Knowledge Base

   Payroll is one of a series of accounting transactions dealing with the process of paying employees for services rendered, after processing the various requirements for withholding of money for the employee for payment of payroll taxes, insurance premiums, employee benefits, garnishments, and other deductions.

Payroll involves the calculation of amounts due to the employee, such as hourly wages, a salary consisting of a certain amount per calendar period, or pay to a sales person on commission, as well as reimbursement for employee � paid expenses such as a travel rate.

From amounts that are credited to the employee, various debits are taken as withholding, the most significant being income tax, then other taxes such as social security and Medicare. There may also be additional deductions for supplemental health insurance, union dues, and pension plan contributions, garnishment for non payment of debts, repayment of prior salary, vacation or sick leave overpayments made in error, under collection of insurance, and other deductions. The amount left after deductions from gross pay is generally the amount given in the employee�s pay envelope, either as cash or check.

Due to government mandated penalties for improper or inadequate collection of payroll taxes and paying of wages, almost all employers use a payroll service.

If you are interested to get more information about USBizFilings ® Payroll services, please Contact Us and we gladly will assist you in your payroll needs.