What Is Payroll?
Payroll is the list of a company’s employees and the amount of money they are to be paid. There are a number of things to consider when deciding how to set up and manage payroll. The payroll process begins with employees filling out paperwork related to income tax withholdings, retirement plans and health insurance plans. Copies of these forms are kept on record by the payroll administrator and stored within an HR and payroll system.
Payroll Time Tracking
For hourly employees, time worked is collected and analyzed by supervisors or managers to verify accuracy. Because of the various compliance regulations involved and the time-consuming process of reviewing and manually entering hours into payroll, many employers forego manual payroll and instead utilize a timekeeping system to collect this data. Options include a web-based time and attendance solution, mobile device, kiosk or physical time clock.
Payroll Processing
After an employee’s hours have been verified, payroll processing begins. Gross wages are calculated then deductions are subtracted. The remainder is the amount employees receive in their paychecks, known as net pay. Paychecks can be manually distributed, but most companies prefer direct deposit to avoid extra work and errors.
Go into more detail on how payroll works here.
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