Payroll processing can often be quite intimidating, especially without the right tools and measures. While payroll irregularities can impact whole other proceedings, employees are the ones that are hit the most.

Here is a brief guide focusing on the specific aspects of payroll processing from Virtual Jeannie Bookkeeping.

What Is Payroll Processing?

Payroll processing is all about managing employee payments while adhering to certain regulation clauses like Provident Fund, PT, and labor laws. From enrolling an employee to your payroll to handing them their paychecks — it’s all part of the payroll processing.

While payroll management can be a simple task for small businesses, it requires professional assistance to process large systems with more employees. For this, you can turn to payroll processing companies near you to help your organization with advanced payroll accounting software.

How Much Time Does It Take to Process Payroll?

Payroll processing is not a time-consuming process when you work with the right tools. Automated payroll systems only take a few minutes to calculate your inputs, including pay rates, time data, and additional earnings.

Then, you are provided with all the preview reports within 25-30 minutes. Following this, you can get the checks printed, mailed, and submit the ACH file to initiate the direct deposits. Based on the complexity of your company and its size, payroll can take a few minutes to a few days.

However, the time for those checks to make it to your account depends on the type of deposit, i.e., the same-day direct deposit or the next-day direct deposit. All in all, it may take around two days to process the payroll.

Steps to Process Payroll

Payroll processing is an integral part of operating a business system. Hence, it’s necessary to understand what processing the employee payroll follows. To help you with the insights, here’s a step-by-step guide:

  • Pick the right payroll system: Choose a system depending on how you wish to process payroll. Decide whether you want to operate it manually, use software or hire someone else for the job.
  • Implement a payroll policy: Create your payroll policy by entering the pay dates and modes of payment.
  • Collect and enroll employee’s data: You’ll need employee’s information to process payroll. For this, you can refer to their W-4s, I-9s, and other state withholdings.
  • Set up direct deposit: Direct deposits make payroll processing convenient for both employer and the employees. You can set up direct deposits directly via your business’ bank or your payroll provider.
  • Work with a time tracking system: Track employee working hours to calculate accurate payroll and for recordkeeping.
  • Collect timesheets from your employers: Collect and add up the timesheets and check for any errors while importing or transcribing the numbers to your payroll.
  • Check, approve, and submit payroll: Once reviewed, it’s time to run the payroll and issue the payments.
  • Update your payroll records: Regularly update your employee payroll records to avoid any business fallouts.

If you are struggling to manage your business finances, Virtual Jeannie Bookkeeping Services Inc. can help you through the struggle. For many years, we have been a trusted partner for businesses who are looking to take one more task off their plates. Reach out to us today at (707) 664-1425.