No matter how small or big an organisation is, payroll is one of the most complex and critical issue every organisation seems to face.
The issue becomes even more crucial for small business concerns as they cannot employ expert financial analysts.
A small business is one that employs less than 100 employees. However, this number varies from country to country.
A payroll is the financial statement that shows the total amount of money paid to the people by a particular company. It's an accounting system that calculates the amount due to employees after the necessary deductions.
A payroll includes the following additions and deductions
The payroll deduction is an amount that is withheld or reduced from the salary of the employee.
The deductions in Payroll includes
Do you want to spend your precious time in developing business strategies or in doing the tedious job of completing legal obligations!!!
The choice will certainly be the former one.
Nobody wants to spend time in filling up legal papers, completing formalities, complying with different formalities, calculating wages etc.
So, the small companies opt for the payroll services.
There are various payroll experts who work individually or in a group.
They work on the payroll system of the company. They relieve these small companies from the monotonous and lengthy calculations.
Payroll is one of the most critical elements in a business. The role of payroll in small business includes
Often an important question comes to the mind that what are these payroll taxes and why are these levied!!
Small business payroll taxes are those taxes that small business deducts from the wages of its employees as a mandatory requirement.
These taxes acts act as a pool of funds for the government for various purposes. These payroll taxes are used by the government for the following purposes
There are various types of payroll taxes. Some of these are
The small businesses often face the problem of accurate payroll processing. For this processing, the small companies can also hire payroll professional.
Usually for the small business concerns the payroll processing includes
The payroll process should be designed carefully. A well-planned payroll process can make payroll calculations easy and accurate.
Exhaustive, Monotonous and Cumbersome!!! Every small business relates the payroll system with these 3 words.
Every small business wants to develop an economical and time saving payroll programme to solve these payroll related problems.
Many payroll programmes have been developed to make this task easier.
There are various special software's available in the market for this purpose. Some of these are