If you want to avoid employee disputes, you need to make sure that employees are paid. This can be more easily done when you employ a third party to perform payroll. “Doing payroll”, in the simplest terms, is a process that businesses perform to pay employees. The calculation of checks may be done by electronic or physical means.
Calculating the Payroll: An Involved Process
Today, most payroll services in Tulsa are fulfilled by accounting companies through digital technology. When undertaking a payroll assignment, a CPA or bookkeeper must record each employee’s wage or salary as well as withholdings, deductions, or bonuses. Pay for time that was not worked may include sick time, vacation pay, or holiday pay.
Payroll services record the total employee earnings for a fiscal year for a business. Therefore, this type of service must be done by a bookkeeping or accounting professional who is familiar with all the details that go into the task.
For instance, employees may be paid a salary or an hourly wage. If they are paid on salary, the amount that they receive is the same every pay date. Any calculations, including taxes, are based on the employee’s gross pay. Employees are paid weekly, bi-weekly, twice a month, or monthly.
Subtracting the Withholdings
Providers of payroll services calculate the employee’s pay by withholding state and federal income taxes, and FICA taxes, which include Medicare and Social Security. Employers may also deduct other amounts such as health plan contributions or contributions for retirement plan accounts. Union dues at plants may also be subtracted from the payroll amount.
Payroll deductions and withholdings can become involved and are therefore better determined by an experienced accountant or bookkeeper. Regardless of how the recordings are made, you need to ensure that you stay compliant with the tax law.
Learn More About Payroll and Bookkeeping Services Online
That is why it is better to turn this type of task over to an experienced accounting professional. Learn more about payroll and bookkeeping services for your company by contacting well-recognized professionals such as Muret CPA PLLC. Stay organized financially and reduce the chance of employee disputes. You can also follow them on Twitter.