The payroll of a company is a list of all its employees who receive a salary, and it also states the amounts each individual receives.
It shows the amount they earn before all the monthly deductions, and can also show the total earnings of all employees for that company, for a full financial year. Read more here https://www.thebalancesmb.com/what-is-payroll-398399 for a better understanding of what it means to be involved in payroll.
How does Payroll work?
The process essentially begins the minute you have hired your first employee. Each works for a set pay period for which they get a salary, based on the number of hours they’ve worked and rate per hour.
This total amount is known as gross pay. However, there are a few deductions that get taken off for tax, insurance or unemployment benefits. Once these have been taken off, the final amount paid to the employee is known as net pay.
The whole process can be quite quick and simple if you choose to use a payroll software system. This is all calculated through the program service and pays the employees and all taxes automatically, saving a headache and heaps of time.
If you are still old school and are manually capturing all the hours of all employees, then processing just a few staff could take up to a few days. And on top of it, you need to put the funds aside to pay the federal tax.
What is a Payroll job?
The sole purpose of a payroll officer is to make sure that your staff gets their correct wages and on the designated calendar dates. You can either use an outsource company to come in and do the finances or have an in-house payroll officer who manages all the employee’s details.
There is a lot a responsibility that comes with the job. Besides the fact that you are handling the livelihood of people, but you are a representation to the staff on how well the business is run on a whole. You are a reflection of the business, and that of the owner and shows the management skills in decision making.
5 Benefits of using Payroll software.
- Speed. This is vital, and with the program, calculations are done efficiently and swiftly and no human errors to worry about. Read this guide and break down of the payroll system and see the ins and outs of how it works.
- Accuracy. When time is of the essence it’s easy to make a simple miscalculation, using the software rules this out and you can relax in knowing your payslips will be correct.
- Less effort. By simply inputting a few figures, you can work out any holiday pay or bonuses due, and it takes a couple of minutes.
- Standing Order. You can set up your system to do a specific task on a set date, such as the end of year report, and then a reminder in place to know it’s done.
- Tax knowledge. You take out this need to fully understand how it all works, by setting up the percentage figures from the get-go, it’s automatically worked out for you.
Choosing a Payroll Service.
Each program offers a different level of service, make sure you know what you are looking for and the features you require. Is the software easy to use? You don’t want to be stuck not knowing what’s going on at all times, this is the reason for the software in the first place is it not? Ease.
Look for a service that isn’t going to cost the earth, but still has a reliable reputation. You can get great help and advice from the Massachusetts Payroll Company who have many years’ experience in the business and customer satisfaction.
Can you do Payroll yourself?
While yes you can do payroll yourself, it’s not recommended. You might have full control by doing it manually and save the cost of hiring in a professional or purchasing a software program, but it can also mean not having someone to check your calculations.
There is an increased chance of making mistakes, and those errors could lead to fines.
Life is too short to worry about fines, let someone else have the stress and order yourself another cocktail instead.