Payroll plays a crucial role in the internal operation of a business from processing raw employee data into accounting and payroll preparation and reporting payroll taxes that are subject to laws and regulations. In the U.S. Payroll is subject to federal, state, and local regulations including employee exemptions, recording keeping, and tax requirements.
Hiring someone In-House to process payroll which can cost dearly from $35,000 to $45,000 per year for a small to mid-size company. The solution for small businesses that do Not have many employees would be to Outsource this service as Add-On to Bookkeeper functions with the fundaments handled by the company itself. The reason bookkeeper can charge little amount is because your company is just one of their many clients. For more information click FACTS – SOLUTIONS payroll accounting solutions.
For small businesses, payroll accounting has been facing serious challenges. Some of the concerns are from accounting treatment to liability reporting and filing. This is where FACTS – SOLUTIONS come in and provides small business accounting payroll whether handling timesheets, salaries/wages, payroll taxes, and recording of worker’s compensation. Setting up payroll accounting processes can be a challenge and deciding on the right payroll software can be daunting. Simple way to look at payroll accounting is that it is the process of recording transactions into payroll expenses and liabilities in the general ledger.
Payroll and salaries folders stack with labels on a black binder on paperwork documents summary report, HR-human resources business, and bookkeeping accountancy concepts in busy offices
Types of Payroll Accounting Services
In-House Payroll – implies that the company handles all payroll-related processes and accounting by the company’s payroll department from timesheets, calculating wages, producing paychecks, sending the ACH (Automated Clearing House), for direct deposits, and remitting any tax payments.
Outsourced Payroll – IF Outsourced to a Full-Service payroll processing company would imply that all payroll-related process and accounting is going to be handled by the payroll company from the timesheet, wage calculations, creating paychecks, direct deposits, and tax payment.
Sometimes Small Businesses wonder if they would be required to perform any of the payroll accounting when they have only one employee or hundreds of employees. In either case, Payroll Accounting would be a must-have requirement for both business accountability, management, and external reporting and liability filing to the government.
We do understand the complexity payroll itself brings to all businesses. That’s why FACTS – SOLUTIONS provides solutions so the small business owners can focus on what they love the most running their business operation and take the headache out of payroll accounting and reconciliation by providing basic to full-service payroll accounting solutions.
