Payroll Processing Is So Much More Than Just Calculating The Pay Of Each Employee

There are several tasks involved in payroll processing and this process starts from the first day itself. Each new employee must have new hire forms signed and placed in a specific file. To help set up payroll, there is a complete checklist of tasks that must be completed and decisions that must be made about how employees will be paid. Payroll is processed at the end of each payroll period, either weekly, bi-weekly, semi-monthly or monthly. The first task is to prepare a pay check for each employee. To do this, the concerned person must calculate the gross pay for the employee, based on whether this person is salaried or hourly. Then, deductions for federal income tax (withholding), social security and health insurance pay deductions, state withholding and other deductions agreed by the employee are taken into consideration. After paycheck calculations are done, there are some other tasks to complete before the payroll process for that pay period is complete. The payroll departmenttotals all the withholding for all employees and set aside this total to be paid later, through payroll tax deposits.Depending on the size of payroll, payroll tax deposits are made to the IRS on a semi-weekly or monthly basis for the amounts withheld from employee pay for federal and state income taxes; the amounts deducted from employee pay for social security and health insurance; and amount owed by the employer for social security and health insurance. Payroll tax deposit payments are usually made on Form 8109 or using the IRS electronic filing system. In addition to federal withholding and Social Security/Medicare deduction payments, there are payments made for federal unemployment tax on a regular basis as well as payroll tax deposits made to state and possibly the locality in addition to federal payroll tax deposits.

Businesses are also required to submit payroll tax reports on a regular basis. They submit a quarterly report to the IRS on Form 941 showing the amount of payroll tax liability and the amounts they have paid on this liability during the previous quarter. They also submit state unemployment and worker's compensation reports. All this shows that payroll processing is so much more than just calculating the pay of employees. Therefore, it is advised to hire payroll outsource services in Delhi NCR for operational efficiency. There are quite a couple of good human resource consultancy services in Delhi NCR that deal in same.

Source : articlesbase.com