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.
Image
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.
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.
Image Image
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.
Image
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.
Image
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.
What are the benefits of Outsourcing Payroll?
Looking for payroll processing services? Call us or email us today to find out how we can help you.
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

Quick Link

Facebook


InTune Outsourcing was founded in 2007 as an outsourcing and business consultancy firm geared to the needs of small and medium sized enterprises.

Find Out More About Us


About InTune Outsourcing Services

Quick Link

Facebook


InTune Outsourcing was founded in 2007 as an outsourcing and business consultancy firm geared to the needs of small and medium sized enterprises.

Find Out More About Us


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.

Find Out More About Us

Facebook