How to Use a Payroll Service
The payroll systems we use today are much more advanced than simply cutting and distributing checks. They can withhold taxes, deduct for IRA's and pension plans and calculate sick time and vacation time. Thanks to this advanced computer software, the choice of a payroll system is now up to you.
- Difficulty:
- Moderately Easy
Instructions
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1
Determine which payroll system you wish to use. The size of your company, the time you have to devote to payroll, the cost of the payroll system, and the various accounting, tax and human resource functions you wish the payroll system to provide will help you to decide what kind of payroll system to choose.
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2
Outsource the process for the easiest approach. Calculating wages, printing pay slips and recording payroll information for accounting will all be done for you by a payroll service. All you'll have to do is provide the payroll service with employee salaries and time sheets. Most services will accept weekly payroll information by phone, fax or email after you set up the initial employee database.
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3
Browse the web before you buy to compare services provided. If you purchase payroll software, you should be provided with installation and technical support as well as tutorials. Make sure your vendor is willing to work with you to provide you with what your company needs.
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Focus on the other applications of the payroll system once you've mastered the basics. You can use it for federal, state and local tax reports for your company. Some systems have advanced Human Resource and accounting software.
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Use your payroll system to create a separate payroll department or use the data it provides to integrate with other departments. Human Resources needs to track employee sick time and Accounting needs to calculate cost of labor.
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Tips & Warnings
There are free payroll service downloads on the Internet. One of these is PayWindow 2007 Payroll System 5.0.2. You can find it under payroll services. There are also others called Payroll USA and Payroll Canada that are shareware.
Use your payroll system in compliance with Federal, State and Local labor and tax laws.
