Filing A Payroll? Here Is the Entire Process

Being a business owner, it becomes important to understand the value of payroll in detail:. Payroll Services is a part of every business and there is no doubt that it is quite challenging for the business.
It refers to the total amount that is paid to the employees by the employer. To handle time-to-time financial records of employees and to check the distribution of wages among employees, it is very essential to know how the payroll is processed?

What are the steps of processing payroll?

The payroll process is complicated but the steps will make it easier for you. Now, let’s jump into the process to get a better understand on how its work.

1. Hire an employee

You either already have an employee if you’re reading this, or are considering recruiting one. To ensure that your organization runs in profit, hiring a right worker becomes the first importance factor. We have come up with an effective recruiting strategy after that will ensure that your recruit a right person at the right place on right time. That’s a separate topic, however, that I will not get into in this post. We recommend reading Who: The “A” Recruiting Process for a successful starting position. The employee can, alternatively, be you. If you operate your business through a different agency, such as a trust, paying yourself as an employee may be a good option. After reading our article on wages vs. dividends, you will learn more about the various ways to pay yourself through a company.

2. Gather all the required information

Whenever there is any new recruitment in the firm, you need to collect all the required payroll data. Your company or the owner must hold amounts of state and federal taxes and must withhold money for employee benefits.

Here is the information that you need to collect –

  • TDI forms must be filled and signed by the employees.
  • Their mailing address
  • Social insurance number
  • Bank account details where you need to send the payment.
  • The employee’s contact number

3. Select the Right Payroll method - Software or Application?

There are many payroll software or apps in the market using which you can send the payment to your employees while maintaining a fine ledger and calculating the deductions and emittances. If you opt for a manual method of payroll, you are definitely going to fall into a pitfall of errors. Depending on the need of the business, choosing a right payroll tool becomes important.

4. Payroll Frequency

In order to proceed further, let’s first decide the payroll Accountant to frequency for your employees. There are two most common payroll frequencies that are widely used in the US – Bi-weekly, and semi-monthly. Just a tip – if you are paying your employees hourly, it is wise you go with the bi-weekly plan on the other hand if you have employees on salary, semi-monthly is a good option for you.

5. Registering your business

It is import to get your business registered. Get a registered business number, if you have not one yet. To find out everything about business registration you can check out the process here. In case, you have registered your business, all you have to do is call the CRA business inquiry line at 1-800-959-5525 and ask to register for a payroll account.

Well, Payroll Services is time-consuming but can help you to track business finances. Now as you are aware of the steps, make sure to leverage the information and amplify your organization’s efficiency.

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