Question

What are the applicable payroll records to process payroll and what is the purpose of each?

Answer 1

The applicable payroll records to process payroll vary from company to company. The payroll is very complicated process, so the records are countless in payroll function. Every company has to keep minimum payroll records for processing purpose. The records required to process payroll are:

1) List of new employees: The HR department release the list of new employees alongwith related employee’s records like health insurance plans, retirement plans and income tax withholdings.

2) Collection of the timecard data of the employees: To process the payroll it is essential to have time worked during the processing period by each of the employee. This information is extracted from the Timecard of each employee.

3)To process the payroll: The requirement for processing of payroll are:

a) Gross Wages : The gross wages of the employee which will invite deductions like insurance premiums, retirement plan contributions, benefits and tax withholdings.

b) The social security and medicare: The information of the deduction towards the social security and medicare out of the gross wages is required to get net pay.

c) Benefits: The amount of the total benefits which is included in the gross wages should be made available, so that deduction are made.

d) Tax withholdings: The marginal rate towards federal and state income taxes are each and every employee is required to withhold the taxes of the wages calculated.

4) Issue the Paychecks : The calculated net pay after the all the deduction, the pay slip/ pay checks are issued to the employees. The same should be first checked that it is error free and correct.

It ends the payroll process.

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