Payroll processing may be a complex undertaking, which is why many businesses utilize payroll software and outsource payroll processing to a payroll provider. Although, we comprehend that some of you are confronting this daunting task all alone, and we appreciate anybody who has to go it alone––which is why we’ve prepared a printable payroll checklist to make things a little simpler.
We know that this payroll checklist isn’t perfect, but we can’t expect it to be; there are too many variables, such as your region, industry, and how you choose to pay employees, to construct a single checklist that covers all payroll obligations. However, if you’re starting from scratch, this will assist you in getting started.
Table of Contents
In this payroll checklist, we discuss the significant steps involved in setting up payroll in the United States, including:
Next, it explains how the payroll checklist is processed, which is accomplished through the following steps:
Maintaining accurate and complete records is the most important rule in payroll processing. Due to this, the burden of proof sits with the employer in the case of an alleged discrepancy due to inaccurate pay for an employee or incorrect taxes received by a government agency or state. These elements aren’t included in the payroll checklist, but it’s nonetheless essential that employers remain compliant by:
You can store payroll documentation in a few different ways. It depends upon your preferences whether you opt to:
On the off chance that you choose to put in any amount of work course, make a point to keep records in a solid area, like a locked file organizer. Keep records coordinated by utilizing organizers and documents. Furthermore, have reinforcement records in the event something happens to the first documents.
Employee payroll paperwork can be stored electronically on your computer, smartphone, or tablet or by utilizing payroll or HR software. If you save the information digitally, keep backup copies in case your device or program fails. Additionally, keep your employee papers using secure software or a digital filing system.
Allow only authorized personnel (e.g., managers) access to employee payroll records, regardless of whatever method you use.
Payroll records must be kept for at least three years, according to the FLSA (e.g., wages paid, benefits, etc.). Also, save salary computation records (such as time cards, work schedules, and so on) for at least two years.
Keep employment tax paperwork (such as Forms W-4) for at least four years. If you choose, you can store payroll records for a longer period. However, you must keep them for as long as the FLSA requires.
Remember that your state may likewise have laws of finance recordkeeping. Contingent upon your state, you might have to store worker records for longer than the FLSA’s prerequisites. Look at your state to find how long you want to hold a worker finance record.
That’s a difficult question to answer. On the one hand, a payroll service does cost money, and any money saved may be reinvested in your company or utilized for other critical activities.
Another way to look at it is to consider accurate, timely pay for what it is: maybe the most significant benefit that you, as an employer, deliver to your employees. In reality, most Americans live paycheck to paycheck, which means that missing a payment for something crucial, such as a mortgage or rent, would only take a single lost paycheck.
Paying for payroll software and payroll processing is expensive, but it also ensures that you are offering the greatest benefit to your employees properly and on time.
It’s also a way to reduce your own risk because the payroll provider, who should be insured, is often in charge of withholding and paying taxes, overtime, and benefits premiums.
If you’ve never considered paying for payroll software or processing, consider addressing all of your payroll problems at once by adopting HR software with integrated payroll as a cost-effective solution.
To guarantee that you are processing payroll correctly, use this step-by-step checklist.
Before you begin, always make sure you retain proper records in case of a discrepancy.
If there is a disagreement with employees or government authorities, employers have the burden of evidence.
You will need the following items before executing the payroll checklist for the first time:
Before conducting payroll, look over your personnel information to make sure nothing has been missed or modified.
Determine the right amount of money that each employee will get before withholding.
Calculate the amount of money you need to deduct from each employee’s compensation, making that pre-tax contribution are deducted before taxes are calculated. Don’t forget to include any company-matched contributions to healthcare or retirement accounts in your calculations.
Before you cut paper checks or input amounts for direct deposit, make the last pass to search for anomalies and confirm that your records are up to date.
Employees’ salaries must be withheld and placed into the appropriate accounts for future payment of state, municipal, and federal taxes or directly to retirement funds and benefits providers. Contributions that have been matched by the corporation should be included with these payouts.
The process of writing payroll procedures is:-
The payroll process, which begins with getting employee data, payroll input, time entry, payroll processing, and payroll accounting, is a complex one. It is important to identify a user’s role and his or her tasks.
The details of your first paycheck will be determined by a variety of circumstances, including your industry and payroll size. Once you’ve determined your particular payroll duties, you may adapt your payroll management checklist to meet those tasks. If you opt to use an outsourced payroll partner, make sure to work closely with them throughout your first payroll and as required after that.