Employee Payroll Processing
If you are tasked to make the payroll of the employees, you should know a lot about the process.
Payroll processing is not that hard and as long as you know what you’re doing, you can easily compute the salaries whether it’s for weekly, every two weeks, or monthly. You can compute manually or you can also use computer software programs.
Some Facts of Employee Payroll Process
Are you familiar with employee payroll processing? This article may be of great help to you in fully understanding the process. Payroll processing is difficult to master since it is a detailed task. A thorough understanding of the process can help you in making the necessary computations. For instance, if the payroll is going to be given weekly, you should prepare or process it two days prior to the pay date. The time allowance can give you ample time for check printing and deposit transactions. How do you compute the salary of hourly employees? You will need to refer to the timesheets to calculate the hours worked by a certain employee. The immediate superior or supervisor should have a signature on the timesheet but if you can’t find any signature, return it to the supervisor for signing.
You must ensure that everything is paid in regular. For instance, the regular pay will already include the work time, and sick or vacation leaves. If the rate of the employee is $20 per hour and he worked for 32 hours, you will already have a total of $640. Within the week, the employee had 8 vacation hours so this means that you will add $80 more to the initial amount computed to come up with $720 for the gross pay in one week.
Employee Payroll Processing – Prorating the Working Hours
The payroll of permanent employees including managers, executives, supervisors, etc will remain the same per period. However, just in case all the allowed leaves have been used, the person in charge with payroll processing should make the necessary adjustments. If you have new employees, you should refer to the start date to computer the salary. For instance, from the date of the cut off, the new employee was able to work ten days only. You will compute the salary for ten days as well and the rest will be carried on to the next pay schedule. This is also applicable to employees who have been terminated in the service. Prorate the pay so that you can compute for the amount. If the hours of work exceeded the cut off, then the terminated employee will have to wait for the other cycle to get his balance pay.
Before you close the payroll, always double check first; if you are using a computerized system, you have to ensure that deductions and taxes have been computed as well. Fix the errors once you see them to avoid problems. So you see, payroll processing is not as hard as you think.
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