Introduction to accounting for the payroll function

It is important to note that accounting for your payroll deals with the proper preparation of pay checks, compliance related form filings

London, United Kingdom (prHWY.com) October 4, 2012 - It is important to note that accounting for your payroll deals with the proper preparation of pay checks, compliance related form filings with Federal and State authorities, disbursements to employees and agencies, and writing journals to account for these transactions. The fact remains that no organization can survive in business without employing an experienced person who maintains this important function. This is a most critical aspect of the business that requires attention to detail and record safeguarding as it deals with highly sensitive employee data such as social security numbers. In addition a detailed description of business fringe benefits and employees' wages and tax withholding must be complied with and set up properly. A job description should be included for each and every employee. If the owner decides to hire someone to do this work it is critical to carefully select an expert and run a background check to ensure they have no problem histories. The owner has other options available as to out-source this function if he should so decide to a payroll bureau or an accounting firm that is licensed by the state. This article gives employers basic information if they intend to keep this function internal on how to choose the best personnel and what they are expected to meet compliance wise.

To compile a payroll a critical first step is determining if an employee is overtime exempt or not. For example, if the employee is paid by the hour and if they should work more than a stipulated number of hours than overtime pay would be required. Keeping track of hours then becomes a critical aspect of the business and is referred to as time and attendance. In addition accountants are supposed to compile pay checks and stubs with detailed information on them for example the number of hours worked by each employee, withholding amounts, absences, supplemental pay, fringe benefits, and the net amount paid. Automating is very important when preparing payroll as it makes it more a more systematic process and reduces errors in calculation.

It is important for business owners to hire only those who are technologically advanced and are familiar with latest payroll software. In addition, source documents are required for the purpose of auditing. These employee worksheets should be kept systematically for easy access and safe guarded as they contain confidential information. Whether you are keeping records online or using papers, they should be well organized in the event of a subsequent audit.
Employers looking for accounting payroll manager, will need to consider a number of factors before hiring. To begin with, they will need to check credentials thoroughly of each and every candidate. A good accountant must pass through the required educational process and if he claims to be certified must have a license from the state. Checking work history and referrals is another important factor to consider. Employers should inquire from firms where this prospective employee has worked previously. This helps employers to know the strengths and weaknesses of the person. And lastly make sure to conduct a criminal background check and a drug and alcohol test before hiring.

In summary, payroll is a crucial function for small, medium and large sized businesses. It is the responsibility of employers to ensure only competent personnel who are technologically advanced and proficient on the latest software are considered. Today, with the arrival of computerized payroll online, accountants can now compile payroll for clients a half a world away. Options to outsource the payroll function as a consequence of the Software as a Service Cloud based computing model now give the small business owner more options available at a lower cost. As always f you decide to outsource the payroll function do your due diligence and find a reputable firm who has experience compiling payroll such as a CPA firm or payroll bureau. Find more information in newsletters, eBooks and magazines.

For more information don't forget to click payroll service http://www.chrysalisbp.com/payrollservice.php for more information. By clicking accounting http://www.chrysalisbp.com/meet_our_team.php , you find accurate information about payroll.

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Tag Words: payroll, accounting

Categories: Business

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