What is payroll?

Payroll is the total amount of wages that a company pays its employees. Running payroll involves taking out federal, state, and local taxes from the employee’s gross pay.

Payroll is the total amount of wages that a corporation pays its employees. Running payroll involves removing federal, state, and native taxes from the employee’s gross pay.

For this reason, “payroll” doesn’t typically apply to independent contractors. Independent contractors are required to pay everything of their tax burden. Employees are only liable for paying half, and therefore the employers are liable for the opposite half.

Factors affecting the payroll procedure

  • Hours worked

If you've got hourly employees, you've got to stay track of the hours they work. this may make sure you pay your employees the right amount. If you've got salary employees, you'll want to trace the hours they work to form sure they're fixing all of their time.

  • Overtime pay

All nonexempt employees should receive overtime pay. This includes both nonexempt hourly and salary workers. Overtime hours typically begin after an employee works 40 hours during a week. Overtime pay is one-and-a-half times the traditional rate of pay.

  • Time Keeping and Payroll

Time and attendance tracking is effective to payroll. Whether employees are salaried or hourly, time and attendance tracking can help to make sure that employees are being paid the right amount for time worked and may cover a corporation from a legal standpoint. When time and attendance tracking functions and payroll functions are done electronically, it are often very helpful to attach the systems in order that hours worked are often seamlessly imported into the payroll system.

For this reason, “payroll” doesn’t typically apply to independent contractors. Independent contractors are required to pay the entirety of their tax burden. Employees are only responsible for paying half, and the employers are responsible for the other half.

Factors affecting the payroll procedure

Hours worked

If you have hourly employees, you have to keep track of the hours they work. This will ensure you pay your employees the proper amount. If you have salary employees, you may want to track the hours they work to make sure they are putting in all of their time.

Overtime pay

All nonexempt employees should receive overtime pay. This includes both nonexempt hourly and salary workers. Overtime hours typically begin after an employee works 40 hours in a week. Overtime pay is one-and-a-half times the normal rate of pay.

Time Keeping and Payroll

Time and attendance tracking is valuable to payroll. Whether employees are salaried or hourly, time and attendance tracking can help to ensure that employees are being paid the correct amount for time worked and can cover a company from a legal standpoint. When time and attendance tracking functions and payroll functions are done electronically, it can be very helpful to connect the systems so that hours worked can be seamlessly imported into the payroll system.