Every business, large or small, must have in place a way to pay its employees. Large corporations may have an in house accounting department. For the smaller businesses, such as are found in Monterey CA small business payroll can be managed by an outside service.
It is required that a company maintain records of all employees salaries, withholding tax, wages and any bonuses earned. All this information must be calculated before issuing paychecks. Without the payroll being functional no employees would remain on the job.
The federal, state and local taxes are taken out of the total paid to an employee. Each must be accurately calculated. The employer must make certain everything is done legally as dictated by the various government agencies.
Separate figuring has to be done for Social Security and Medicare. These funds are held in trust. They are paid to the employees at a later time. The quarterly withholding tax is a projected amount based on expected earnings. An employer is responsible or this tax being paid.
The taxes the employer must pay are a separate issue. The company will pay a part of the Social Security, Medicare and federal and state unemployment tax while the employee pays a share. It is up to the companys accountant or outside agency to calculate everything accurately.
The frequency at which paychecks are issued can vary. Some companies pay daily, others weekly or twice a month. Each business decides on that. A company owner may determine that money can be saved by outsourcing the department that handles issuing the paychecks.
Details that may change yearly include the percentages to be paid for different taxes. A restaurant owner must figure in the tips in all calculations. There are large manuals filled with rules and regulations to be consulted.
Taxes change frequently as to how much is deducted and for what. It can become very complicated. Whether taken care of in house or by an outside service, it is one part of owning a company that must be taken care of. It is legally required.
It is required that a company maintain records of all employees salaries, withholding tax, wages and any bonuses earned. All this information must be calculated before issuing paychecks. Without the payroll being functional no employees would remain on the job.
The federal, state and local taxes are taken out of the total paid to an employee. Each must be accurately calculated. The employer must make certain everything is done legally as dictated by the various government agencies.
Separate figuring has to be done for Social Security and Medicare. These funds are held in trust. They are paid to the employees at a later time. The quarterly withholding tax is a projected amount based on expected earnings. An employer is responsible or this tax being paid.
The taxes the employer must pay are a separate issue. The company will pay a part of the Social Security, Medicare and federal and state unemployment tax while the employee pays a share. It is up to the companys accountant or outside agency to calculate everything accurately.
The frequency at which paychecks are issued can vary. Some companies pay daily, others weekly or twice a month. Each business decides on that. A company owner may determine that money can be saved by outsourcing the department that handles issuing the paychecks.
Details that may change yearly include the percentages to be paid for different taxes. A restaurant owner must figure in the tips in all calculations. There are large manuals filled with rules and regulations to be consulted.
Taxes change frequently as to how much is deducted and for what. It can become very complicated. Whether taken care of in house or by an outside service, it is one part of owning a company that must be taken care of. It is legally required.
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