WHAT IS PAYROLL

Payroll is the process by which employers pay an employee for the work they have done. Any business with employees should have a payroll established. Although, payroll seems like a mundane task, it involves many aspects including, withholding taxes from each paycheck and making sure accurate funds are paid to the correct government agency.

From an accounting perspective, payroll is crucial because payroll and payroll taxes considerably affect the net income of most companies and because they are subject to laws and regulations (e.g. in the US, payroll is subject to federal, state, and local regulations).


Three Basics of Payroll

Pay Day!
Every week? Every other week? On an agreed upon schedule, just calculate your employees’ wages, withhold the correct amount of taxes & issue their paycheck.

Paying Payroll Taxes
You will need to pay the government the Federal & State taxes withheld from your employees’ paychecks — as well as payroll taxes your business owes.

Filing Tax Forms
Let’s face it. Forms are frustrating. But you’re required to fill & file them, so the government knows who’s been paid what, the taxes paid, & other details. Most businesses file quarterly;
and some file monthly or yearly.
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