should be paid in the form of a cheque, direct deposit, or cash.
It's important to keep in mind that you might be required to document the payment information, including hours worked, earnings, and deductions, on an employee pay stub. If employers violate state pay laws, they can be held liable for numerous penalties and fines.
How to Process Payroll: Manual, Software, or Service
The length of time it takes to process payroll depends on the way you process it. Some small businesses manually track employee hours and earnings on a spreadsheet, which is both time-consuming and likely to produce errors. Others use free software or an online payroll calculator.
Assuming all payroll processing is done manually, it may take the company a day or so to process payroll for just a few employees. This occur due to the time required to add up time cards, calculate pay and overtime, and process deductions manually. You also have to set aside taxes that have been deducted for each employee so they can be paid.
Using a payroll processing software is always a good recommendation because of the numerous steps required to process payroll the right way. Alternatively, it can be provided as a service by a financial firm to ensure that your employees’ paychecks are processed quickly and correctly based on local laws.
“Software” and “service” are not the same thing. The first is a platform that you manage your payroll operations through; “service” references customer, IT, and other related support that can come instead or in addition to a software package. The best payroll services pay your employees and your payroll taxes automatically, saving you hours of manual work each pay cycle.
Assuming all payroll processing is done manually, it may take the company a day or so to process payroll for just a few employees. This occur due to the time required to add up time cards, calculate pay and overtime, and process deductions manually. You also have to set aside taxes that have been deducted for each employee so they can be paid.
Using a payroll processing software is always a good recommendation because of the numerous steps required to process payroll the right way. Alternatively, it can be provided as a service by a financial firm to ensure that your employees’ paychecks are processed quickly and correctly based on local laws.
“Software” and “service” are not the same thing. The first is a platform that you manage your payroll operations through; “service” references customer, IT, and other related support that can come instead or in addition to a software package. The best payroll services pay your employees and your payroll taxes automatically, saving you hours of manual work each pay cycle.
Payroll processing in HR is an elaborate process that involves a lot more than salary calculations.
The process can be intimidating if you do not know how to go about it. It is an essential business function that involves arriving at the ‘net pay’ of the employees after the adjustment of necessary taxes and deductions. For an efficient payroll management process, the payroll administrator needs to plan the payroll process step-by-step.
The Payroll Process
The payroll process begins after hiring the first employee. Employees work according to the agreed pay period, and you must pay them based on the employment terms, calculation of the hours they work, and their pay rate. Before giving the employee a paycheck, however, you need to withhold contribution amounts to social security, taxes, insurance, and compulsory retirement savings plan.
Net pay is the amount employees receive after you subtract their tax withholdings and benefit deductions from their gross pay (hours worked times the hourly pay rate or salary per period). After finishing the calculation of the net pay, employees should be paid in the form of a cheque, direct deposit, or cash.
It's important to keep in mind that you might be required to document the payment information, including hours worked, earnings, and deductions, on an employee pay stub. If employers violate state pay laws, they can be held liable for numerous penalties and fines.
Net pay is the amount employees receive after you subtract their tax withholdings and benefit deductions from their gross pay (hours worked times the hourly pay rate or salary per period). After finishing the calculation of the net pay, employees should be paid in the form of a cheque, direct deposit, or cash.
It's important to keep in mind that you might be required to document the payment information, including hours worked, earnings, and deductions, on an employee pay stub. If employers violate state pay laws, they can be held liable for numerous penalties and fines.
How to Process Payroll: Manual, Software, or Service
The length of time it takes to process payroll depends on the way you process it. Some small businesses manually track employee hours and earnings on a spreadsheet, which is both time-consuming and likely to produce errors. Others use free software or an online payroll calculator.
Assuming all payroll processing is done manually, it may take the company a day or so to process payroll for just a few employees. This occur due to the time required to add up time cards, calculate pay and overtime, and process deductions manually. You also have to set aside taxes that have been deducted for each employee so they can be paid.
Using a payroll processing software is always a good recommendation because of the numerous steps required to process payroll the right way. Alternatively, it can be provided as a service by a financial firm to ensure that your employees’ paychecks are processed quickly and correctly based on local laws.
“Software” and “service” are not the same thing. The first is a platform that you manage your payroll operations through; “service” references customer, IT, and other related support that can come instead or in addition to a software package. The best payroll services pay your employees and your payroll taxes automatically, saving you hours of manual work each pay cycle.
Assuming all payroll processing is done manually, it may take the company a day or so to process payroll for just a few employees. This occur due to the time required to add up time cards, calculate pay and overtime, and process deductions manually. You also have to set aside taxes that have been deducted for each employee so they can be paid.
Using a payroll processing software is always a good recommendation because of the numerous steps required to process payroll the right way. Alternatively, it can be provided as a service by a financial firm to ensure that your employees’ paychecks are processed quickly and correctly based on local laws.
“Software” and “service” are not the same thing. The first is a platform that you manage your payroll operations through; “service” references customer, IT, and other related support that can come instead or in addition to a software package. The best payroll services pay your employees and your payroll taxes automatically, saving you hours of manual work each pay cycle.
What are the benefits of Outsourcing Payroll?
What are the benefits of Outsourcing Payroll?
It is a time-consuming effort to undertake the payroll processing within your business. Tracking of garnishments, new hires and terminations, benefit deductions, paid time off as well as state regulation changes can be frustrating tasks.
Significant labor hours are spent every year preparing pay slips and ensuring that they are sent out in a timely manner. To have the payroll process as a whole outsourced to a third party, enables the employers to focus on their core business and frees up the business owner, human resources, or accounting personnel to work on strategic tasks that could ultimately affect the company's bottom line.
This is true whether the number of people employed by your business are 5 or 500, attending to payroll demands a great deal of time and attention to detail. Since the pay period happens on a monthly or a weekly basis, the business owner is required to input critical amounts of data and double-checking for any keying errors, this constitutes time taken away from tasks a small business owner could attend to.
It's important that these repetitive tasks are not hours taken away from a key management or owner’s daily productivity. Outsourcing payroll immediately frees up these precious hours.
Significant labor hours are spent every year preparing pay slips and ensuring that they are sent out in a timely manner. To have the payroll process as a whole outsourced to a third party, enables the employers to focus on their core business and frees up the business owner, human resources, or accounting personnel to work on strategic tasks that could ultimately affect the company's bottom line.
This is true whether the number of people employed by your business are 5 or 500, attending to payroll demands a great deal of time and attention to detail. Since the pay period happens on a monthly or a weekly basis, the business owner is required to input critical amounts of data and double-checking for any keying errors, this constitutes time taken away from tasks a small business owner could attend to.
It's important that these repetitive tasks are not hours taken away from a key management or owner’s daily productivity. Outsourcing payroll immediately frees up these precious hours.
Working with a payroll provider can greatly reduce the direct costs of processing payroll. Maintaining a robust payroll department is affordable to big companies. However, having an in-house payroll process for a small or medium sized business is a money burner.
Assuming a business has fewer than 20 employees, there’s a very good chance that money can be saved by outsourcing the payroll operations. This is very easy to realize, when a business owner starts to calculate how many labor hours their employees are dedicating to payroll-related activities which include:
For a small business owner trying to do payroll in-house, the cost of the time spent is even greater. If the payroll process is outsourced, you don’t have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation or wanting to request a possible maternity leave that you have to pay for.
Assuming a business has fewer than 20 employees, there’s a very good chance that money can be saved by outsourcing the payroll operations. This is very easy to realize, when a business owner starts to calculate how many labor hours their employees are dedicating to payroll-related activities which include:
- calculating payroll each time period
- printing, signing, distributing paychecks
- computer software and program maintenance
- training and support
- keeping up with changes in tax rates or laws
- preparing and remitting payroll taxes and returns to government agencies
- garnishments
- new hire reporting
- generating reports for in-house and accountant use
For a small business owner trying to do payroll in-house, the cost of the time spent is even greater. If the payroll process is outsourced, you don’t have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation or wanting to request a possible maternity leave that you have to pay for.
Penalties for errors, omissions or late payroll tax filings can be very costly. If mistakes occur during the payroll process, not only does it result in angry employees, it may also result in not reporting timely or accurately to the government, which is regarded as red flags to the Tax office.
Business owners, especially small ones, aren’t experts in the challenging world of government tax regulations. Furthermore, they are legally responsible for any cases of misrepresentation or failure to accurately report employment taxes to state government agencies. Small mistakes may lead to audits and penalties, situations no business wants or needs.
Rules and regulations set by the government are always changing and business owners can’t be expected to stay on top of these changes. Financial firms that offer payroll processing services, on the other hand, must stay current with the rules, regulations and changes in tax rates. Most of these payroll providers calculate payroll taxes, manage filings and payments and will assume the cost of penalties due to incorrect calculations or late payments so long as you provide the necessary information and funds on time. They also keep updated with the latest state, local, and industry-specific regulation changes.
Business owners, especially small ones, aren’t experts in the challenging world of government tax regulations. Furthermore, they are legally responsible for any cases of misrepresentation or failure to accurately report employment taxes to state government agencies. Small mistakes may lead to audits and penalties, situations no business wants or needs.
Rules and regulations set by the government are always changing and business owners can’t be expected to stay on top of these changes. Financial firms that offer payroll processing services, on the other hand, must stay current with the rules, regulations and changes in tax rates. Most of these payroll providers calculate payroll taxes, manage filings and payments and will assume the cost of penalties due to incorrect calculations or late payments so long as you provide the necessary information and funds on time. They also keep updated with the latest state, local, and industry-specific regulation changes.
Researching and studying the constantly changing regulations, withholding rates, and government forms are very time-consuming tasks, and most business owners and their payroll related staff simply cannot allocate the time for that.
A small business can take advantage of an accounting firm’s expertise by outsourcing payroll, much like our clients engage us at InTune to take care of their payroll needs, an advantage that was previously available only to big companies.
In general, the best payroll companies employ a team of experts who handle many areas of Human Resources and Payroll. For example, a proper financial firm would have a benefits department, this department would handle the administration of benefits and deductions in the payroll system.
Furthermore, we have human resource experts who would help in employee issues and HR strategy. It is important for any business owner to engage a qualified team of experts who can administer all the aspects of the company HR and payroll needs.
A small business can take advantage of an accounting firm’s expertise by outsourcing payroll, much like our clients engage us at InTune to take care of their payroll needs, an advantage that was previously available only to big companies.
In general, the best payroll companies employ a team of experts who handle many areas of Human Resources and Payroll. For example, a proper financial firm would have a benefits department, this department would handle the administration of benefits and deductions in the payroll system.
Furthermore, we have human resource experts who would help in employee issues and HR strategy. It is important for any business owner to engage a qualified team of experts who can administer all the aspects of the company HR and payroll needs.
The processing of payroll is considered by many to be a complex and potentially risky business operation. There is always a risk of identity theft, embezzlement of funds, or tampering with company files for personal gain even with long time trusted employees. Even when using an in-house payroll software, there exists an evident risk: How safe and secure is payroll data on the company’s server or network? This question is very real and it can consume a business owner’s energy and attention. Do business owners have the time and energy to closely supervise their business’s payroll for time and rate abuses and other unethical activities?
A lot of the payroll services have technologies that can spot and alert clients to various types of payroll fraud. A quality payroll provider invests in state-of-the-art systems for storing and protecting data while offering a redundant backup and multiple server locations. These offers are necessary to ensure the safety of the service provided to clients.
A lot of the payroll services have technologies that can spot and alert clients to various types of payroll fraud. A quality payroll provider invests in state-of-the-art systems for storing and protecting data while offering a redundant backup and multiple server locations. These offers are necessary to ensure the safety of the service provided to clients.
Looking for payroll processing services? Call us or email us today to find out how we can help you.
It is a time-consuming effort to undertake the payroll processing within your business. Tracking of garnishments, new hires and terminations, benefit deductions, paid time off as well as state regulation changes can be frustrating tasks.
Significant labor hours are spent every year preparing pay slips and ensuring that they are sent out in a timely manner. To have the payroll process as a whole outsourced to a third party, enables the employers to focus on their core business and frees up the business owner, human resources, or accounting personnel to work on strategic tasks that could ultimately affect the company's bottom line.
This is true whether the number of people employed by your business are 5 or 500, attending to payroll demands a great deal of time and attention to detail. Since the pay period happens on a monthly or a weekly basis, the business owner is required to input critical amounts of data and double-checking for any keying errors, this constitutes time taken away from tasks a small business owner could attend to.
It's important that these repetitive tasks are not hours taken away from a key management or owner’s daily productivity. Outsourcing payroll immediately frees up these precious hours.
Significant labor hours are spent every year preparing pay slips and ensuring that they are sent out in a timely manner. To have the payroll process as a whole outsourced to a third party, enables the employers to focus on their core business and frees up the business owner, human resources, or accounting personnel to work on strategic tasks that could ultimately affect the company's bottom line.
This is true whether the number of people employed by your business are 5 or 500, attending to payroll demands a great deal of time and attention to detail. Since the pay period happens on a monthly or a weekly basis, the business owner is required to input critical amounts of data and double-checking for any keying errors, this constitutes time taken away from tasks a small business owner could attend to.
It's important that these repetitive tasks are not hours taken away from a key management or owner’s daily productivity. Outsourcing payroll immediately frees up these precious hours.
Working with a payroll provider can greatly reduce the direct costs of processing payroll. Maintaining a robust payroll department is affordable to big companies. However, having an in-house payroll process for a small or medium sized business is a money burner.
Assuming a business has fewer than 20 employees, there’s a very good chance that money can be saved by outsourcing the payroll operations. This is very easy to realize, when a business owner starts to calculate how many labor hours their employees are dedicating to payroll-related activities which include:
For a small business owner trying to do payroll in-house, the cost of the time spent is even greater. If the payroll process is outsourced, you don’t have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation or wanting to request a possible maternity leave that you have to pay for.
Assuming a business has fewer than 20 employees, there’s a very good chance that money can be saved by outsourcing the payroll operations. This is very easy to realize, when a business owner starts to calculate how many labor hours their employees are dedicating to payroll-related activities which include:
- calculating payroll each time period
- printing, signing, distributing paychecks
- computer software and program maintenance
- training and support
- keeping up with changes in tax rates or laws
- preparing and remitting payroll taxes and returns to government agencies
- garnishments
- new hire reporting
- generating reports for in-house and accountant use
For a small business owner trying to do payroll in-house, the cost of the time spent is even greater. If the payroll process is outsourced, you don’t have to worry about your payroll processing company calling in sick, resigning, wanting to take a vacation or wanting to request a possible maternity leave that you have to pay for.
Penalties for errors, omissions or late payroll tax filings can be very costly. If mistakes occur during the payroll process, not only does it result in angry employees, it may also result in not reporting timely or accurately to the government, which is regarded as red flags to the Tax office.
Business owners, especially small ones, aren’t experts in the challenging world of government tax regulations. Furthermore, they are legally responsible for any cases of misrepresentation or failure to accurately report employment taxes to state government agencies. Small mistakes may lead to audits and penalties, situations no business wants or needs.
Rules and regulations set by the government are always changing and business owners can’t be expected to stay on top of these changes. Financial firms that offer payroll processing services, on the other hand, must stay current with the rules, regulations and changes in tax rates. Most of these payroll providers calculate payroll taxes, manage filings and payments and will assume the cost of penalties due to incorrect calculations or late payments so long as you provide the necessary information and funds on time. They also keep updated with the latest state, local, and industry-specific regulation changes.
Business owners, especially small ones, aren’t experts in the challenging world of government tax regulations. Furthermore, they are legally responsible for any cases of misrepresentation or failure to accurately report employment taxes to state government agencies. Small mistakes may lead to audits and penalties, situations no business wants or needs.
Rules and regulations set by the government are always changing and business owners can’t be expected to stay on top of these changes. Financial firms that offer payroll processing services, on the other hand, must stay current with the rules, regulations and changes in tax rates. Most of these payroll providers calculate payroll taxes, manage filings and payments and will assume the cost of penalties due to incorrect calculations or late payments so long as you provide the necessary information and funds on time. They also keep updated with the latest state, local, and industry-specific regulation changes.
Researching and studying the constantly changing regulations, withholding rates, and government forms are very time-consuming tasks, and most business owners and their payroll related staff simply cannot allocate the time for that.
A small business can take advantage of an accounting firm’s expertise by outsourcing payroll, much like our clients engage us at InTune to take care of their payroll needs, an advantage that was previously available only to big companies.
In general, the best payroll companies employ a team of experts who handle many areas of Human Resources and Payroll. For example, a proper financial firm would have a benefits department, this department would handle the administration of benefits and deductions in the payroll system.
Furthermore, we have human resource experts who would help in employee issues and HR strategy. It is important for any business owner to engage a qualified team of experts who can administer all the aspects of the company HR and payroll needs.
A small business can take advantage of an accounting firm’s expertise by outsourcing payroll, much like our clients engage us at InTune to take care of their payroll needs, an advantage that was previously available only to big companies.
In general, the best payroll companies employ a team of experts who handle many areas of Human Resources and Payroll. For example, a proper financial firm would have a benefits department, this department would handle the administration of benefits and deductions in the payroll system.
Furthermore, we have human resource experts who would help in employee issues and HR strategy. It is important for any business owner to engage a qualified team of experts who can administer all the aspects of the company HR and payroll needs.
The processing of payroll is considered by many to be a complex and potentially risky business operation. There is always a risk of identity theft, embezzlement of funds, or tampering with company files for personal gain even with long time trusted employees. Even when using an in-house payroll software, there exists an evident risk: How safe and secure is payroll data on the company’s server or network? This question is very real and it can consume a business owner’s energy and attention. Do business owners have the time and energy to closely supervise their business’s payroll for time and rate abuses and other unethical activities?
A lot of the payroll services have technologies that can spot and alert clients to various types of payroll fraud. A quality payroll provider invests in state-of-the-art systems for storing and protecting data while offering a redundant backup and multiple server locations. These offers are necessary to ensure the safety of the service provided to clients.
A lot of the payroll services have technologies that can spot and alert clients to various types of payroll fraud. A quality payroll provider invests in state-of-the-art systems for storing and protecting data while offering a redundant backup and multiple server locations. These offers are necessary to ensure the safety of the service provided to clients.
Looking for payroll processing services? Call us or email us today to find out how we can help you.
Every SME Can Become Large
InTune Outsourcing - Creating Financially Driven Businesses and Entrepreneurs.
Every SME Can Become Large
InTune Outsourcing - Creating Financially Driven Businesses and Entrepreneurs.
About InTune Outsourcing Services
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SME Consulting Firm of the Year
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InTune Outsourcing was founded in 2007 as an outsourcing and business consultancy firm geared to the needs of small and medium sized enterprises.
About InTune Outsourcing Services
Quick Link
InTune Outsourcing was founded in 2007 as an outsourcing and business consultancy firm geared to the needs of small and medium sized enterprises.
SME Consulting Firm of the Year
Social Media
About InTune Outsourcing Services
InTune Outsourcing was founded in 2007 as an outsourcing and business consultancy firm geared to the needs of small and medium sized enterprises.
SME Consulting Firm of the Year