Handling a company payroll used to be a pretty simple deal. Employees would work for an agreed wage and the employer would cut a check every week or two. Everyone was happy. But, those days are over. Today’s payroll process is a complex, time-consuming chore that most managers dread. There are various taxes that need to be withheld. Garnishment is often an issue. The employee’s share of benefits needs to be paid and time off banks need to maintain. Multiply that times the numerous employees spread across the region or country, and you have a mess.
Here are some of the things that need to taken into consideration when doing payroll.
- Taxes. Uncle Sam needs his share. So do the state, city, Social Security, Medicare, and, sometimes, local school districts. Every local jurisdiction has its own income tax rate, so the work location of each employee needs to be recorded with the tax rate in that jurisdiction. That’s particularly challenging if an employee works in more than one city or state during a year.
- Garnishments. A garnishment is a court order that a certain amount of money from an employee’s paycheck be sent directly to an organization or creditor until a debt is fully paid. Garnishments may also be used to pay alimony or child support.
- Benefits. In many organizations, employees share in the cost of their health insurance or other benefits through payroll deduction. These deductions can vary between employees, depending on such things as negotiated union contracts.
- Excess withholding. Some employees may choose to have extra money withheld for taxes, a Health Savings account or a retirement account.
It’s a lot for a human resources department that’s already likely overworked. Let us take care of it. Handling payroll is what we do. Your employees will get accurate paychecks, and you can get back to all those other responsibilities that need attention. Connect with us today by clicking here.