As you tasked with employee payroll processing?
Processing payroll can be a complicated task to complete. Proper payroll requires much more than just adding up the hours your employees worked and cutting a check.
To follow all the payroll rules and regulations and stay in compliance, you have to take a series of steps, starting with setting up a business that is legally able to hire and pay employees.
If you are not careful, you can quickly become overwhelmed and make costly mistakes that can put the business at risk.
Fortunately, there is a way to ensure you are processing payroll correctly. By knowing what you need to do and following an effective system, you can quickly become a payroll pro.
If you need to process payroll for your company but aren’t sure where to start, this short and simple guide is for you.
Set Up Your Business
The first step for processing payroll is to set up your business. You need to apply for an EIN, figure out your tax identification information, and make sure you are set up to pay employer tax. This is also a great time to purchase worker’s comp insurance.
Collect Employee Financial Information
Next, you need to collect your employee’s financial information. This should be built into the onboarding process for new hires. You need to collect their W-4 forms, direct deposit, and more.
Choose Your Payroll Schedule
Once you have the information you need, it’s time to choose your payroll schedule. You can pay weekly, every two weeks, monthly, or whatever works for your company. Having a set schedule is essential for creating payroll automation.
Review and Approve Timesheets
Depending on the number of employees you have, you need to start reviewing and approving timesheets a few days before payroll. This is a part of your payroll system that is essential. You can do this manually or use payroll software.
Calculate Payroll
After reviewing and approving the employee timesheets, you need to calculate payroll. This requires you to factor in regular time, overtime, holiday pay, PTO, and more.
Process Payroll
The next step is to process your payroll. You can use an employee payroll processor for the best results. If you want to provide your employees with a convenient way to access their paycheck, consider offering payroll cards for employees.
Consider Outsourcing
Payroll can be a complicated process that quickly becomes overwhelming. For this reason, consider outsourcing this essential task. With outsourcing, you can ensure you are following payroll regulations and processing it most effectively.
This Is the Guide You Need For Your Employee Payroll Processing
By taking these steps, you can complete your employee payroll processing.
Start by setting up your business and collecting employee financial information. You should also choose your payroll schedule, review and approve timesheets, and calculate payroll. Make sure to process the payroll on time and consider outsourcing if you are feeling overwhelmed.
Follow these steps to properly process your payroll.
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