What's your most valuable tool when calculating payroll?
Honestly, excel spreadsheets/calculators that I have made to mimic the payroll system so that I can double check any paycheck that needs it without manually doing so each time. Is it overkill? Yes, for some. But when you work alone with no real doublecheck (other than the employee at the time they are paid), it has saved me some large mistakes in the past that were corrected before anyone else laid eyes on them and before they became a large issue.
Common sense and diligence. Common sense to not be handling payroll unless I could perform it manually (so I had a rough idea of the expected results, and could catch blatant or repeated errors),. Diligence to not skimp on checking things over before releasing the pay. Diligence not do do less than required by the controlling regulations, and not more than required by the controlling regulations.
In my opinion, one of the important best resources for payroll such as the smart -sheet and ms - excel advance.
The Payroll Source Book by the APA.
Also a good report writer which can run customized proofing reports.
All costs of an employee include many elements – gross wage and all employee-related expenses such as payroll taxes, insurance, meals, travels, equipment, etc. Of course, it all depends on the company’s regulations and whether it decides to pay for additional expenses.
To calculate the real cost of an hourly employee you will need to calculate the labor cost formula and actual overhead rates. In the labor cost formula you should consider employee’s hourly wages, the hours they work in a week, and the weeks they work in a year. When it comes to overhead rates, you have to add each overhead cost together and divide it by the hours an employee worked per year.
And so, determining labor cost per hour is easy. All you have to do is add an employee’s gross wages to the total cost of other expenses. Next, you have to divide it by the number of hours your employee works each year. Now overhead – add overhead to it → divide it by the number of employees → add this number to the employee’s annual labor cost → divide it by the number of hours your employee will work in a year. What you receive is the real cost of an hourly employee.
Use a free Payroll software SumoPayroll. Its free up to 10 employees