Do you dread doing payroll because of the headaches, mistakes, and time it takes?
Accounting can be a complicated task. It is vital to take care of this aspect of your business so that you don’t run into penalties or fines for late payments.
Here are some tips on how to do payroll right!
1. The first step to do payroll is to create an Employee Record for each employee.
You might think that payroll is just a way for you to pay your employees, but there’s more than meets the eye. You’ll need an Employee Record and here are some of the things it does:
- It stores information about each employee like their name, address, birth date or hire date;
- The record tracks how often they’ve been paid in both salary and commission-based positions which determines whether they should have taxes taken out before being given a paycheck so as not to get penalized by IRS regulations; and
- Additional important notes you need to know about your employees.
2. Next, you’ll need to enter the hours worked and pay rate for that employee. This will allow you to calculate their total earnings.
3. You can then print out a Payroll Report which shows all of the hours worked and how much was paid in wages.
A Payroll Report is a must-have for any business that needs to keep track of its employees. This report lists all hours worked and how much was paid in wages by each employee. Plus, it is a great way to keep track of time spent on the job. It can help you stay accurate with your taxes throughout the year!
4. It’s important not to let taxes slip your mind!
Make sure you’re using the right tax tables in order for employees’ wage earnings to be correctly taxed and make certain that they are deducted from their take-home pay.
5. Finally, be aware of laws regarding overtime wages.
Keep yourself on the right side of wage law when doing payroll. Be aware that there are laws regarding overtime wages, such as calculating hours and paying for weekend work in advance or after it happens.
Furthermore, we all know, working overtime is expensive. The time and a half that you are required to pay an employee for working more than 8 hours in one day, or 40 hours per week can add up quickly if the company does not have enough money saved in its budget.
And so, It’s important to be aware while doing payroll calculations so that your organization will continue thriving without running into financial trouble later down the line!