Free Personal Finance & Budgetting Articles

Professional Authors - Professional Articles



How to Do Your Own Payroll Checks


If you own a business and only have a handful of employees, doing your own payroll will probably save you a lot of money that you could put back into your business, if on the other hand you have employees in even the double digits you may not really want to take on this task yourself and you might find that the task is best handled by a professional payroll service. If you do decided to do it yourself here are the basics on how to do your own payroll.

Of course it will be necessary that all of your employees fill out their W-4 forms, remember this is required by the law and it needs to include their correct name, address and of course their social security number. They will also need to say if they are married and how many exemptions they may have. Make sure that the form is dated and signed by them and then you need to keep these on file in your business office.

The next step if for you to figure out their gross wages. If the employee is on salary you need to take what they make each week and use that as their gross pay and take the required deductions out. If they are paid by the hour you will just multiply the amount of money they make an hour by the hours that they worked that week, then take the deductions out. The sum of this will be their gross pay.

If there are some deductions that are voluntary such as a retirement fund to the employee you need to take these out of the gross pay before you do the mandatory reductions. This type of thing is considered non-taxable and they must be taken out before you do your tax deductions. What is left from that is what will be considered the gross pay and then you can take out your different required deductions.

So once any of the voluntary items are taken away from you take the statutory payroll taxes out and those would be the income tax and the amount you take can be found in the IRS Publication 15 or Circular E tax tables and it all depends upon how your employee filled out their W4. You will also take out state tax if your state requires it. You will also take out FICA Medicare. There may be other deductions depending upon where you happen to live.

Other voluntary deductions like regular savings plans, direct deposits, any kind of loan payments or tuition payments are not deducted until everything else is deducted. You will deduct these types from the net pay. These things must have the written authorization of the employee before they can be deducted.

Once you have done this, you will then have their total net pay and this is what your employee will actually receive on their payroll check.

It's probably a good idea if you use a payroll software package like Peachtree in order for you to do this with ease and to cut down on any errors and just make doing payroll a lot easier and quicker.





Comments
pipsguru commented on 19-Sep-2016 07:22 AM
DailyPipsSignal is a professional forex signals and trade copier service provider. We are unique in our quality and performance. We are a group of experienced forex traders who live by trading. We live by our experiences and skills; therefore, we have developed a trading system that is unbeatable among hundreds of forex signal providers. We are the only forex signals provider which offers money back guarantee. So, traders can consider our service without any hesitation. For busy traders we have introduced a hassle free trade copier system. It copies trade automatically to the traders’ accounts from master account. We provide signal real time by sms, emails and webpage.


Post a Comment




Captcha Image






BLOG TAG CLOUD
reduce interest health insurance getting health insurance cash flow deductions car finance new car smell cash own business W-4 forms true market value power of attorney insurance company coupons reduce tax best credit invitations estate planning lawyer pay bills income retirement years finance company car sites major debt major financial issues creditors structured settlement car loan finance tips payment plan stop procrastinating make a will money conscious personal finance tips decorations wills home equity loan veteran loan birthday party party supplies research get help debt management company shop online manager specials miss payments financial crisis personal bankruptcy saving money interest rate present car common estate planning home improvement loan poor credit top preparing dinner car lot home loan qualified veteran estate planning gross income credit score repair credit leasing company chapter 7 periodic payments grocery shopping new car discounted items payroll tight budget legal power quiet time owe money property value car household tips attorney emergency spending voluntary afford a car quick sale va loan possibility grocery list getting a loan car dealer salvage groceries computer secured loan payroll software package rebates start investing debt management save money lower tax printer credit policies money issues financial basis half price debt settlement right estate planning lawyer personal finance resources test drives medical history get rid of debt property tax dream social security number trade in value sticker shock managing time actual loan self help overspending car payments sticker price unsecured loan personal finances employees avoid personal bankruptcy finances meat specials different models personal finance enjoying car insurance secure finances compare prices local dealer homemade food retirement planning payment range bad credit dealership good credit enough money balloons community property stop paying bankruptcy store ads estate planning errors buying a home fast paced gross pay need maternity care financial power party theme spend less finance tips planning car payment loan possibility mortgage payments lease takeover certain stocks improvement loan retirement fund car lease financial issues law firm handling problems reality medicare budget financial agent family member banners stock market net pay credit specials income tax insurance financial affairs time management assessor estimate debts



Copyright 2016 - Free Info Site Enterprises
Privacy Policy  |  Copyright Policy  |  Website Use Policy  |  Non Endorsement Policy  |  Contact Us  

Finance Blogs
Finance