“An effective and efficient payroll management is, therefore, one of the most powerful weapons for enhancing staff morale and bolstering business”
Payroll management is an important component of any business. Making sure that your employees are paid accurately and on-time, filing taxes according to state and federal law and ensuring that you are in compliance with all agencies requires time and skillful execution.
A Great Payroll Management System Will:
- Accurately calculate employee earnings, withholdings for taxes and other deductions
- Provide detailed payroll reports, customized for your specific needs
- Report and deposit payroll taxes accurately and on time to the appropriate agency
- Make sure your company is aware of laws and regulatory chance so that you are in compliance with local, state and federal law
Pay is most often disbursed by companies in bi-weekly or twice per month (first and fifteenth of the month) payments, although weekly is also fairly common. Occasionally daily, monthly, quarterly, and annual pay occurs, depending on the company and the position. Many companies outsource their calculations and disbursements to a payroll company, which allows for less company expenses in many situations because of lightened burden of regulation and legal compliance, as well as training.
The key features of Payroll management all companies looking for are: Core HR, benefits, payroll, time and attendance, performance management as well as a suite of management tools. Additionally, they look for a system that would bring them the greatest amount of value.
Why is Payroll Management Important?
Payroll management is an important function of Human Resources within an organization. Certain aspects of payroll management, such as processing and compliance concerns, are often delegated to outside service vendors.
Payroll management has two meanings in business. From a broad company perspective it refers to the sum total of all financial records for an employee or group of employees including salaries and wages, bonuses and deductions. From a purely accounting standpoint, it is more specific, referring to payments to an employee within
Payroll management in both cases is important to a company’s finances and the morale of its employees. The accounting department must take care in the preparation and disbursement of payrolls to meet both state and federal guidelines. Payroll and the taxes, which are separate and different from income taxes, are generally one of the largest financial considerations for a company.
From a moral and ethical perspective, payroll is vitally important to the atmosphere and culture of a business. Employees expect timely and accurate payment for their labor or service, and mistakes in pay, withholdings, or deductions can be a major cause of friction and dissatisfaction among the workforce. Ensuring the timeliness and accuracy of pay should be a top priority for any company’s HR or accounting departments.
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