Payroll is a complex process for any company, and it also incurs the maximum expense. Any business model works hard always to stay compliant with federal and state labor and tax laws. Payroll accounting is the key to such compliance. If you are an employer or payroll personal, you may want to know what is accountant payroll. It will enable you to efficiently managing business capital and resources. Contact Payroll is also here to offer you expert QuickBooks payroll support.
What is Payroll Accounting
Payroll accounting is the business activity of paying salaries or other benefits to the employees. Running a company payroll includes calculation of employee earnings and deducting federal and state employment taxes.
You may wonder what is accountant payroll at this point. The specialist accountants who handle the payroll process efficiently are accountant payroll. You can get the best help from Contact Payroll QuickBooks payroll support.
What is Accountant Payroll
When company accountants who only specialize in payroll processing are known as accountant payroll. They need to gain expertise in the following fields:
- Formulating a payment schedule for employees
- Knowing several laws and rules related to federal and state labor code
- Staying up to date with federal and state tax laws
- Generate employee payment accounts in payroll and maintain proper records
- Deduct proper tax and other voluntary deductions from the employee’s salary
- Generating monthly, quarterly, or yearly payroll reports
What are the Steps in Running an Efficient Payroll
When you think of what is accountant payroll, you may get more deep idea from the following steps. Also, for efficient payroll management, contact QuickBooks payroll support at Contact Payroll.
A. Consolidate Employee Data
When a company appoints a new employee, they need to gather employee payroll information on a specific Form: W-4. Employers also need to withhold certain amounts for federal and state taxes.
Employers should also withhold money from employee wages to pay for any social security benefits or schemes.
B. Figure Out the Net Pay
Understanding employee net pay is very crucial before appointing the workforce. The employee’s net will be their gross monthly salary minus benefits payments and tax withholding.
An employer may also need to work out withholding amounts towards Social Security taxes, Medicare taxes, and any appropriate local taxes.
C. Distribute Payments to Employees
Once the payroll team can calculate the net pay, it is time to disburse the payments. Usually, a company employs many workers. Therefore, each business works hard to manage an efficient payroll system that ensures employees get paid on time.
Some companies also need to pay specific bonuses, overtime, performance incentive, and any miscellaneous ex gratia.
In present days, payrolls mainly issue electronic fund transfers to employee salary accounts. Some companies may still give paper checks.
D. Relay Tax Information to Proper Authorities
Employers also need to submit a tax filing to the IRS and state tax authorities. These are for state tax and federal tax withholdings from wages. You would, however, report the following payments to other competitive sources:
- State unemployment payments
- Social Security taxes
- Medicare taxes
- Retirement contributions
E. Withhold Taxes from Employee and Make Payments to the Tax Authorities
The company payroll team then needs to forward all monetary proceedings from employees to the proper authorities. For example:
- All money generated through taxation would go to IRS or state taxation authorities.
- Social security premium to good social security providing agencies.
- Benefit payments to be sent to the retirement plan facilitating agencies.
QuickBooks payroll support is an efficient expert consultation solution from Contact Payroll. Many businesses may feel free to ask what is accountant payroll and other relevant inquiries.
How the Businesses Process Payrolls
Company stakeholders frequently ask what is accountant payroll and how it benefits the organization. Contact Payroll’s QuickBooks payroll support recommends that companies decide the payroll process depending on the number of employees. The most widely used methods are as follows:
Manual Book-based Payroll
- Some small businesses may still prefer the manual payroll process.
- It takes significant time, and therefore companies need to run a separate payroll team.
- All calculations, record keeping, and tax submissions are manual.
- Many large companies outsource their payroll process to independent companies.
- Medium businesses and startups hire external accountants or bookkeeping firms for payroll processing.
Automated Payroll Software
- Automated payroll applications and cloud solutions are the latest digital trend.
- It is cheaper and requires no exhaustive accountancy knowledge to process company payroll.
- The record-keeping is automated and secure.
- The tax deduction system is fully automated.
- Employers get tax filing reminders on time.
- The salary system becomes fully automatic and swift.
When you need to know what is accountant payroll, this article is a comprehensive guide for you. Additionally, when you want to opt for an expert consultation, the Contact Payroll QuickBooks payroll support team is available at your service.