It is very important for an Employer to properly explain the payroll system to their employees. It is also important for all companies to have a good payroll system with a good organizational structure.
The first step is to let employees know when they are getting paid. If a company is small, with a handful of people, then it might be wise to use a manual payroll system. However, it still might be wise to hire a payroll person to handle wage and tax computations, tax withholding and payments.
One of the main steps in explaining the payroll system to employees is to ensure all employees that their paychecks will be accurate and paid to them on time. If there are mistakes in an employee's paycheck or if they
do not receive their paychecks within a timely manner, this can cause a employee to become disgruntle and perhaps slack off in their work performance. They may even start to look for another job if this happens quite often. This is why time sheets are developed and they are signed by both the employees and the supervisor. The employees hours must be calculated and done accurately. These time sheets are to reflect the employees hourly rate of pay and the hours worked within the reflected pay period.
Taxes are a crucial part of the payment process. This can lead to a lot of serious problems if taxes are not deducted properly or if they are not deducted at all. All employees by law must pay taxes. This will include Federal, State or sometimes local taxes depending on the situation. Therefore, the payroll process must include issuing W-2 Forms to all of their employees.
It is also important not to only explain the payroll system to all employees, but to have a good record keeping system. A lot of companies will implement a software system to make it easier to keep track of the payroll records. This software system installs all of the payroll data for every payroll run. A good employer will explain payroll systems accurately to all of their employees and keep good records by means of a software payroll system.
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