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Productive Payroll Management

02/22/2017

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Payroll management for your employees can be a major task. Whether you have five or 5,000 employees, there are many steps that go into getting your employees the most important part of their role with you, their paycheck.

CEOs of small businesses often times try to manage their payroll in the early days to save money, but they end up spending double the amount of time doing something they do not enjoy or fully understand. There are many steps involved in running payroll for your company.

After reading the following multi-step process, you might want to consider outsourcing this task sooner rather than later in your companies growth cycle.

Payroll Process

  1. Calculating wages
  2. Deducting taxes
  3. Printing and distributing checks
  4. Signing checks
  5. Setting up direct deposit
  6. Pretax deductions such as health care and 401(k)s
  7. Distributing W-2s in January

Taxes and Deductions

  1. Tax deductions for full- or part-time employees vary by state.
  2. Then there are federally mandated taxes for Social Security and Medicare, with the amount dictated by a worker’s salary and number of dependents.
  3. Other deductions that you may have to consider are those for health care and savings programs such as a 401(k)s.

Keeping the Business Cash Friendly

It’s also very important to know how much cash you have on hand for your business. Someone must manage your books and know that you have enough cash on hand to meet payroll.

A professional managing your payroll and accounting efforts will help you keep the cash you need as it will be their job to collect on invoices, especially those that are past due. Learn more about our outsourced payroll services.

Posted in: Payroll