Overall goals and objectives of payroll system

Employees appreciate a timely payroll system as well: These figures also should be listed and tallied in your company database so they can be accessed by bookkeeping staff and management, as needed.

A prime goal of any payroll department is to devise a record-keeping strategy that complies with all laws and regulations, and emphasizes the secure storage of sensitive employee information.

Timeliness Many aspects of payroll are time sensitive. Payroll tax information should be accurate, as well, and should correspond with withholding allowances that workers have specified on their W-4 forms.

This helps employers stay within the law when it comes time to pay overtime. Generate Accurate Year-to-Date Reports for Employee Income A payroll system must be able to keep and generate accurate reports on employee income.

Payroll Goals & Objectives

Further, a payroll system should be able to print tax forms and other state-required figures such as FICA amounts to make complying with labor laws easier. Set deadlines for employees to submit their hours, work, expense reimbursements or other payroll-related matters, and enforce them uniformly and fairly.

Employees must receive their W-2 forms before the end of January and you must file your cumulative W-3 wage report before the end of February.

Consistency Setting employee expectations for when and how they are paid, and consistently following through, establishes a clear, timely and fair payroll system.

Sloppy or lazy entrepreneurs lose time and money sorting through loose ends; further, if the business records and accounting systems are not accurate, the owner could be charged with violating state and federal labor laws.

Share on Facebook A good payroll system provides processes and a framework for paying employees fairly, accurately and on time. Good payroll software can be a considerable initial expense, but the cost is offset by reducing the amount of time spent in processing payroll, and by producing reports that management can use to assess company performance and set department and company-wide goals.

Create a written schedule or digital reminders to help you remember when payroll tax forms are due. Additionally, since an employer can use the system to check the number of hours an employee works, the employer can shift schedules to avoid paying additional overtime thereby helping the employer keep costs lower.

Video of the Day Brought to you by Techwalla Brought to you by Techwalla Help Owners Comply with Labor Laws A payroll system must make complying with state and federal labor laws easier, while at the same time helping the owner reduce overhead.

Objectives of a Payroll System

The end result is an efficient department that helps keep employees satisfied and a business running smoothly. Payroll software will accurately calculate taxes, overtime and withholding, but the initial data entry of hours or salary must be correct, and employee information, such as W-4 withholding, as well as exempt or non-exempt status, must be accurately entered in the system.

Your payroll tax records should also accurately aggregate withholding and taxes due so that the process of completing quarterly and annual tax forms is simplified.

Objectives should include compliance with laws and regulations regarding record keeping, employee status and taxes, among other things. Although your bookkeeper or payroll specialist is primarily in charge of maintaining and referring to payroll data, the information should be easily understandable to others, such as the human resources staff and auditors.

Accurate payroll information includes hours worked and the pay per hour -- if an employee earns wage-based pay -- and it includes the salary-per-pay-period, if a worker is salaried. Accuracy Accurate paychecks are vital to employee satisfaction, and the bottom line of a business. States also have regulations regarding labor practices, paying employees and taxes.

Keeping payroll records is also necessary for auditing purposes. Cost Effectiveness Payroll is a significant business expense, and keeping costs down is a good business strategy. Department of Labor, and it regulates such things as minimum wage, employee classifications, overtime, the duration of record-keeping and what comprises acceptable time and payroll records.

Generate Paychecks and Pay Stubs An equally important objective of any payroll system is to generate paychecks and pay stubs. Quarterly and annual payroll taxes must be filed and paid on time to avoid penalties.

Payroll reports provide data that can affect and help create efficiencies in hiring strategies, staffing schedules and operations in departments across a company, and identify areas for improvement.

Your payroll system should give your employees what they need by way of timely and fair payment, and it should give your company what it needs by way of useful and complete information.

Fairness Your payroll system should be structured so that employee earnings correspond with clearly outlined benchmarks, such as specific achievements or the length of time with the company.

Have a designated time that corresponds with each payroll period for calculating and distributing checks. Ensure that the payroll department has enough time to process and meet a payroll schedule, whether it is weekly, bi-weekly or monthly, and always stick to whatever schedule applies.

Consider including a section in a company handbook on payroll that sets forth employer and employee rights and obligations. There is no room for errors in recording and paying for hours worked, compensation rates, benefits, taxes and other withholding.

Employees must receive their paychecks on schedule, whether your typical pay period is weekly, biweekly or monthly. For example, federal law mandates that employees be paid overtime if they work over 40 hours in one work week.

Check state regulations regarding providing pay stubs or statements of earnings, and how paychecks must be delivered to employees; and, create a strategy that follows the law.

One such system that needs to be accurate is the payroll system. Employers who fail to abide by the act can be fined or prosecuted. The IRS requires employers to keep tax and employee records for a minimum of four years.Human Resources and Payroll.

Search. page serves as a guide for commonly encountered constructive feedback comments and related suggestions for employee goal-setting.

Select a competency to be taken to the appropriate area. Provide objective and timely advice to customers; To top. Diversity Orientation. Current. Jun 28,  · Your payroll system should give your employees what they need by way of timely and fair payment, and it should give your company what it needs by way of useful and complete information.

Accuracy When your employees aren't paid for all of the hours they've worked, they rightfully feel disaffected and mistrustful. Payroll system have list of function.

Basic purpose of the payroll system is making monthly payment on time to time, good payroll system helps to increase employee productivity, ensures time management leading to organization's growth. HRIS Software - HR Intelligence have all the function that require for good payroll system.

Managing a Payroll Department •Defining goals and objectives •Defining the time frame •Defining the subtasks •Analyzing available resources •Evaluating costs •Payroll computer system user manuals •Payroll Department job descriptions •File descriptions.

A good payroll system provides processes and a framework for paying employees fairly, accurately and on time. A payroll department, whether it is a separate department, a department within human resources, or a unit of a finance department, straddles the purview of both HR and accounting, and must design goals with that in mind.

Sloppy or lazy entrepreneurs lose time and money sorting through loose ends; further, if the business records and accounting systems are not accurate, the owner could be charged with violating state and federal labor laws.

One such system that needs to be accurate is the payroll system.

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Overall goals and objectives of payroll system
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