- Finance and Accounting, Payroll

The Ultimate Payroll FAQ

It’s completely understandable why people have questions about payroll, there has been a lot of media attention around the tax reform changes and what that means to your company’s paycheck so we can go through some FAQ and I think hopefully put everyone at ease a little bit in terms of what this means to your paycheck because really for payroll it’s kind of business as usual the IRS generally updates their tax tables every year anyway so there’s not a whole lot different in terms of what that means to your pay there are some changes and we can we can go through that.

Payroll FAQ

  • What are Payroll Taxes

Payroll taxes include amounts that are taken out of an employee’s paycheck to pay for FICA insurance which is the Federal Insurance Contributions Act. Payroll taxes also include some additional amounts to pay for unemployment insurance and in some states disability insurance. FICA is what pays for Social Security and Medicare the withholding amounts for Social Security are shared equally between the employer and the employee.

  • When to Pay Payroll Taxes

It is important to understand the difference between paying tax and filing a tax return the IRS requires that you pay tax then filed a return which differs from many states that require you to file and pay payroll taxes simultaneously the dollar amount of payroll taxes an employer owes in a given year determines their tax deposit frequency in general if you owe more than $50,000 per year in payroll taxes then you are required to pay your payroll taxes semi-weekly if your payroll taxes are under $50,000 in a year you are a monthly tax depositor semi-weekly depositors must pay the tax by the following wednesday or friday after the employees check date. Monthly depositors are required to pay the tax by the 15th of the following month.

  • How do I Calculate my Payroll Taxes

Whenever you are trying to determine withholding taxes you always need to use the employee’s w-4 form this form will detail all of the information that you need in order to make this calculation we’re going to use this fictitious character John Doe. John is single and he claims only one allowance remember that this information is filled out by the employee so this is the information that you must use when calculating their withholding tax John is paid on a bi-weekly basis which means that he’s paid every other week and his wages for this pay period is 720 dollars so this is the information that we need to use in order to make the calculation. So the first thing that we need to do the first step is that the IRS in publication 15 has given us a percentage method table so it doesn’t matter at this point how many allowances it just matters what pay period you’re using so what you want to do is multiply one withholding allowance by the amounts and you want to multiply that by the number with boating allowance that they have claimed so for example John is paid on a bi-weekly basis so we’re going to use the second line which is one hundred fifty one dollars and ninety cents John has only claimed one allowance so this one hundred and fifty one dollars and ninety cents is what we need to use for John.

Check out http://www.payrollserviceaustralia.com.au for more informations and help.…

Tips for Streamlining Your Payroll
- Payroll

Tips for Streamlining Your Payroll

The perfect payroll service management team will have years of experience in the areas of financial accounting, payroll, outsourcing partners, software support in accounting, and preliminary work on financial statements. Other services available are things such as balance sheet accounting, payroll accounting, and personnel management control, business advice in payroll, creating business plans on a budget, audits, billing/invoicing, payments, and cash management. click here for further details.

It takes a lot to get an efficient and effective payroll department going. There are some processes, however, that can often be simplified and improved to make the department more efficient. If you are looking for a few ways to streamline your payroll, take a look at these ideas:

  1. Keep Your Deadlines in Mind. Corporations have the same deadlines every year. March 15th is when taxes are due and by January 31st, businesses should have all W2s and any other documentation to their employees.
  2. Payroll System Functions Should Be kept up with. Payroll services are more than just handing out checks after counting up hours. You have to tally up lost hours, deal with garnishments, work out health care costs and deal with tons of other issues. A time clock can help with our calculations and can reduce errors, so be sure you look into whether time and attendance software can be working toward your advantage. for related info, visit : http://www.wou.edu/payroll/Tips for Streamlining Your Payroll
  3. Try to Update Payroll Records. Basic info is the key but it isn’t everything. Make sure you keep your systems updated to keep everything in order and tell your employees to come to you if there are any changes to their life that you should be aware of.
  4. If you need Help, Get it. If there is a chance that you could be wrong about a deduction, find a specialist that will know the answer.
  5. Accountants Know Payroll Systems. Banks and CPAs love to crunch numbers and they love to manage payroll—itis what they do. You can always lighten your workload by using Peachtree or QuickBooks or any other accounting software.
  6. Fix Issues Fast. If the time clock breaks get someone in as soon as possible to fix it. Or, if your systems crash, start talking to payroll or your manager about what to do. Don’t leave problems until the last minute as they will often cause more issues down the line.
  7. Outsourced Appropriately. It’s better to have payroll outsourcing specifically for payroll than to try to master a system you aren’t comfortable with. This maximizes your time for something else while also ensuring payroll goes out on time.
  8. Always keep a Separate Account for Your Payroll. Your payroll account should have its own account from all other business accounts.
  9. If Your Company Grows, Your Payroll System Should Grow. Whether this means adding in additional workers, updating systems, or using new software, grow accordingly to accommodate the new challenge that a bigger business brings.
  10. Know the Rules of the Game. This can be a very serious issue because it deals with local, state, and federal agencies, but you also need to lead by example. Get your own time cards in on time, just as your employees are required to.