What is payroll management?
Payroll Management can be defined as the administration of the financial record of every employees’ bonus , salary, wages, deductions and net pay.
Every employer, No matter in how much number of workers they employ, they should maintain all the record which pertaining to payroll (like Social security, Fedral unemployment tax and income tax withholding) for at least four years after the tax is paid or becomes due.
Social Security Tax Records:
• The exact amount of each payment subject to FICA tax
• Date and amount of FICA tax that is collected from each payment
• Explanation for any kind of difference
Income Tax Withholding Records:
• Date and Market value of noncash compensations
• Information about all the payments that made under sick-pay plans
• Withholding exemption of all the certificates
• All the Agreements regarding the voluntary withholding of extra cash
• Dates and payments to employees for all the non-business services
• All the statements of tips that are received by employees
• Requests for different type of computation of withholding taxes
• Social security ,name, address, and number of each & every employee
• Date and amount of each payment for compensation
• Amount of wages which is subject to withholding in each payment
• Amount of withholding tax that is collected from each payment
• Reason that the taxable amount is lesser than the total payment
Payroll management for a small business is a simple task with the help of a good one-write system.
Payroll management can be very difficult for the new business owners. There are many federal and state laws which regulating what you have to track related to the payroll. Failure in this process could result in heavy fines.
We've come to the end of our blog we hope we've helped you better understand how payroll works. For more information about payroll, payroll management and payroll software please do not hesitate to contact us at Techneel IT Services PVT LTD.
