What is the role of payroll and How can I do payroll on my own?
I have done payroll for a very long time for some pretty big companies, one of which you have probably heard off. It generally took my 3 years to fully train in a payroll staffer. The starting point is The Payroll Source Book, by the American Payroll Association. This is generally referred to as "the payroll bible". It is mostly federal rules only. You also need the employer's tax guide for each state you are in. A 2-year degree with some accounting courses is also useful. The APA has local chapters in most large cities.
The role of payroll is to pay employees and comply with a huge number of federal, state and local regulations. Plus work with accounting and HR on a number of shared issues.
Regarding doing payroll on your own, do you mean having other people pay you to do their payroll? Like any other professions, potential clients will look at your credentials and track record. There are plenty of established payroll companies with verifiable track records. I generally used ADP, not because of their weak customer service skills, but because of their very strong record as an IT company who "makes the trains run on time". I already know more about payroll then anyone they (or anyone else) is likely to know and I do not not need my hand held. I do need them to do EXACTLY what I tell them to do, no excuses, for any reason. A single payroll error can cost more then the entire years payroll service so it is difficult to take seriously someone whose sole selling point is that they are 10% cheaper then the big guys.
Payroll collectively should be an error free environment. A big enough payroll error can put many companies out of business. Even small errors burn overtime to fix. My last two jobs, I took a newly vacant position because my predecessor dropped the ball.
Payroll refers to tasks of employee payment and the filing of employee taxes. It includes keeping track of hours, calculating wages, withholding taxes and deductions, printing and delivering checks, paying employment taxes to the government and insurance.
Payroll is complicated, time-consuming and involves a varied range of responsibilities on daily basis. Small and Medium businesses find it very stressful to manage it all by themselves and thus are increasingly preferring a third party payroll service provider. This is owing to the fact that it has been proven effective and easier to handle payroll when signing up with an agency.
Please read more to know detailed important information about Payroll
Payroll is the total amount of wages paid by a company.Payroll taxes are federal, state and local taxes withheld from an employee’s paycheck by the employer. They include Income Tax, Social Security, and Medicare. In order to properly calculate what your payroll tax should be, you need to know the current tax rates. For example, the Social Security tax for 2016 is 6.2% and the Medicare tax rate is 1.45%. The percentages are determined on a yearly basis.
How to Process Payroll Yourself
Step 1: Have all employees complete a W-4.
Step 2: Find or sign up for Employer Identification Numbers
Step 3: Choose your payroll schedule
Step 4: Calculate and withhold income taxes.
Step 5: Pay taxes.
Step 6: File tax forms & employee W-2s.
If the OP is running their own small business, it can be done, with a fair investment in time (which is money), on a self learn basis. Must budget for mistakes though, as there will be many. The key addition I can make is to deposit taxes every payroll - at least at first - so you do not get behind. Once you have a good routine, then you can deposit only when required.
The best real advice is unless the OP wants to invest the time to learn to be a payroll processor, do not. Likely the OP can come out ahead spending their time in their own profession, and paying a local independent to be their payroll expert.
Ironically, I started in "payroll" as self preparing for a small business I started, and after many career changes, ended up as a payroll expert creating payroll software for others (for the last three decades).
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