Payday Fridays - RL640
Payroll. It's the one word most everyone, regardless of business type, understands.
Or do they?
Payroll has several different meanings:
- The distribution of paychecks (physical or electronic) to employees each payday.
- The financial records for employee wages/salaries, withholding, deductions, bonuses, pay for time not worked (holidays, vacations, sick time, etc.) and other items on the paychecks.
- The record of total earnings of all employees for a company in a fiscal year.
We can all agree that Payroll plays a vital role in any company – big or small.
To prepare employee paychecks, the employer first calculates the pay for that pay period. Next, the employer must withhold FICA taxes (Social Security and Medicare), and Federal and State income taxes from each paycheck. The employer also may deduct other amounts from the paycheck. These might include retirement plan and health plan contributions, union dues and charitable contributions.
But "doing payroll" isn't complete yet. After the employer distributes paychecks (or uses direct deposit), other calculations must be done.
The employer must calculate and set aside amounts deducted from the employee's pay to be paid later. The employer also must set aside an amount for the employer's contribution to FICA taxes and for unemployment taxes.
Payroll also includes record keeping. A separate record must be kept for each employee, showing amounts paid for each pay period, for end-of-year reports. Records also must be kept of employee authorizations and any changes in pay.
If this all sounds complicated, it is. That's why many employers outsource payroll.
Intuit offers a couple of great options for outsourced payroll:
Intuit Full Service Payroll (IFSP) when you are using QuickBooks Desktop software
QuickBooks Online Full Service Payroll (QBOFSP) if you are a QuickBooks Online user.
Intuit Full Service Payroll
Intuit FSP Option
QuickBooks Online Full Service Payroll
QBO FSP Option
Intuit has made outsourcing payroll a no-brainer, so why wouldn’t you Outsource? From getting you set up, to handling your payroll taxes, Intuit makes sure your payroll and employees are taken care of.
Total pay and hours are instantly calculated for you, so you can print checks or use free direct deposit. Error detection technology ensures accuracy and gives you and your client peace of mind.
It's so affordable, you can’t afford not to use it.
Beverly Lang is an Advanced QuickBooks Online ProAdvisor based in Owens Cross Roads, Ala., who offers set-up, training bookkeeping and financial reporting for all QuickBooks products and serving small and medium businesses, as well as commercial and government contractors. She has an extensive knowledge of QuickBooks Payroll set up, and has conducted many payroll training sessions at conferences like Scaling New Heights. She also is a big fan of Intuit’s offerings for full payroll outsourcing within either the QB-Desktop or QB-Online environments.