The term ‘Payroll‘ encompasses every employee of a company who receives a regular wage or other compensation. Some employees may be paid steady salary while others get paid for hours worked or on commission.

Regular deductions such as taxes, advances, loss of pay, medical insurance, union dues, and charitable contributions and so on are then categorized and subtracted. The remaining balance is then converted to a check and becomes the employee’s ‘Net Pay’ for that time period.

Payroll process is mainly dependent on few factors which are required for the processing. Time-sheets provide us, the no. of hours being worked by the employee so that his salary can be calculated accordingly.

Some employees work on commission basis, for them the calculations will be based on the commissions earned in that particular period for which the payroll is being run.

As an employer, you are responsible for

  • Paying your employees as agreed for the work they have done, and paying overtime appropriately.
  • Filing payroll tax reports with the IRS and state agencies within deadlines.
  • Withholding appropriate taxes from employees and paying these taxes.
  • Setting aside funds to pay your portion of payroll taxes and paying these taxes.

~ Satish