If your business has employees, you’ll have to do payroll. There’s no way to avoid it, but what is payroll? Well, payroll can mean a few different things:
- Payroll refers to the employees you pay, along with employee information.
- Payroll is also the amount you pay employees during each pay period.
- Or payroll can refer to the process of actually calculating and distributing wages and taxes.
Let’s dive deeper into the parts of payroll.
What is payroll, and what parts are included in a payroll program?
What is payroll composed of on a micro-level? In this section, I’ll break down employee information, hours worked, salaries and wages, deductions, and net and gross pay.
Before you can begin to run payroll, you need to collect some information from your employees. Every employee needs to fill out Form W-4. This form will provide you with information about each employee’s federal income tax withholding, along with their name, address, and Social Security number. You need all of this information to properly run and distribute payroll.
Payroll is a critical business operations function performed by your accounting team. Payroll involves managing all employee compensation, benefits, and withholding’s. We manage your payroll on an ongoing basis, ensuring that all employees are compensated according to their employment agreements and benefit selections.