To conduct my test-drive of OnPay’s platform, I used the Google Chrome browser on a Windows laptop and an Android mobile device. Square Payroll helps you pay your people and protect your business so everyone is happy and productive. Some hourly workers aren’t covered by the FLSA but they’re subject to other regulations. Railroad workers are governed by the Railway Labor Act and truck drivers fall under the purview of the Motor Carriers Act.
What is the payroll process?
How your payroll administrator manages time and attendance – whether it’s a time clock, a mobile app or a pencil and paper – is entirely up to you. Keep in mind, however, that doing it manually opens the door to human error. You can help eliminate many of these mistakes, speed workflows and make the payroll manager’s job easier by using an automated time and attendance solution that integrates with payroll. This means that you need an accurate means of tracking time and attendance so you can apply overtime wages in accordance with the law. One way to maintain those records is to track hours manually and ask employees to write down when they clock in and out.
- The right payroll software or service for you depends on a number of factors from how much you have to spend to how many employees you have and which states you operate in.
- They pay 6.2% of your income amount toward Social Security and 1.45% of your income amount toward Medicare so the government gets a total of 15.3% of your total income for these two taxes.
- It also gives you greater control in managing your tax withholdings.
- We reviewed dozens of payroll services to find the best options for small businesses.
- The payroll software you use should integrate with QuickBooks or whichever accounting software you use to keep an accurate record of payroll history in the event of an audit.
Payroll software
They do wish that Justworks offered more in the way of integrations with popular accounting and other software and some express the need for more customizable platform features. The next step is to calculate all the payroll payments within your organization. If you’re doing this manually, you’ll need to determine the gross pay of each employee for the pay period in question first. For hourly employees, all you need to do is multiply the number of hours worked and the employee’s hourly rate.
How to classify workers
Users say the software’s customer support representatives are friendly but sometimes slow to respond. They also say the software is pricey compared to other payroll software options. However, they like that the platform is easy to use, offers guided setup and training and all the basic features most businesses need to manage their payroll and HR needs. In addition, ADP RUN offers all the features you’d expect in a payroll service. It has tiered plans with payroll by direct deposit, a self-service employee platform, new hire onboarding and optional benefits administration for additional fees.
When To Choose Payroll Management Software
- The co-employment relationship also means Justworks takes on some legal employer liabilities so you don’t have to, which isn’t the case for software-based payroll services.
- Because you don’t know when someone will cash a paycheck, it becomes more difficult to ensure you always have sufficient funds in your bank account.
- Just like Form W-2, you’ll also send copies of Form 1099-NEC to the IRS.
- We recommend using payroll software if you are processing payroll for anyone other than yourself.
- Bonuses and commissions can also be paid during a regular pay run, or you can issue them by creating an off-cycle payroll.
- But the half day it takes to audit the system and find pain points or weaknesses will pay off later when you have a payroll solution that perfectly suits your business.
We’ll help collect any necessary information and process your first few payrolls for a smooth payroll management transition. The hourly rate, total hours worked, gross pay, net pay and deductions are usually required details. Avoid violations by contacting state labor departments for specific pay statement guidelines. Your employees should know how to log their hours – time clock, paper timesheets, etc. – the approval process, and disciplinary action for submitting false records. If you have few employees or a very simple payroll, the process shouldn’t take more than a few minutes. Depending on which service you use, you may be able to let payrolls process automatically (assuming there are no changes from the previous run).
Determine Other Deductions
Many businesses decide to process payroll manually on their own when first starting out. While this doesn’t incur third-party costs, it can be difficult as your business must keep track of many different types of employment payroll & bookkeeping records when you start paying employees. These records include income tax withholding, Social Security tax and federal unemployment tax. The best payroll software for your company depends on your business size and needs.
- The business is responsible for submitting both the employee’s and the company’s contributions to Social Security and Medicare.
- Assessing your payroll system’s efficiency might seem like an unnecessary chore that just takes time away from your day-to-day operations.
- For example, workers must submit accurate information and managers need to promptly approve timecards in order for payroll processors to manage payroll correctly and on time.
- Half is a direct expense to the company and the other half is withheld from the employee’s paycheck.
- If you are planning to expand your workforce, carefully consider how your payroll service cost will change while you are growing.
- Having premium benefits will motivate employees to improve their performance and productivity.
