Regardless of the number of employees an organization has, having an efficient payroll management system is extremely important for the proper functioning of company processes. Moreover, it also helps in maintaining the legal and regulatory provisions, saving a lot of time side by side.
Setting up a payroll management system for your business organization is not at all difficult. Go through these steps to get the job done:
Grab an EIN (Employer Identification Number):
Every employer, whether from a large organization or small, requires getting an EIN issued by IRS in order to hire employees. Some people refer it as Employer Tax ID or Form SS-4 as well. This number acts as a unique identification which is necessary while submitting documents, filing taxes or reporting employee information to the state agencies.
Enquire whether a Local or State ID is needed:
It has been mandated by some local or state governments to get ID numbers for business owners in order to accomplish tax formalities. So, be sure that you are affirmed in this context to avoid any problems at later stages.
Identify and Group Workforce categories:
Clearly categorizing full-time and contract-based employees is really an important aspect in payroll processing. It directly influences the income taxes, medical taxes, unemployment taxes and social security.
Make sure all the documentation and other paperwork is finished:
Keeping all the documentation up-to-date is better for proper functioning of an organization. Mandate every new employee to fill in the W-4 form (Federal Income Tax Withholding Form). This is required to conceal the tax amount from employee’s pay.
Choose the Pay-Period:
Although the payment mode is determined by the State government’s law (preferably bi-monthly), still employers have a choice to pay their employees either on monthly or bi-monthly basis. Define a pay-period to manage the timely and orderly payments.
Define all Compensation Rules for Employees:
While setting up payroll for your employees, all the necessary business factors like paid time offs, overtime payments, tracking employee working hours, etc. should be taken into consideration. Other business deductibles such as insurance premiums, retirement emoluments, etc. should also be deducted from the employee paychecks.
Selecting an appropriate Payroll System:
Choosing a best-fit payroll management system for meeting your organizational needs is a vital task, and thus you need to carefully consider all the necessary factors. TeemWurk is one such payroll management tool that will eliminate this confusion as it is an ultimate solution to get all your tasks done with zero errors. The process is completely automatic and is extremely easy to implement. This cost-effective software can automatically calculate pay stubs as well as file taxes. You can even produce reports about tax processing and get access to complete employee data.
Once the TeemWurk Payroll system is implemented, there is nothing else to be done. This error-free application is robust enough to handle all your payroll tasks effectively. It will not only help in paying your employees on time but also have a record of the pay history and tax reports.