If your small business is growing, you need to make sure your employees can count on you to get paid regularly. It is, therefore, important to understand what payroll processing encompasses and how the process works. B & B Money Management in New York City offers information on the steps of payroll processing, and will even handle bookkeeping for your business, making sure it is on time and correct every time.
If you’re unsure how payroll processing works, here are the basic steps involved:
- Gather Information On Employees: Each of your employees should fill out a W-4 tax form, which provides basic information like their legal name, address, and social security number. It also allows employees to select their tax withholding preferences.
- Compile Wage & Salary Records: Each employee’s annual salary and/or time sheets and hourly wages should be tracked to make sure payment calculations are correct and up to date. These records should include data about overtime and the rates applied to those hours, if applicable.
- Calculate Withholding & Other Deductions: In addition to computing the federal income tax withholding amount, you also need to deduct payments to Medicare, Social Security, unemployment insurance, and any other local taxes.
- Pay Each Taxing Authority Regularly: Once you’ve figured out how much to withhold from each employee’s paycheck, you also need to send that money to the correct entity to pay the taxes. This requires careful record keeping and organization to avoid costly errors.
If the idea of payroll processing is more than you can manage, call the experts at B & B Money Management at (646) 847-9587 to get excellent advice and service. You don’t have to go it alone when it comes to payroll, so check out their website for more information on how their payroll processing services can make doing business in New York a whole lot easier.