Payroll
Spend less time running payroll for your employees so you can focus on growing your business.
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Payroll required mandatory
Advantages of using Payroll
- Your accounting department will be able to create reports and financial documents easily.
- This helps you graph the financial data to help you create a forecast.
- It helps to accelerate all aspects of the payroll process with a number of automated functions.
- It is convenient to save the records to various databases available online.
- There is great potential to save money … especially once you can use the software quickly and efficiently.
Pricing
(Simple & Clear Pricing. No Hidden Charges)
| Government Fee | Rs 0 |
| Professional Fees | Rs 1,459 |
| Goods & Service Tax | Rs 00 |
| Total Cost | Rs 1459 |
What is payroll?
(All you need to know)
Payroll is the total of all compensation a business must pay to its employees for a set period of time or on a given date. Usually, it is managed by the accounting or human resources department of a business. Small-business payrolls may be handled directly by the owner or an associate. Increasingly, payroll is outsourced to specialized firms that handle paycheck processing, employee benefits and insurance, and accounting tasks such as tax withholding.
1. A business’s financial records of employees.
2. The distribution of employee paychecks.
3. Annual records of employee wages.
How to calculate payroll
Keep in mind that your business and your local laws may affect how you calculate payroll.
- Calculate your employee’s gross pay
- Make pre-tax deductions
- Deduct taxes (FICA, unemployment, and income taxes)
- Make voluntary deductions
- Determine the employee’s net profit
What is the payroll process?
Again, payroll has a lot of moving parts. In this section, we’ll break what is payroll down to a science.
But before you can begin to run payroll, you need to make some decisions. Among other responsibilities, you must:
->Determine your pay frequency (e.g., biweekly)
->Decide how to pay employees (e.g., direct deposit)
->Register for an Employer Identification Number (EIN) and state accounts (e.g., state unemployment insurance)
->Create an Electronic Federal Tax Payment System (EFTPS) account
And each time you hire an employee, you need to decide whether they are exempt or nonexempt from overtime wages. You must also collect Form W-4 (among other new employee forms) to properly run and distribute payroll.
Without further ado, take a look at what is payroll composed of on a micro-level.
To run payroll, you need to track your employees’ time. This includes: Regular hours worked Time off (e.g., paid time off) Overtime hours (i.e., time and a half) Tracking employee hours ensures you pay your employees the proper amount. Collect timesheets from employees that detail how many hours they worked during the pay period and whether they took time off.
You may have salaried employees, hourly employees, or both. Once you know how many hours they worked, you can calculate their gross wages. To calculate your salaried employees’ gross wages, divide the number of pay periods in the year by their annual salary. For example, you give an employee a yearly salary of $50,000 and pay them weekly. Because there are 52 weeks in the year, the employee’s weekly gross wages are $961.54 ($50,000 annual salary / 52 weeks). Remember to account for any overtime if the employee is nonexempt and works over 40 hours in the workweek.
Pre-tax deductions: First, determine if an employee has pre-tax deductions. If they do, subtract them from the employee’s gross pay before calculating applicable taxes. Taxes: Next, it’s time to calculate the employee’s tax withholding. You must deduct the following taxes from an employee’s pay: Federal income tax , Social Security tax, Medicare tax, State and local income taxes (if applicable) State-specific taxes. Post-tax deductions: If the employee has any post-tax deductions, withhold them after calculating employee taxes
Before you pay employees, verify that your information and calculations are correct. Once you’ve approved payroll, it’s time to pay employees. You might pay employees via: Direct deposit, Paychecks, Mobile wallet, Pay cards, Cash. When you pay employees, you might also provide paper or digital pay stubs. That way, employees can see their payroll information.
Think paying employees is the end of the payroll process? Not so fast. You also need to file and deposit taxes with the IRS and, if applicable, your state and local governments. Deposit federal income, Social Security, and Medicare taxes with the IRS. You must deposit them monthly or semiweekly, depending on your deposit schedule. To report the taxes, file Form 941, Employer’s Quarterly Federal Tax Return, or Form 944, Employer’s Annual Federal Tax Return. Deposit state and local taxes depending on the tax agencies’ rules. The forms you must file to report the taxes vary, too. Last but not least, remember to deposit and file employer-only taxes, like federal unemployment tax and state unemployment tax.
The Fair Labor Standards Act (FLSA) and IRS require you to keep detailed records for, well, a while. So, how long do you need to keep payroll and tax records? At least 2 years Long to Keep Timecards and other records on which wage computations are based . At least 3 years long to keep record of Payroll. At least 4 years Keep records of Employment taxes.
More Question? A specialist is here to help
Call us at: +91 820 956 9514 or
Email us: info@taxtorium.com
Frequently Asked Questions
What are some valuable payroll terms to know?
- Deductions
- Gross pay
- Net pay
- Compensation
- Pay stub
How often should I run payroll?
State laws and collective bargaining agreements with unions may dictate how often a business must run payroll. If such requirements don’t apply to them, employers may choose a payroll calendar that works best for them and their employees. The most common are weekly, bi-weekly and semi-monthly.
How does Payroll work?
Payroll companies transfer dollars out of businesses designated bank account and transfer funds to the appropriate parties. Employers are required to pay employee wages and withhold the proper amount of taxes form each employee check to pay local, state, and federal government. Also, companies must pay employment taxes at the state (sometimes local taxes) and national level in addition to filing quarterly tax reports. If you choose to outsource Payroll to a third party, they handle all those tax obligations on your behalf.
Can I assign restricted access to our payroll account to a manager?
You want to restrict an employee’s access to wages and salary information; you can do that. You can assign a supervisor or manager to oversee and only enter the employee’s hours worked per pay period if you don’t want anyone looking at employee addresses and social security numbers, you can prevent them from doing so.
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