Question

create procedures you can use as a bookkeeper as part of your duties related to payroll.

include the following points:

Enter employee pay records.

Process payroll.

Reconcile payroll.

Update payroll records.

Payroll enquiries.

End of quarter.

End of financial year.

Back-up.

Complete payroll component of BAS.

Answer 1

Payroll is defined as the total amount of wages paid by an organization to its employees and other workers. Some time processing payroll is very complicated because we require includes all information of employee and requires collecting some deduction from payroll like insurance premiums, retirement plan contributions and tax withholdings from employee pay.

Run a payroll- Processing payroll correctly requires careful planning, because this may be the most time consuming work of our business performs each month. There are ongoing tasks that need attention, as well as setup procedures for new employee and charges to withholdings, benefits, commissions, etc. for current employees.

We require the following documents that are most important to process payroll:-

• Health insurance plan
• Retirement plans
• Income tax with holding

Following are the steps required to process payroll of an organization-

1. Enter employee information and pay record to process his pay.
2. Determine gross pay rates
3. Collect all required documents for deductions and tax withholdings
4. Calculate taxes and withholdings
5. Process payroll for net pay amounts to employees
6. Forward deducted amounts to insurance companies and benefit provider
7. Submit taxes withheld to each taxing authority
8. Reconcile payroll with budget & payroll register, and also verify that their calculations are correct.
9. Updates payroll records with new information received form authorized sources.
10. Take periodic back- up of payroll data

During the processing the payroll we should complete payroll component of business activity statement. We should verify and check our payroll data and processing at the end of every quarter and financial year. Our payroll department also requires spending a great deal of time answering employee questions about their pay. The aggregate amount of time spent on responses can be quite high, when there are number of employees high.