Payroll processing refers to the administration of employees’ financial records including salaries, wages, bonuses, deductions, and net pay.
Payroll might seem like a simple, straightforward process. You just need to calculate your employees’ hours and send out their paychecks, right?
In reality, there’s a lot more to it. From payroll taxes and wage policies to remitting to the IRS, the process is not as simple as it seems. Things can quickly get complicated. To ensure accuracy, the payroll process can’t be rushed.
Staying on top of payroll can be a time-consuming and stressful process. Especially if you take care of your payroll in-house, it can quickly become a nightmare for business owners.
According to the National Business Association 2013 Small Business Taxation Survey, 60 percent of small businesses handle their payroll processes internally. Regardless of the size of your business, it’s important to have an organized payroll system in place to protect you from IRS penalties and to ensure your employees are paid on time.