Your human resource is one of the most crucial parts of your business, and you owe it to your employees to make sure that the payroll process is smooth and on schedule. Payroll processing can be a tedious task, especially for small and medium-sized businesses.
However, being a provider of accounting and bookkeeping services over the years, we give you a few things you should know about payroll processing to get started.
What Does Payroll Entail?
This is the business process of paying employees. With this, you calculate employee earnings, factoring out their federal and state payroll taxes. In payroll, you have your business’s financial records of employees, the distribution of their paychecks, and annual records of your employees’ wages.
What Are the Essential Components of Your Payroll?
- Employee Information
They will need to complete Form W-4 as this provides information on an employee’s federal income tax withholding. It also includes the employee’s personal information that is required to help you process payroll and distribute employee paychecks.
- Salaries and Wages
The payroll should consist of their gross pay, employee time, overtime pay, additional income, benefits contributions, and reimbursements, as well as net pay.
Deductions involve the amount removed from an employee’s paycheck for tax or other purposes. This includes the following payroll taxes, payroll withholdings, wage garnishments, as well as benefit deductions.
Do you need help with your employees’ payroll process?
KF Tax & Accounting, P.C. is one of the tax accounting firms in Texas that offers payroll services for small and medium-sized companies.
We not only provide quality tax services in Round Rock, Texas. We can also handle your company’s other accounting and bookkeeping needs.
Contact us today to learn more.