Payroll Processing Solutions > Payroll Clerks
Until about 40 years ago, these calculations were performed manually or with electronic calculators, but computers have largely automated these calculations in recent decades. Nevertheless, with all of the information that must be factored in and reported every pay period for each employee, payroll processing is a complex and time-consuming job that comes under the direction of the accounting department.
In addition to deducting federal, state, and local taxes and sending them to the correct government offices, businesses also need to calculate Social Security and Medicare taxes, unemployment tax, and workers' compensation. While individuals pay 50% of their social security tax, their employer is required by law to pick up the other half. Whereas Social Security and Medicare are flat rate taxes, the unemployment tax rate can be reduced for employers who have a pattern of keeping a stable work force. The unemployment tax program is a joint venture between the United States federal government and the individual States, so the employer pays part of the unemployment tax to the federal government and another part to a particular state.
Today, payroll processing software is available to capture time clock data, perform payroll calculations, produce payroll checks, generate payroll reports, and submit the necessary information to federal, state, and local tax authorities. In some cases, payroll software is included in comprehensive accounting or human resources packages.
Some companies process their payroll internally, but the laws concerning taxes, employee benefits, and deductions change from time to time, making it difficult and expensive for companies to maintain their own payroll software. So an increasing number of firms have opted to use outsourced payroll and human resource solutions offered by companies like ADP, Ceridian, and PayChex. With all of the various deductions that must be monitored and calculated, payroll processing can be a difficult, time-consuming, and challenging job. These payroll firms, and other payroll services, can make it easier on the in-house payroll department and ensure that paychecks are done correctly and on-time.
Some of these firms can handle a broad spectrum of employee administration functions for large and smaller employers. In addition to payroll and human resource services, they offer solutions in the areas of benefits administration and tax filing as well as time and attendance tracking and retirement planning.
Related Payroll Industry Website
Copyright © Zeducorp.
All rights reserved.
About Us. Contact Us. Search.
For your convenience, certain links will open in new windows.
Payroll Processing - Payroll Software - Payroll Services
Recent Payroll News
Payroll and Salaries Binders on a Desk