Want To Step Up Your PAYROLL MANAGEMENT?
The payroll system has evolved with the technology, from the punch card system to online payroll software. From calculating the working hours to filing tax returns, an online payroll system has helped the business in reducing the time and effort in handling the payroll processing. The new generation payroll software has all the features that an organization needs for managing everything related to its employees.
So let’s first get into the basics
What is a payroll management system?
The term payroll deals with several different aspects of employee handling. One of the important aspects is the calculation and releasing of payments to the employees of your company. Payroll management includes various tasks starting with the onboarding of the employees to the company’s pay policies. In a nutshell, handling the employee’s financial records.
Having an effective payroll system is one of the important things irrespective of the size and nature of the business. A successful payroll implementation ensures timely and accurate payment to employees. It helps businesses to stay top of all their legal and regulatory compliances. A well-maintained payroll system protects the employer’s and employee’s interests.
Startup guide for payroll management system
Here are some basic tips that can help a business to handle payroll management.
Differentiate between employees and contractors:
A startup often goes easy by hiring contractors for specific projects. So, such startups must understand the difference between the full-time employees on their payroll and contractual employees. The tax reporting is different; the regular employees need to fill out form W-4 whereas the contractual ones W-9 form.
For a salaried employee, you will responsible for withholding tax money from their paychecks and pass on to the government for mandate payments such as social security and income tax. While the contractors will be individually responsible for paying taxes on their income.
Therefore several other rules and laws contrast a regular employee from a freelancer contractor.
Creating a Payroll Schedule:
Payroll forms a substantial part of expenses incurred each month for the startup. When you make payment of the salaries to the employees, the cash flow of the business will get affected. You have to decide whether you are paying bi-weekly, weekly, monthly, or bi-monthly?
A monthly payment might work well if you have a timely rolling in of the accounts receivable towards the month-end. But again, employee expectations and standard industry practice also need to consider. Thus before formulating a payroll schedule analyze your financial needs and cash flows. And the rest of payroll processing gets easy with payroll software.
Get the overtime compensation correct.
As an employer, it becomes important on highly important on your part to pay fair to the employee for overtime. You must know the rules and regulations of overtime pay and ensure complete adherence to avoid penalties, back pay, and interest. You must know about the standard rate and overtime pay regulation.
Best Payroll Management Services:
For managing payment to the employees to ensure the tax commitments; the bigger companies usually rely on enterprise payroll management service along with payroll staff onboard.
Having such a system in place makes payroll processing stress-free. But such a set-up needs a huge resource at your disposal. And no worries if you don’t have the kind of resources, need for such implementation.
Outsource it to payroll management services like Meru Accounting.
We at Meru Accounting have helped many clients in managing their payroll. We have professional experts who have years of experience in setting and handling payroll processing. Our team is well-equipped with the latest payroll tools and software.
Simplify your payroll management with Meru Accounting.
Book an obligation appointment today.
