Processing payroll requires preparation and performing many tasks to ensure accurate payments, payroll taxes, and benefits compliance. Preparing a checklist helps businesses get organized, stay on schedule, and safeguard that all associated tasks are completed in a timely manner.
The first step in creating a checklist is to add each vital component to processing payroll for employees. At minimum, a basic payroll checklist should include:
- Employee Records
- Timekeeping
- Wage Processing
- Deductions Processing
- Paycheck and Direct Deposit Processing
- Reporting
An Employee Record includes checking and making any necessary changes to employees’ address, pay increase (or decrease), deductions, payroll deduction changes, setting up new hire information and terminated employees.
Timekeeping involves ensuring hourly workers are paid the appropriate amount according to their worked hours during the given pay cycle. The payroll checklist should include timekeeping tasks to ensure the calculation of worked hours, timecards are submitted appropriately, and printing or electronically filing time sheet registers.
Wage Processing includes entering and coding regular and overtime hours. Wage processing may also include making adjustments to pay bonuses, commissions, severance or other company benefits such as cell phone allowance. Vacation, personal and sick time are also part of the wage processing checklist.
Deductions Processing includes statutory deductions and voluntary deductions. Design a code for each deduction such as FED for federal income tax, SS for Social Security tax, and MED for medical deductions. Including deductions in the checklist helps verify the payroll prior to processing.
Paycheck and Direct Deposit Processing are the two most popular payroll distribution methods. Include printing paycheck and paystubs on the checklist, as well as a direct deposit selection to ensure employees are receiving their payroll via the preferred method. For those on direct deposit, be sure to check for any changes to bank account numbers and information to update accordingly.
Reporting is a vital component to the payroll checklist. Employers must maintain proper payroll records according to current compliance regulations. The checklist should include all necessary payroll records such as payroll registers and timecards for each pay period. Benefits administration, payroll accounting, and tax reporting are also necessary.
As an experienced microbusiness payroll partner, Southland Data Processing also offers support to help keep payroll processing organized, compliant and accurate. Clients can expect to have access to a variety of resources, training and educational webinars to stay current with the latest news and information.
For more information about our payroll services for microbusinesses, please contact us at 909.946.2032. Or, click here and Let’s Talk!
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*Southland Data Processing, Inc. (“SDP”) is not a law firm. This article is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other SDP materials does not create an attorney-client relationship. SDP is not responsible for any inadvertent errors that may occur in the publishing process.