Accounting Outsourcing For eCommerce Firms

eCommerce has become all the rage with more and more businesses going this route. Meeting customer expectations, fulfilling them as well as keeping ahead of the competition is something that is very important for such firms. Accounting requires a lot of tedious bookkeeping and long hours and that is the reason why choosing accounting for…

eCommerce has become all the rage with more and more businesses going this route. Meeting customer expectations, fulfilling them as well as keeping ahead of the competition is something that is very important for such firms. Accounting requires a lot of tedious bookkeeping and long hours and that is the reason why choosing accounting for outsourcing eCommerce firms is such a good idea.

Advantages

Saves time

The most important reason why choosing to go the outsourcing way will pay off for your eCommerce firm is because it will save you a lot of time. As a business operating on the World Wide Web, it is obvious that there are too many things that need to get done on a particular day, whether it is keeping the online portal running at optimal speeds, resolving customer service issues and logistics. Bookkeeping will only keep you and your employees away from doing things that will have a positive effect on your business.

Saves money

A full-time accounting professional on your firm's books will mean a significant benefits package. You could save your firm a serious amount of money every year by choosing to outsource the whole thing. The thing about outsourcing this aspect of work is that you will be paying for the accounting only, and not for anything else. As a growing eCommerce firm, if saving on payroll costs is on your agenda, this could be a really great idea.

Expert help

Another reason why this will help eCommerce firms is that outsourcing will let them enjoy expert help. When you choose a professional outsourcing firm, you get experts to help you. They will know tax laws and codes like the back of their hands which is a wonderful advantage to have at a fraction of the cost of hiring a full-time employee.

Flexibility

Good bookkeeping and feedback can actually increase the profits of a company. When you know how to cut corners in a way that leads to higher productivity in your business, it will lead to expansion. Outsourcing accounting will help because you will get more flexibility in your options. You can choose the exact services you need and bypass others, which will give you more flexibility.

Conclusion

Accounting outsourcing for eCommerce firms is highly beneficial. Delegating the responsibilities of your business will give you more time to develop its key strengths. Finding a reliable accounting outsourcing firm is a step in the right direction for most eCommerce firms.

Outsourcing Accounting – Cost-Effective Means Of Handling Accounting Tasks

Every company wants to succeed and achieve a high sales pitch, but does it have a systematic management? Account outsourcing companies that function with the willingness to change and ensure thought planning can help a business in many ways. Accounting outsourcing is a cost effective measure that includes supervision of accounting tasks and improved customer…

Every company wants to succeed and achieve a high sales pitch, but does it have a systematic management? Account outsourcing companies that function with the willingness to change and ensure thought planning can help a business in many ways. Accounting outsourcing is a cost effective measure that includes supervision of accounting tasks and improved customer support services. Bookkeeping and accounting firm adds value to the business, increases firm revenue and provides technical expertise to achieve high end goals.

Why Account Outsourcing is Cost Effective?

A cost benefit analysis of account outsourcing has revealed that the strategy eliminates the need for hiring and training staff members. The company does not need to invest in building a financial work force or developing infrastructure thereby reducing labor costs. Here are the basic functions of an account outsourcing agency –

Outsourced resources reduce in-house labor charge and it ensures the company can devote more time to strategic goals. Leveraging an outsourced agency introduces financial executables who can supervise backend operations. It also means that the staff obtain free time and space to focus on target goals while the outsourced agency performances monthly ledgering, rolling forecasts and organizing business arrangements. Fraudulent activities can be avoided using an external body that tracks illegal practices within the firm.

An external CFO guarantees innovative and fresh perspectives which help the company identify deficiencies. It ensures a company does not need to invest in obtaining computing technology for recording transactions. An external department provides the manpower and technical installations required for systematic filing. The company does not have to spend a lot of time trying to understand a particular software or financial application and instead can wait for monthly reports administrated by the outsourced agency.

Accounting outsourcing operations provide an enterprise with the assurance that all financial undertakings are being handled by professionals. Accounting firms are aware of the latest and emerging technologies. Such experience and knowledge is tangible for any business that expects high level satisfaction. Right from filing tax returns to monthly budgeting, an outsourced agency remains independent of commercial policies that generally arises in a company.

Conclusion

Companies that decide to outsource accounting strategies and services, procure professionals who are adept in financial reporting, statement analysis and source documentation. Accountants classify, review and record financial transactions taking place in a company ensuring that accounts receivable and payables are directed accordingly to the ideal source. An accounting agency which functions on a varied income is a cost effective solution that implements a well planned and informed structure to enhance company profits.

Year End Accounting

Year end accounting can be problematic, especially if you have not been paying attention all through the year. The truth is that most businesses, especially ones without dedicated accountants on their payroll, do not worry about it till tax season comes, and when it does, there's always too much to do and very little time!…

Year end accounting can be problematic, especially if you have not been paying attention all through the year. The truth is that most businesses, especially ones without dedicated accountants on their payroll, do not worry about it till tax season comes, and when it does, there's always too much to do and very little time! If you are feeling the pressure, the good news is that it can be easy for your business if you know how to go about it.

Easy accounting tips

Use a cloud accounting software

If you have not done this till now, you are losing out. Businesses across the world are choosing to use cloud software for a number of reasons. Choose it and you will enjoy a lot of flexibility, security, cost-cutting and a higher productivity. It is also a great idea to put up all your numbers on a cloud as it is going to help you stay on top of your books with ease. The transition can mean a few changes in the way things are done in your business but once the tasks get moving, you will find that it all becomes a lot easier.

Outsource the accounting of your business

This is something more and more businesses are doing. Since this is a part of the business that is mostly done during year-end, it makes sense not to keep a full-time employee on hire for it. It can cut down costs to outsource the process to an outside firm that is experienced in the line of work you are in. Outsourcing has many significant benefits such as saves time, money and lets you concentrate on more important parts of your business.

Deductions

One of the significant ways a professional accountant can benefit you is to help you take the advantage of any tax deductions. There are so many ways a business can get tax deductions. If you have not gotten started with it, then it is high time to do so. Making year end accounting can be easier if you know the right things to do.

Conclusion

If the tax season gets you scared every year, it is time to take a step in the right direction. Year end does not have to be scary any longer if this is taken care off early. With the right outsourcing firm hired, you can save yourself both time and money every year. A multi-purpose outsourced agency has good outsourcing accounting experience ranging from 4 to 10 years.

Quality Payroll Software Increases Efficiency

In business, the accounting and human resource departments have many jobs, but the position responsible for computing everyone's pay each period comes with a lot of challenging responsibilities. There is an incredible amount of pressure to make sure everything is done perfectly right. Fortunately, a good payroll software program is capable of doing all the…

In business, the accounting and human resource departments have many jobs, but the position responsible for computing everyone's pay each period comes with a lot of challenging responsibilities. There is an incredible amount of pressure to make sure everything is done perfectly right. Fortunately, a good payroll software program is capable of doing all the complex calculations quickly and can make the process much easier.

The job of calculating the pay for all of a company's employees is one that is complicated, time consuming, and can be quite intimidating. Accuracy is extremely important since this is money people have earned and depend upon. It also involves the responsibility for making sure all the benefits and deductions are properly recorded and processed.

Thanks to the age of technology, there are many computer programs that can make this task not only easier, but much faster. They come in multiple formats such as web based, mobile or those that may be installed directly to the business' system. Most are customization to fit the specific needs of the company or organization using them.

Programs designed for this function speed the process, improve accuracy and could possibly even help cut some expenses normally spent on matters related to this task. When all the calculations are done, deposits computed and reports written printed, there is no need to pay a third party to do any of those things. Adjustments can now be made in a just a few easy keystrokes.

There are many complexity levels and detailing capabilities available in such programs, although as far as quality ratings are concerned, some features are absolutely necessary. Ease of set up and customization simplicity is high concerns for most users. Some things users should look for are wherever the system is appropriate for their business type and if it is not overly complicated or much too simplified.

An example of key customization features is the ability to configure the pay period settings to handle weekly, biweekly, monthly or semimonthly needs. Another option is having the ability to set up variable wage categories like hourly, salary, double time, overtime, tips, bonuses and responsibilities. Most companies also need to check for a program that is compatible for exportation to whatever accounting systems they may currently be using.

A quality program will be designed to automatically configure all applicable taxes on the local, state and federal levels and receive free and automatic updates on this each year. Those that are able to track benefits such as prizes, awards, bonuses, special pay and reimbursements can make the job even easier. Figuring discounts and personal withholding is yet another desirable feature to seek out.

A lot of these programs can be set to calculate and track how many leave, vacation and sick days each person has earned or used each period and to maintain a running balance. The ability to handle direct deposits, print check and produce all applicable reports required by accounting or human resources is desirable. Of all the possible features, the most valuable might be the automatic reminders to do a back up of all the work before allowing the session to close.

Taking Your Time and Attendance to the Cloud: Paperless Labor Management

As technology moves ever forward, how are you leveraging it to address your business' complex and evolving needs? It is no secret that it's easier – and more “green” – to conduct business using less paper, yet the true value of going digital goes beyond the simple consumption of paper and ink. A cloud-based labor…

As technology moves ever forward, how are you leveraging it to address your business' complex and evolving needs? It is no secret that it's easier – and more “green” – to conduct business using less paper, yet the true value of going digital goes beyond the simple consumption of paper and ink. A cloud-based labor management approach can bring more value to your company than you may realize.

Old habits often die hard but there's no denying that paper-based organizations are often viewed as backward and outmoded. Manual time and attendance processing is inefficient, costly and time-consuming. Fortunately, the arrival of cloud-based computing means simplified, flexible solutions are now within easy reach for most businesses.

Here are some benefits you can realize by a move to a paperless labor management system:

1. Compliance and accuracy: helps you easily capture time and attendance data for accurate payroll processing and labor law compliance. You can eliminate error-prone manual calculations while still maintaining flexibility to meet your employees' needs.

2. Workflow automation: streamline time-sensitive tasks such as leave requests and approvals. Boost efficiency by ensuring that staff members are not quickly recognized when actions are needed. On boarding sequences can be programmed automatically, scheduling and forecasting become less resource-intensive. Files are more readily accessible from workstations, making record retention and retrieval easier.

3. Increased self-adequacy: employees, managers and HR staff gain from paperless transactions. Self-service workflows give employees and managers access to the information they need to make informed decisions while status inquiries and paper requests become a thing of the past. Employees gain access to schedule, time balances and PTO requests themselves, freeing up supervisors' and HR staff time.

4. Integrated solutions: gain insight into operations and enable more focused business analysis. Realize efficiencies in scheduling based on work requirements. Measure actual hours against projections. You also gain insight into work productivity trends, allowing smart decisions based on real-time information, taking advantage of rich data collection opportunities.

5. Access to field data: gain productivity and ensure that information is up-to-date regardless of work location. Cloud-based labor management supports you wherever you are, and is accessible through all kinds of devices, providing true responsiveness. Time reporting provides critical employee payroll, scheduling and historical trend information.

6. Disaster recovery: in the face of disasters such as fire or flood, know that critical documents are accessible and protected.

Finally, if your business believes it's important to the environment to reduce paper consumption and adopt a greener approach, not only will going digital cut costs and streamline productivity, but shifting to cloud-based labor management can help your business do more with less, leaving a smaller environmental footprint.

Payroll Outsourcing to Straighten Things Out

Gauging by its present trajectory, the practice of payroll outsourcing is going to be one of the most inherent aspects of the corporate realm in a few years. The HR outsourcing industry has witnessed a huge spike in its numbers as is evident through various researches conducted. As the global economy gets more and more…

Gauging by its present trajectory, the practice of payroll outsourcing is going to be one of the most inherent aspects of the corporate realm in a few years.

The HR outsourcing industry has witnessed a huge spike in its numbers as is evident through various researches conducted. As the global economy gets more and more unpredictable and sooner to risks, the emphasis on cost reduction is getting more prominent. And thus, this stimulates the outsourcing industry, the effects of which trickle down to payroll outsourcing.

Now, the process of reimbursing employees in a typical corporate environment is an elaborate one and requires an abundance of resources, particularly with a large workforce. This sometimes necessitates the practice of outsourcing the payroll tasks to an external agency that has the requisite resources and offers its services on a price that falls well within your budget. In fact, making savings on money happens to be one of the most hotly pursued reasons for going for payroll outsourcing.

Several elements combine to form one payroll – you have the gross salary divided into a number of segregations that involve the signed-up pay, the bonuses, the overtime, the travel allowances, the severance pay and many more. It does not matter how simple you are trying to keep things at your organization, the salary scheme of things would always be multi layered and require great attention to details.

Handling the payrolls can be a demanding task as they require managing large amounts of data and managing them with precision. Keeping up with this large data might lead to a few discrepancies creeping up. With payroll outsourcing, you can hand this task over to an external resource so that you can focus your in-house resources on the more core operations of your organization.

So if you are leaning towards payroll outsourcing, you should be absolutely sure that you hire services of a company that is reliable and has a positive word of mouth spread around it in the market. There are various concerns floating around the outsourcing phenomenon that are often well founded if you contract the job out to companies with poor work ethics and distrustful reputation. Some such concerns include data insecure, no control over the entire process, no access to the reports, etc. and that's why, you can not go in for the first outsourcing services provider you come across. The company you choose should be a result of an extensive research and some references.

The most reliable payroll outsourcing service providers also use the most advanced technologies so that the tasks are expedited and are accurate to the highest degree. This is another added advantage to signing up with them. So, invest more time in getting to know your outsourcing partner and be certain that you are investing in the welfare of your organization.

Outsourcing Payroll: The Benefits

From managing employees to securing sales and dealing with any growth opportunities; as a business owner you will have many things to deal with. Whether you own a small business or are just starting up, you will understandably be under a lot of pressure to ensure that if nothing else, your company keep its head…

From managing employees to securing sales and dealing with any growth opportunities; as a business owner you will have many things to deal with. Whether you own a small business or are just starting up, you will understandably be under a lot of pressure to ensure that if nothing else, your company keep its head above water and nothing is more critical to that then your finances.

Whatever the size of the business the financial obligations remain the same; bookkeeping, tax returns and vat returns are just some of the financial factors that must be considered and this includes payroll. Whether a business employees ten people or ten thousands, it is legally obliged to ensure that all are regularly paid for the work that they do.

Managing payroll is never easy and with everything from national insurance to tax to consider it can get very confusing! As with all areas of business finance it is important that payroll is due with due diligence and according to HMRC standards which is often why many business owners will opt to outsource to a payment specialist.

Is managing your company payroll getting too much? Are you wondering whether you have done things right? Then why not consider outsourcing too …

  • Penalties- HMRC is known for being incredibly strict and any miscalculations on national insurance and tax payments could result in a penalty however by outsourcing to a payroll specialist you can rest assured that your salary will be managed correctly.
  • The Know How- Financial rules and regulations are often regularly updated and for the average business owner, knowing what to do and what not to do can all get very confusing. In order to manage payroll in-house a great deal of time, understanding and effort is required, something which the average business owner may struggle to spare. By outsourcing your business can keep up to date with any changes, as the business owner you can become educated all the while keep your business in the best condition possible.
  • Time- As mentioned over and over again, time is of the essence in business and when it comes to payroll, you could easily several days each time trying to ensure that you are doing things correctly, to put it simply, outsourcing billing will free up your time so that you can comfortably focus on other things … what could be better?
  • Cost Saving- For many the idea of ​​outsourcing may seem costly however did you know that by outsourcing payroll you could actually save your business money? From saving yourself the hassle of dealing with payment software to avoiding and mistakes and of course as mentioned in the above point, saving yourself time; in the long run outsourcing could save you a great deal!

Correctly managing all areas of business finances is of great importance and payroll is a part of that. Is your payroll department being managed correctly?

Getting a Grip With German Payroll

German payroll is a huge and vital part of working in Germany. Not only is it law, but also in order to work successfully, you need to grasp an understanding. For any multinational organization undergoing expansion, Germany is a hospitable business climate. Being the most populated nation within the EU, the country provides large-scale access…

German payroll is a huge and vital part of working in Germany. Not only is it law, but also in order to work successfully, you need to grasp an understanding.

For any multinational organization undergoing expansion, Germany is a hospitable business climate. Being the most populated nation within the EU, the country provides large-scale access to a highly educated and plentiful workforce alongside millions of potential customers. As an added benefit, the German economy is one of the most robust, being the forth largest in the world.

While Germany can offer several advantages to those looking to develop a global standing, employers have to ensure that they meet with a number of challenges when establishing themselves within the country.

Straight from the off with registering the business with the relative authorities, understanding the responsibilities and ensuring the correct payment amounts are received along the appropriate contributions, employers are required to be able to assist all of the complexities involved with and surrounding hiring or working in Germany .

Any person or company that fails to comply with the various and far reaching regulations and laws will have huge penalties and fines to face. It is therefore imperative that the distinctions of working in Germany are understood.

German Payroll: Getting Started

When starting a business or starting work in Germany, you can only hire employees after you apply for and receive a company number from the German center of employment. This eight-digit identification number is a principle measure to record your name, address and economy class of your company. For registering employees for social and health insurance, the number is also needed.

The company is also required to source a tax number, provided by the appropriate tax office (each tax office being based on the company trade). Finally, a bank account is needed and, with agreement along the local work council, determines the place, time and form of payments.

German Payroll: Employment Law

A further key to operating successfully in Germany is to gain an understanding of the attributes around Germanys employment law, as this defines and dictates the policies surrounding German payroll. As an example, the employment law states 'that all new employees have the option to join a union, work council or collective labor agreement'. This can resolve issues related to working decisions, times of work and allowances over wage. The law also defines the minimum wage amount, which varies depending on the industry while also covering collective agreements. The employment law also covers the legal entitlement to leave and time off, currently at least 24 working days per year.

German Payroll: Wage Payment

Employers also have to be aware of the regulations in relation to the payment of wages and salaries, governed by the civil code and industrial code of Germany paired with various collective agreements.
It is usual practice for payments to be transferred electronically via Germanys standardized file transfer and access management protocol (FTAM). Furthermore, after the employee approves the current payroll, they can authorize their bank to release payments to all employees, alongside all other necessary contributions (such as payments for health insurance companies).

A further important factor to bear in mind is the 13-month (or bonus payment) payments, as it is common practice for the whole of Germany to provide employees with a year-end bonus, alongside bonus paid when an employee takes a vacation .

Avoiding Costly and Damaging Payroll Errors

Payroll is now a complex issue. Long gone are the days when firms handed out cash to expectant workers who formed an orderly queue at the end of each week. These days, a range of issues have to be taken into account and the process of calculating employee remuneration is complex. If you're not careful,…

Payroll is now a complex issue. Long gone are the days when firms handed out cash to expectant workers who formed an orderly queue at the end of each week. These days, a range of issues have to be taken into account and the process of calculating employee remuneration is complex.

If you're not careful, you run the risk of making mistakes in terms of your payment of personnel, and this can have hugely negative consequences for both your organization and your staff members.

Any errors will take time and money to rectify. Meanwhile, if you underpay your workers, they are likely to be extremely irritated and may face serious practical problems. If you overpay them, your bottom line will suffer.

When payroll systems go wrong

When payroll services fail in some way, the organizations associated with them often hit the headlines. One recent example of this kind involves Brighton and Hove City Council. According to a report in The Argus, experts have warned that payroll systems for more than 10,000 public sector workers are open to a “high level of fraud and error.”

Criticisms have been leveled at a four-year-old program used by the local authority that was designed to save taxpayers money. Confidential papers seen by The Argus suggested that payroll staff are able to create 'ghost workers' without approval from managers.

Also, electronic, scanned signatures of senior managers can be used to create false information, meaning workers could sign off payments to their own bank accounts without approval. Furthermore, there are no warning systems to alert bosses to duplicate payments made to personnel.

The council is currently working to address the problems and, commenting on the issue, a spokeswoman said: “The audit report identifies all potential risk to make sure managers are aware, but it does not mean it has or will happen. pay services for the last recorded month was 99.75 per cent. ”

Bringing in the experts

The local authority is by no means the only organization to have experienced complications when it comes to staff remuneration. To help ensure your company does not suffer a similar fate, it may be wise to consider outsourcing payroll to a reputable company.

This can help you to avoid legal complications and even tribunals. Meanwhile, it's vital that your personnel are paid the correct amounts on time and with the right tax deductions.

It is vital to have an expert team on hand to help, when it comes to the tricky stuff, such as complicated obligations, variable working hours, weekly and monthly paid personnel and so on.

Freeing up your valuable time

Just like many of our other business services, assistance of this kind can free up more of your valuable time, enabling you to get on with the other contractual tasks facing your organization. It can also boost your peace of mind as you will know that experts are on the case, ensuring your workers get paid correctly every time.

Q&A on Payroll Management Systems

What is the payroll? A payroll is a company's list of its employees, but the term is commonly used to refer to: the total amount of money that a company pays to its employees. A company's records of its employees' salaries and wages, bonuses, and withheld taxes. the company's department that calculates and pays these.…

What is the payroll?

A payroll is a company's list of its employees, but the term is commonly used to refer to: the total amount of money that a company pays to its employees. A company's records of its employees' salaries and wages, bonuses, and withheld taxes. the company's department that calculates and pays these.

What is payroll management in HR?

Payroll referers to the process by which employees receive their salary. Functions involve balancing and reconciling data data and depositing and reporting taxes. The payroll department takes care of wage deductions, record keeping and verifying the reliability of pay data.

What is the process of payroll?

Payroll involves performing many tasks to ensure accurate and timely paychecks and pay tax and record-keeping compliance. Process the payroll ahead of time. Devise a payroll-processing schedule that allows you ample time to process the payroll and to correct detected errors before employees receive their paychecks.

How does the payroll work?

A payroll system involves everything that has to do with the payment of employees and the filing of employment taxes. This includes keeping track of hours, calculating wages, withholding taxes and other deductions, printing and delivering checks and paying employment taxes to the government.

How do you audit payroll?

A good time frame for scheduling a payroll audit is at the end of each quarter of business.
Verify Active Employees
Verify Pay Rate
Review Hours Paid
Compare Payroll Reports to General Ledger
Review Payroll Tax Submissions
Bank Reconciliation Review

What is the role of payroll?

The Payroll function is one of the fundamental functions of any organization. At the basic level, it ensures that all employees receive their wages. In practice, the payroll function extends to a fairly wide range of administrative and labor issues.

Why payroll is so important?

The importance of payroll in an organization. Payroll is an integral part of all organizations. The payroll department is not only responsible for employees' salary compensation, but it also plays a vital role in protecting the company's reputation by ensuring compliance with various legislations.

What are the uses of a payroll management system?

The Payroll Management System deals with the financial aspects of employee's salary, allowances, discounts, gross pay, net pay etc. and generation of pay-slips for a specific period. The outstanding benefit of Payroll Management System is its easy implementation.

What is a payroll administrator?

Payroll administration is defined as any of the tasks necessary to organize the compensation of employees for the hours that have been worked. This may include keeping totals for hours worked by employees, rates of pay and managing payments to employees.

What is a payroll management system?

A payroll management system is the system by which employers can pay the employees for the work they have completed. Although payroll looks like a mundane task, it involves many aspects including the withholding of taxes from each paycheck and making sure accurate funds are paid to the correct government agency.

What is payroll management software?

Payroll software is technology that aims to streamline and automate the process of paying a company's employees. Payroll software can be purchased from a human resources technology vendor or included as a module within a larger enterprise resource planning (ERP) package.

What is payroll accounting?

On the income statement, payroll expenses are part of labor costs. They include employee salaries, employer payments for health insurance or similar benefits, payroll taxes paid by the employer, bonuses, responsibilities and similar expenses.

Components of a Payroll System

To make sure that they comply with Internal Revenue Service (IRS) regulations and state and local government laws, companies must include contractual employee and company information in their payroll systems. Setting up and running the different components that comprise a payroll system requires due diligence and adequate knowledge of tax legislation.

Employee information

During the new hire process, companies must collect information such as medical insurance and W-4 forms to determine what should be deducted from an employee's paycheck. These forms also provide employers with critical information, such as the employee's Social Security number and their withholding amount for federal and state tax purposes. The system must also track and process changes made to the employee's tax exemption status, pensions, insurance plans or retirement funds.

Salary information

As part of the new hire process, payroll systems include a component that designates which employees are full time, part time and contractors. Classifying workers in a payroll system is important since the government levies high penalties on companies that categorize employees incorrectly.

Timesheets

Without knowledge of the number of hours an employee has worked, employers can not determine what to pay an employee. While some workers are paid a salary, others are compensated hourly or designated as nonexempt employees. Payroll systems include timesheet information or areas where hourly and nonexempt employee hours are recorded and reviewed for accuracy. Information can be collected through a computerized time clock, punch card stamp clock or paper timesheet.

Applicable taxes and obligations

Although the IRS provides companies with tax tables to calculate employee tax withholdings, vendors and payroll computer systems can also supply this information. Employers must consider year-to-date annual earnings, wage levels and tax allowances when summarizing applicable taxes. In addition, payroll systems must calculate payments made through pension plans, 401 (k) s, insurance plans, union dues and garnishments. The payroll department also monitors loans and other discounts that have cap amounts and ceases paycheck discounts when the total amount has been repaid.

Payroll register

The payroll register summarizes employee salaries and deduction information in a journal entry that is inserted into the general ledger for accounting and general research purposes. Payroll registers are also used to create tax reports. These documents are prepared by payroll staff or generated using payroll computer systems.

Manual payments

Occidentally, companies issue manual paychecks to employees between pay periods because of termination or a payroll error. Payroll systems must account for the check amount in the register register for tax and reporting purposes. This ensures that the employer's tax withholding amount is reconciled with employee payments.

Payroll refers to the administration of employees' salaries, wages, bonuses, net pay, and deductions. It consist of the employee ID, employee name, date of joining, daily attendance record, basic salary, allowances, overtime pay, bonus, claims, incentives, pay for holidays, vacations and sickness, value of meals and lodging etc. There are some discounts such as PF, taxes, loan installments or advances taken by employee. While administrating the monthly payroll basic salary, HRA, conveyance, and other special allowances such mobile, etc are considered. There are some deductions which are provident fund (12%) of the salary, taxes and other discounts.

Deductions such as tax and loan / advances taken by the employee from organizations are deducted only where applicable. Dearnce Allowance and House rent allowance is provided at a fixed rate stated by the employment law. Provident fund is deducted from the gross salary of employee on the monthly basis as per the employment law, which is provided later to the employee. Organizations also contribute the same amount to the governor fund of the employee.

Annual payroll consists of leave travel allowances, incentivies, annual bonuses, meal vouchers / reimbursements, and medical reimbursements. Allowances, incentives, bonuses and reimbursements are based on organizational policies. Some organizations provided the allowances on a fixed rate say 10% or 12% of the basic salary. Some organizations go for performance based incentives.

Significance Of Payroll Outsourcing

The outsourcing industry is growing at a higher rate. HR outsourcing helps the HR professionals free themselves from the daily routine work and take part in the strategic level processes. Organizations really do not take HR as a strategic function; it is merely treated as paper work division. Therefore they want to reduce the cost being spent on HR activities.

In India payroll outsourcing is one of the HR processes and is being outsourced since 1997. Payroll outsourcing involves an external organization performing all the activities related to payroll management.

HR Consultancies such as Ma Foi and many other firms have come up with invoicing outsourcing. The organizations use its marketing division thoroughly to acquire more number of clients and retain them. Payroll outsourcing does not provide much cost reduction but it yields in high quality. Since compensation outsourcing requires a lot of market survey and industry knowledge, it is not easy for an organization to carry the tasks with its operational business activities.

Outsourcing has benefited not only the service providers but also organizations and economy of the country. It enables the management to focus on the core competencies and strategic planning. It contains the confidentiality of the pay package offered to employees as it is an external body administrating. Organizations do not have to keep the track of law related to salaries and compensation; it is the outsourcing firm which has to look after it. It offers qualitative results. It is very much time saving and cost effective. It also offers legal protection as the outsourcing firm is liable for all the legal matters.

Outsourcing firms enjoys the revenue benefits as the services are being offered to MNCs. Service exports have caused the economic system to develop more and contribute to GDP growth.

IRS Payroll Tax Audits Create Havoc on an Employer

Payroll Tax Audits are conducted on businesses that have or have employees and either failed to file and pay the payroll taxes on Form 941 Employer's Quarterly Federal Tax Returns, misclassified workers as independent contractors when in fact they are employees or there is a mismatch between the W 3. Transmittal of Wage and Tax…

Payroll Tax Audits are conducted on businesses that have or have employees and either failed to file and pay the payroll taxes on Form 941 Employer's Quarterly Federal Tax Returns, misclassified workers as independent contractors when in fact they are employees or there is a mismatch between the W 3. Transmittal of Wage and Tax Statement, W-2 Wage & Income Statement and the Form 941 Employer's Quarterly Federal Tax Returns.

When a payroll tax audit is selected to be audited, the case is assigned to the Employment Tax Examination Program and then it is assigned to one of the employment tax auditors.

An employment tax auditor will seek bank statements, payroll bank statements, copies of Form 941 Employer's Quarterly Federal Tax Returns for a specific period, DE-9 Quarterly Contribution Return and Report of Wages and any other form or document that they believe will assist them in determining if all the employee's wages / salaries were accounted for on the tax returns filed.

For people who were incorrectly paid as independent contractors, laborors who in fact should have been reported as employees. Then, that is when the misclassification of employee audits steps into the investigation.

Internal Revenue Service and the State tax agencies have identifying factors for determining when a person should be an employee or independent contractor. File a Form SS-8 Determination of Workers Status for Applications of Federal Employment Taxes and Income Tax withholdings if you as an employer are not sure as to how to treat a worker.

Common Law Rules

Facts that provide evidence of the degree of control and independence fall into three categories:

1. Behavioral: Does the company control or have the right to control what the worker does and how the employee does his or her job?

2. Financial: Are the business aspects of the worker's job controlled by the payer? (these include things like how worker is paid, whether expenses are reimbursed, who provides tools / supplies, etc.)

3. Type of Relationship: Are there written contracts or employee type benefits (ie pension plan, insurance, vacation pay, etc.)? Will the relationship continue and is the work performed a key aspect of the business?

Mismatch between the Form 941 Employer's Quarterly Federal Tax Returns, the W-2 Wage & Income Statement and W-3 ​​Transmittal of Wage & Tax Statement can result in a computer audit.

Computer payroll audits are easily calculated from the tax return and statements filed by the employer. Letters, Notices, and results are issued to the employer. The audit result is usually recorded as due on the last quarter of the year in which the alleged mismatch was identified.

An employer is provided with a deadline to respond to the changes. Furthermore, you may have appeal rights. Always read all the notices, letters you receive. Many people do not open government issued letters and then they lament on the consequences for not complying with response time frames.

A payroll tax audit can lead to large tax bills that create financial havoc on employers. Large expenses that are paid to Accountants, Tax Debt Resolution Experts and Tax Attorneys to represent a company who has reclassified workers and now owe payroll taxes for the unreported wages / salaries paid to workers who should have been reported as employees in the first place.

A payroll tax debt can result in recording of tax liens, levies (garnishments) issued to accounts receivable, notes receivable, and bank accounts. Furthermore, if negotiations are not successful the tax agency will seize and sell your business to secure payment of the taxes overdue.

Do not attempt tax debt negotations without seeking professional assistance. The IRS Collection Officers are required to follow certain regulations, tax processes and procedures prior to implementing their collection efforts. If you do not know what resolution option you can request and what the requirements are for resolution. Then, your company may be subject to financial havoc and potential closure.

Do not forget or shred notices and letters mailed to you by tax agencies or employees of these tax agencies. There are so many appeal rights, time frames that require a response by certain dates. If these time frames and dates are not accepted with. Then, the IRS Auditor or Collector will have no option but to move forward with the next action that is required according to your case.

Liens filed against your company will affect your ability to borrow and will encumber any and all property that your company owns and possibly you as the owner, officer, member and or director of the entity that owes payroll taxes.

Yes, there is a potential individual liability for non payment of payroll taxes. Read Internal Revenue Code 6672. Basically, the IRS is required to calculate the amount of tax withholding, social security and Medicare taxes due. Then, letters are filed or provided to the potential responsible people or entities who failed to report correctly and pay the taxes accordingly.

These letters provide for 60 day time frame to request an appeal prior to the tax agency being able to create a tax bill against the individuals or entities that failed to abide by the salary tax rules and regulations.

Business owners, Directors, Officers and general public believe that because an entity is a Corporation, Partnership, Non-Profit or Limited Liability Company that this in itself protects them individually from being responsible for unpaid payroll taxes that the entity failed to forward to the government .

It is not wise to confront the IRS Auditor or Collector on your own. Even the best tax resolution experts encounter barriers to negotiate audits and debts. You just have to do your research and interview several tax professionals to verify which one will work in your best interest.

Simple Guide To Implement Job Costing For Payroll Expenses In QuickBooks 2018

SMBs and other middle-sized businesses have taken a resting breath after the moment Intuit, the designer of QuickBooks, declared cloud deployment in the QuickBooks software range. For business industry, the time is not less than a revolution period where most of the SMBs got the chance to cut out unwanted IT expenses. Intuit, the leader…

SMBs and other middle-sized businesses have taken a resting breath after the moment Intuit, the designer of QuickBooks, declared cloud deployment in the QuickBooks software range. For business industry, the time is not less than a revolution period where most of the SMBs got the chance to cut out unwanted IT expenses. Intuit, the leader of wisest decisions & strategies, chose third parties for server similar needs and soon got success in naming cloud network handling platforms as QuickBooks server. Presumably, the main vision of hand over hosting related tasks to third parties is to boost their future projects and focus on goals precisely.

Plenty businesses of today are unable to figure out the real aspects of profitability which in turns making it quite difficult for businesses to earn well. However, Job Costing is the accurate way to know the exact pay for each job and then it is very popular among task-based businesses. SMBs and even huge enterprises find job costing as one of the most intractable ways to cut the unnecessary wages that a company requests to pay to their employees in return for the work they had done. Construction firms, Professional service provider companies & other non-profit organizations are the major sectors that can have the pure benefit of job costing.

Steps To Setup QuickBooks Job Costing & Item Track paycheck Expenses !!

In order to get full benefits of job costing feature within your business plans, you need to first search out all the difficult job that is necessary as per your business requirements but not necessarily require full-time worker. Afterwhile, identifying jobs that are not so profitable for your business could also help to figure out where all the profit actually going!

However, these are the quick steps using which you can start job costing smart strategy within your business as well.

  1. Choose “Edit” from the top menu bar and then click “preferences”.
  2. Select “Accounting” from the pane opened on the left.
  3. Then, click on the “Company Preferences” tab.
  4. Ensure that the Use class tracking box is marked with a tick and Click “OK”.

Note: Mistakenly, If the checkbox remains unchecked then the options to Assign one class per Entire paycheck or Earnings item will not be available.

  1. Similarly, Revise Step 1 and select “Payroll and Employees”.
  2. Then, put the check mark in the Job Costing box and click “OK”.
  3. Further, checkmark on class and Item checking for paycheck expenses and decide how you want to track via Entire Paycheck or Earnings Item.

It is equally important to keep in mind that whenever you create or edit payroll items in the QuickBooks software, one checkbox “Track Expenses” is being displayed on the desktop. On selecting this checkbox, QuickBooks desktopifts all the items on employees paychecks just the way it does company-paid taxes.

Quick Points To Remember While Implementing Job Costing In QuickBooks

  • Commitment to understanding the perks job costing going to offer to your business.
  • Enabling Estimates in your QuickBooks software and also selecting Yes under “Do you create estimates?” and “Do you use progress invoicing?”.
  • Assigning Expense Account to subcontractor items to make fetching of working hours easy and hassle-free.
  • Create jobs for your business by noticing each and every expense that you need to pay while serving customers.
  • Use Estimates and Progress Invoicing to change orders correctly and consistently right after knowing the issues.

Without asking for extra expense and effort and integrating into the ongoing accounting software, Job costing let you have the rewards of enabling cost tracker for manufacturing jobs and saves you from the long process of calculating.

Importance of Bookkeeping Services for Small Businesses

Financial services enable to focus on the growth of the organization. The bookkeeping service is probably the pivotal part for the success of the organization. If you want your business to grow more, do not underestimate the importance of bookkeeping. Accounting services are preferred for small industries as accounting work can be a time-consuming process…

Financial services enable to focus on the growth of the organization. The bookkeeping service is probably the pivotal part for the success of the organization. If you want your business to grow more, do not underestimate the importance of bookkeeping. Accounting services are preferred for small industries as accounting work can be a time-consuming process and complicated too. So always take out a proper time while looking for because an effective bookkeeping is a great help in providing start-up ventures as well as small-scale businesses. As it is a complicated process which needs valuable time and efforts, therefore in order to make your work lesson and to resolve the challenges of bookkeeping it is important to hire a professional bookkeeping service provider, it is a very important step to reduce your burden and make the task easier by hiring an experienced and intelligent service provider for your accounting needs.

They are known for not only for reducing the work and burden but also for maintaining a balance in credit and debit transaction. Organizations pay them for their accuracy, expertise, honesty, ability and for punctuality. The bookkeeping service providers play a vital role in maintaining the accuracy of reports and data.

There is no denying that these professional accounting services saves your time, money and energy from a significant amount of distraction and enable you to put your efforts, time and energy in the other core business processes. This will be an advantage, which helps you in achieving a high level of growth in the market. If you are looking for the edge of professional bookkeepers, no doubt you are going to entitle yourself to numbers of benefits that include:

Accurate and up to date Bookkeeping & Accounting services improve the ability of a firm to focus on business growth and simultaneously truncate the risks and costs too. There are various Firms for same services that work for small and medium businesses across the globe.

· They make your data secure through a high-end facility of safe data centers.

· Cost effective services and reduces the cost

· Use of high fidelity software for these services which will make bookkeeping and accounting work a piece of cake and simple too.

· A smooth facility of control prevails to biometric access

· A Professional bookkeeping service is responsible for completing inventory system, reconciliation, annual and IT3a Documents specifically on time which enables you to complete all the documents easily and promptly.

· A much enhanced as well as quick preparation for all the tax work and accounting.

There is no demur that professional Payroll companies offer a unique and excellent treatment to all your needs specifically for bookkeeping and accounting work. All over the business owners and organization globally understands the needs and tremendous work of these service providers. Sincerely on these service providers results into the growth of the company. The organization will shortens their work and not only save them from a headache but also at the same time they will make sure that all the business processes undergo an efficient manner. These bookkeeping service providers add value to your business and your professional growth in a prominent way.

Stuck With Payroll and Tax Management – Choose the Right Service Wisely

The Juggling Act Running a business is a tightrope walk. Paying salaries on time, meeting business expenses and generating profit among others is a herculean task. The law mandates that you pay your taxes on time and also manage your books properly. It's like juggling balls while performing a tightrope walk. Because, there is a…

The Juggling Act

Running a business is a tightrope walk. Paying salaries on time, meeting business expenses and generating profit among others is a herculean task. The law mandates that you pay your taxes on time and also manage your books properly. It's like juggling balls while performing a tightrope walk. Because, there is a lot to manage. From payroll to taxation, bank reconciliation to deduction of taxes, the list is long. To make matters worse, every single mistake is penalized and many businesses end up paying heavy fines due to such mistakes.

The Saviors

Big businesses are able to manage this with the help of separate accounts departments but this is a costly affair. Small businesses running with small teams and tight expenses can not do this with the same efficiency. For such businesses, there are two viable options to choose from. Either they can opt for a payroll management software or they can engage a third party payroll management company.

1. Payroll Management Software

The payroll management software is a good option for small firms. Businesses having small teams, stable business and transactions within the state can easily navigate with them. If you are ready to invest a specific amount of time with consistency to accounts management, they'll work. These programs can present the data in an organized format and simplify your work. But, the chances of error are always there. The person responsible to input the data into the system is you or your representative. If you commit mistakes in keying the data, the software would get helpless and give erroneous results. This brings you back to square one.

Absence of revalidation system

The absence of someone to revalidate the entries is a problem every small business is battling with. If you try to engage someone then the cost of labor and time would make this feat overly expensive. If you do not then there will always be a chance of mistake.

Problems with complex data

The other issue with such programs is that they have to be managed carefully. Too many variations in the structure of entries can create a lot of confusion. If you have engaged part-time workers along with your steady work or make payments to freelancers or other third parties, adjusting their payments can be a big nightmare. Calculating the various tax slabs when doing interstate business is also cumbersome in these programs.

Good for simple transactions

There is no doubt that if you are running a simple business without too many variables then these programs can prove to be a very cost-effective solution. But, running a diverse business dependent on them can be asking for too much.

2. Third Party Payroll Management Services

The more viable option for complex scenarios is to hire a third party payroll management service. These agencies with their certified staff can handle the job in an efficient manner. Along with payroll management, you can delegate a number of other important services too like tax management, accounting, balance sheet preparation, bank reconciliation, tax deduction and deposit.

Revalidation of data at various levels

Due to the presence of a structured team of professionals the data is checked at many levels and hence the chances of mistakes are negligible.

Cost Effective

These agencies are very cost effective in their service. The same job can not be executed by an in-house team under the same expenses. In small businesses, the staff will be idle most of the time. In medium businesses, it will be overworked. When calculated on the basis of return on investment, these services are very cost effective.

The Human Touch

The other advantage is of human help. In case you get stuck somewhere about any technical clause or want expert advice these agencies can provide legitimate help.

No Binding Obligation

The biggest advantage is that these firms operate out of your office and hence no infrastructure charge or overhead expense is there on you. You only pay for the services required without any undue obligation.

So, if you are running a small business and finding it difficult to navigate the confusing path of taxation, payroll management and other technical accounting aspects then you can choose the right service for you. This will help you in focusing on your core strength of business development and no energy would be lost in managing numbers in the books.

HR Outsourcing: A Start-Up Silver Bullet

If you are considering a start-up, you may want to avoid the hassles, headaches, and burdens involved in building out your HR infrastructure. The big guys are doing it! As recently as the early 90's HR outsourcing was a very small, emerging option that was met with skepticism by big business (over a billion in…

If you are considering a start-up, you may want to avoid the hassles, headaches, and burdens involved in building out your HR infrastructure.

The big guys are doing it!

As recently as the early 90's HR outsourcing was a very small, emerging option that was met with skepticism by big business (over a billion in revenue). These early outsourcing companies did not have the tools, paths or resources to meet the demands of their early adopter clients but with the vast improvements of the internet and workflow processes, by the early 2000's outsourced HR had become a 165 billion industry.

Not only did it grow but it grew very well in regards to retention. An Accenture study in the mid-2000's had shown that over 80% of companies that chose to outsource HR functions were happy at the management level as well as the employee level. During this period, the Shell Oil Corporation was able to reduce HR infrastructure and overall HR costs by 40% while improving benefits and employee retention.

Great, it works for the big guys, what about the start-up?

With this in mind, anyone considering a business start-up can be free to remain focused on the business they are developing trying trying to meet compliance, policy issues, and finding all the right tools to track all employee needs. This cumbersome task is time-consuming as well as costly.

With a little research and due diligence, a start-up can identify cost effective solutions that are now plug-n-play and will be developing a partnership with their provider. Many of the options in today's market place are well suited to grow as the undering start-up grows.

Any glance at today's startup world shows the great need to get HR correct from the start instead of the mad scramble that seems to be in the news on a weekly basis as companies fail in this most critical issue in running a business.

Cash is king!

As a start-up, keeping cash as long as possible is always important. What many new businesses fail to see is that high-cost investments into HR infrastructure have no ROI, these costs can be avoided by tapping into the outsourcing company. Yes, there remains a cost but is spread out over each new hire.

Two other cost saving benefits that many are not aware of in today's market are, pay as you go worker's compensation and payroll funding. Each of these silver bullets can be a cash saving life line for any new business.

With proper vetting, all these great tools can be a part of any start-up who chooses to outsource their HR infrastructure.