For every employee, getting the stipulated salary on time is an excellent motivator besides a healthy environment. If you don't understand payroll or are new to it, you may face various problems managing things. Understanding certain basics can help you get started with an efficient payroll system. However, never hesitate to take advice from professionals if you feel stuck or confused about anything.
Employer and Employee Taxes: There are two parties involved in a payroll system; employers and employees. Both the parties need to pay taxes on their wages, generally owed to the state and federal government, municipalities, and cities. The employer is responsible for gathering social security, federal income tax, and other deductions from the amount paid to employees.
Paydays and Pay Periods: Every business has a payment schedule in place, according to which they pay salaries to employees. The period from start to end of this schedule is the pay period that refers to the time for which your worker is earning that stipulated wage. Usually, pay periods are either biweekly, semi-monthly, or weekly.
Filing and Paying Taxes: Normally, you have to pay state and federal income taxes monthly. Other tax types, such as FUTA, are paid quarterly. Most employers should pay taxes monthly and check for federal and state governments' notifications to understand the frequency of paying taxes.
Timekeeping: You should keep hourly track of staff's work. Workers are classified as non-exempt or exempt depending on their work type and salary. Check with local and state tax authorities to ask about the reporting, registering, and compliance needs.
You can ensure everything stays in good shape at your business by hiring professional accounting payroll services in Sydney.