Explaining Payroll Systems

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Explaining Payroll Systems
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• In basic terms, a payroll system incorporates
  everything involved with the paying of employees
  and the filing of employment taxes. The number of
  hours worked must be tracked, wages must be
  calculated, taxes and other deductions must be
  withheld, pay checks printed and delivered to
  staff, and all appropriate taxes must be paid to
  the government.
• The payroll system adjusts gross pay by
  calculating or subtracting taxes as applicable,
  and other withholding amounts. When payday comes
  around, the payroll system will issue checks or
  payroll deposits to each employee and then as the
  business owner, you will be given a summary of
  that information which can be used to calculate
  their gross and net wages.

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• When should the payroll system commence?
• As soon as a company takes on its first official
  employee, payroll should begin and every new
  employee from there on in, must be reported to
  the state along with a correctly completed W-4
  form.
• What is a W-4 form?
• This form is used to establish how many
  allowances each employee qualifies for,
  calculating the federal income tax that needs to
  be withheld from each pay check.

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• For employers, this form is the first of many
  that must be completed and filed, and kept as
  part of your payroll system. It must be kept
  filed securely for up to four years after the
  employee leaves your company, and for whatever
  reason that should happen to have been.
• What information should be stored within payroll?
  
• Such details as the address to which each
  employee wishes their pay check to be sent to,
  and bank details for money to be wired to, must
  be kept track of and stored securely within the
  payroll system.

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• What else does a payroll system do?
• Complying with your taxes as a business owner, is
  made easier with the use of a payroll system,
  which processes tax information automatically.
  The system then goes on to adjust employee pay
  based on the withholding status that they
  provided when they completed the W-4 form, and a
  W-2 form is then generated at the end of the
  year.
• Withholding and paying taxes is among the most
  important responsibilities for any business
  owner, and in the US, Federal Income Tax, State
  and Local Income

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• Taxes, Social Security Tax and Medicare tax are
  the major withholdings that the government
  require.
• Payroll tax can also be calculated within the
  system, and payments can be automated to the
  taxing authorities, along with other deductions
  such as bonuses or wage garnishments and
  voluntary deductions.
• A good payroll system can also help generate
  reports, and these are one of the best ways of
  helping a business to manage its labor costs. The
  system generates many reports for all employees,
  whether theyre paid by the hour or salaried, and
  some

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• systems will have reporting templates that make
  finding payroll costs for any given period, quick
  and easy. It also enables business owners to
  check other important data, such as headcounts,
  vacation days and enables them to see who are
  their highest and lowest earners.
• At the end of each year, the employer will use
  its payroll system to process all the data from
  the previous year, such as wages and withholding
  information, and round it up on a W-2 form for
  full time staff, or a 1099 form for those
  employees who work on a contract. Copies of these
  forms must then be sent off to the employees in
  question, the IRS and the SSA.

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• So, as you can see, payroll plays a major factor
  in all businesses and without the help of a
  professional company/individual who specialize in
  payroll, getting to grips with its many elements
  can be tricky and time consuming. Online payroll
  systems have certainly made things easier for
  business owners, but outsourcing is the only way
  to ensure that payroll remains consistently
  accurate and timely.

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• Apollo Payroll is one of the premier small
  business payroll services companies in Miami and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  online payroll services, employee background
  check and employee timekeeping services in Miami.