18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
18663 Ventura Blvd, Suite 227Tarzana, CA 91356
FREE CONSULTATION818-436-2775
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Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Managing Your Employees’ Money

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One of the most challenging aspects of running a business involves paying employees. It’s often hard enough for employers to come up with the funds to meet their employees’ salaries. Once they do, they have to deal with the hassle of accounting payroll taxes. Processing payroll can be extremely time-consuming, and there are many reasons why companies outsource this job. To understand fully what is involved with managing your employees’ money, read below.

Payroll is a Process

Long gone are the days when employers can hand over a basic check or a sum of cash for the employee’s services. Instead, processing payroll involves the following steps:

  • Calculating the wage for each employee
  • Deducting federal and state income taxes
  • Printing, signing, and distributing checks
  • Setting up direct deposit for interested employees
  • Making any pretax deductions
  • Distributing W2s at the beginning of each year

Taxes and Deductions

Arguably the most difficult part of  involves determining the taxes and deductions. This usually varies with each employee depending on their wage, number of dependents, and benefit selections. Because of this, no two paychecks are alike. Thus, it can take hours to process every check. Since most companies pay their employees every two weeks or twice a month, sometimes it is easier to have payroll experts handle the details involved with taxes and deductions.

Wage Inconsistencies

A few companies have consistencies with their wages that makes it easy to handle payroll. Their employees tend to work the same schedules and are paid the same wage. However, most companies have a lot of different employees that vary in their wages and responsibilities. For example, a manager at a sales company might work full-time and receive a salary with benefits. The same sales company might hire part-time employees that are paid by the hour. These inconsistencies in their wages make it more complicated to process payroll.

Since managing accounting payroll taxes for your employees is complex, it might make sense to hire professional help to handle this task. Then, you will be able to focus your attention on improving your business.