With payroll software one cannot not stop and think…’how did large organizations cope without them?’ When you think of what’s involved in paying your employee, one finds it hard to believe how this can be achieved without a full blown payroll software.

There are various payroll software applications on the market today, but how do you decide which one is right for the business you conduct? Let’s start by having a look at the main items a good payroll software application must possess.

1. create and manage detailed company details

2. create and manage detailed employee details

3. can be run during a specific date range (normally weekly, fortnightly and monthly)

4. processing of individual departments or all departments

5. accountability of all emoluments and tax paid for each employee and department

6. standard tax reports as required by the local authorities

7. flexibility in allowing bonuses, overtime and special end-of-period additions and deductions

Needless to say, a good payroll software program holds many features which reduce paper work needed to control your employees’ remuneration. Having said that, some required paperwork like pay vouchers, checks, company reports and tax reports are a must for any payroll software.

But what is the main feature a payroll software application must excel in? Without any doubt this has to be security. Payroll software databases hold one the most sensitive information a software application can hold. By many, the salary they get is considered as the most well kept secret in their lives. That information is probably held in a computer somewhere forming part of a payroll package. As such, confidentiality of that information must be stressed heavily and checked thoroughly when one is enquiring on payroll software.

But most payroll software applications are not stand alone modules. Many come integrated with other modules like the purchases ledger, general ledger and/or job costing module. If you have a production business, having your payroll software integrated with your job costing module is, to say the least, a must. This will ensure your costing is truly reflecting all the costs your business is incurring, and the payment of your employees, including taxes, is definitely one of them.

As like all tailor made software, a payroll software application would normally require user training before one can reap the benefits from it. Payroll software is quite a complex piece of software and the fact that people are employed in human resources departments just to be responsible for the payroll aspect of the company is proof of this. This is true, although, the payroll software used should also be straight forward for clerks who work in a payroll environment. It should be intuitive and present all tasks in a simple and clear format, with help available on the spot.

Since many payroll software exist today, it is very hard to determine which one is right for your business. The decision needs to rely on the structure of your business, number of employees, different work times and shifts, plus other factors. Based on this, a standard payroll software might do, or maybe not. What’s important is that before committing to one, and probably also, before being trained on one, all the features (and non-features) of the package you choose have been made clear and proved to function correctly and as desired.

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Numerous outsourcing companies now function to provide payroll tax outsourcing services to corporate clients with regard to payroll tax. Payroll tax is a regressive tax and more expensive than income tax, which pays for two social insurance systems namely Medicare and Social Security.

The payroll data is to be given to the payroll service provider. This can be done through a telephone call, fax or via the internet. Payroll tax outsourcing will eliminate workload in the areas of processing payroll tax and related aspects. Experts at the outsourcing agencies will manage monthly or quarterly employment tax reports and submit them correctly and on time.

Payroll tax calculations will be different according to the area and the structure of the firm. 940 and 941 tax issues require a complex understanding of the differences in the revenue code between these taxes and personal income tax. Most of the payroll services offer the option of filing state and federal payroll taxes for your business. Several avenues of tax relief exist in both federal and state tax codes. The services provided by the outsourcing company also include finding these avenues and reducing your overall tax. The companies balance QTD/YTD deposits to liabilities to ensure all your payments are accurate.

Payroll tax outsourcing service providers also give guarantee for their work and assume the penalties that may arise in the wake of incorrect tax calculations. Most of these companies offer the support for payroll tax data extraction, payroll data migration, wage garnishment distribution, and payroll tax filings. By outsourcing your complete payroll tax you can have a risk free compensation at market rates for your tax funds awaiting payment, tax payment management and no penalty payroll tax payment.


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Finding free payroll software can be a tough task. It is also not an ideal solution for most businesses. The ideal payroll software helps companies to easily process employee payrolls. Tracking of tax withholding, vacation time, over time and other benefits are some of the other important features found in most payroll software. When you opt for a free payroll software, most of these features might be lacking and some free software come with pop ups and other product advertisements.

If you are a first time user of payroll software, then it is a good idea to use free payroll software as it gives you the much need information regarding the software and its worthiness in your organization. Most free payroll software will have certain basic features and you will be asked to pay certain amount to use the other features. The basic idea behind free payroll software is to attract you to the product.

Almost every supplier of payroll software offers a free trial version of payroll software package. This gives the business owner a chance to use the software package for free and to identify whether the software is able to meet the demand of the company. At first, you can download, install, and try the payroll software package. This free trial version in most cases will be far more superior than the free payroll software is. Most free trial versions opens up all the features to its customers. If it you find the software suitable, then you can choose the service of a good software solution by paying an amount. Sometimes, the monthly charge can be as little as $20.

Free payroll software is often hunted by small business establishments as they do not need all the state-of-the-art facilities. But, most free payroll software providers do not give any service and this can sometimes create tough situations for its users.

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familiar with:

Business License/Certificate
If you originally organized your business structure as a one-person operation, your current license and certificate may not be sufficient. Contact the agency where you initially filed to inquire as to whether you will need additional documentation when hiring employees.


Insurance
When you selected business liability insurance, you chose a policy that was right for your company at that time. However, bringing in employees often increases risk. Speak with your insurance agency to determine whether you need to raise your coverage. Also speak with an attorney about liability for your employees’ actions. For example, if an employee steals from a customer, will your company be liable?

Make sure that your business is fully protected against employee actions as well. What if an employee steals from the company? Will you have to eat the loss, or do you have insurance that covers this event?

Workers compensation is another important concern. If your employee is injured on the job, the company may be held responsible for his medical treatment. Be sure that you carry sufficient workers compensation insurance.

The topic of business insurance is extremely complicated. It is highly recommended that you work with an insurance agent that specializes in small businesses, as well as a qualified attorney, to ensure that you are carrying proper insurance.

Employee Taxes
From Social Security and Medicare to income tax, you may responsible for tax withholdings from your employees’ paychecks. Tax law is specific, detailed and ever-changing. The penalties for errors may be severe. Never attempt to set up employee withholding without speaking with a qualified professional such as a CPA or tax attorney.

Job Application/Identification Documents/Other Paperwork
Depending on your type of business and the area in which you live, you may be required to keep employee files. The requirements for these files may include a formal job application, copies of identifying documents, trade certificates, college degrees and any number of other documents. Even if these documents are not required in your state, they may become necessary should disputes arise. Speak with a qualified small business professional or an attorney to develop an employee records system that is accurate and contains all necessary documentation.

Obtaining Outside Help
If the tasks involved in setting up and maintaining personnel records, tax withholding and other paperwork seem daunting, you have options for reducing your paperwork load. Consider utilizing independent contractors rather than employees whenever possible. A Virtual Assistant company such as IAC Professionals can handle many of the same tasks as an employee without the paperwork requirements.

If you need to hire full-time employees, your VA company can again assist. Consider outsourcing payroll, tax withholding and other paperwork tasks. You can outsource as much or as little work as you need, and maintain as much control over the process as you see fit.

No one can or should handle all aspects of running a company alone. Outsourcing to a VA company such as IAC Professionals is a great way to minimize the time and energy that must be invested in new employees, while keeping costs down and allowing you to focus on the tasks that you do best.

If you have any question about Employee Paperwork, contact us today.

IAC Professionals is a single source for contracting qualified professionals to assist you with your most critical business needs. They offer a wide range of outsourcing solution which include Accounting, Bookkeeping, Virtual Assistants, Company Formation and Business Consulting.


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Along with the boom of the cafe industry came the clamor for furniture that will be suitable for this kind of business. Cafe owners search far and wide, hoping to find the perfect pieces that will beautify their cafe, knowing that furniture contribute largely to the success of a coffee business.

As a cafe owner, you know that durability and quality are the top qualities to look for when buying furniture. But aside from these two, there are many other things that you should keep in mind when you go furniture shopping. Here is a list of things that you should know before you buy cafe furniture.

1. Colors have effects on people. Most people think that colors are aspect of design meant simply to please the eyes. What most of us do not know is that colors have psychological effects on people's feelings. Knowing what the effects of colors are in people will make it easier for you to make your choice. For instance, you should know that shades of brown, yellow and orange on your wall will give your cafe a warm and inviting ambience while blue is not a good idea for table tops because this is the least appetizing color.

2. People go to cafes to relax and unwind. Knowing this will tell you that it is essential to buy furniture that will provide customers with utmost comfort and relaxation. It is smart to invest on couches, a common find in many cafes, because they are comfortable to sit on and allows customers to unwind and chill out.

3. Ambience matters. You should know that coffee is not the only thing that encourages people to go back to your cafe. The atmosphere also plays a vital role in drawing and attracting customers to your business. Your furniture should give off an inviting, relaxing and light atmosphere, which can make customers' stay worthwhile and enjoyable.

4. Furniture should blend well with the theme of the cafe as well as with the design and color of the interior. If the theme of your cafe is ultramodern, you have to buy pieces that are made of leather and metal and have colors black or red, whereas if your cafe has a rustic theme, orange and brown are ideal colors.

5. Form is just as important as function. When buying furniture whether for commercial or private use, you should always strive to achieve balance between form and function, which work hand in hand in making the furniture a worthy investment. Choose pieces that are not only aesthetically pleasing to the eyes but will also be highly functional.

6. Furniture will be subjected to daily wear and tear. Because of this, it's crucial that you only invest on the highest quality of furniture that will assure you of durability and permanence. Some of the ways to assure this is to buy only from reputable furniture suppliers and to examine carefully parts of the furniture before purchase.

7. Extremely cheap furniture usually means poor quality. If you think you're saving a few dollars by opting for cheaper furniture, you're wrong. You may end up spending even more because this pieces which are usually poor in quality, easily get damaged. You will have to spend a lot of money and time for repairs and replacements, which could have been avoided if you have prioritized quality over price in the first place.

8. Furniture contributes to the efficiency of the staff. Excellent furniture will maximize the productivity of the staff so it's best that you opt for these pieces that will enable them to give competent service to the customers.
Finding the pieces that will fit perfectly with your cafe may not be that easy. It will entail you to spend time and money as well as require you to be resourceful, creative, and patient. But you can be sure that all your efforts will be worth it since furniture will be a big factor to the success of your business.

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Beginning July 1, 2007, payroll card accounts will be subject to Regulation E, according to a final rule adopted by the Federal Reserve Board on August 24. Reg E implements the Electronic Fund Transfer Act. Payroll cards issued by an employer, a third-party payroll processor or a depository institution will fall under the jurisdiction of Reg E as a result of the amendment.

The rule does not require institutions to provide paper periodic statements to consumers if account transaction information is made available by telephone, electronically or by request. The rule also models disclosure clauses and forms.

Payroll accounting, 2008 ed. (CD-ROMs included)

Bieg, Bernard J. and Judith A. Toland.

South-Western College Pub.

2008

$126.95

Paperback

HF5681

This textbook covers all aspects of payroll accounting, from computing wages and salaries to unemployment compensation taxes. For this edition, Biegs and Toland (accounting, Bucks County Community College) incorporate technology further and include a shortened payroll project, as well as updates to the text to reflect the latest laws. It comes with two CDs containing a tutorial for ADP PC/Payroll for Windows and Klooster & Allen's Computerized Payroll Accounting Software.

On the surface, payroll accounting appears to be a very straightforward and easy subject. Wages and salaries are paid out of the cash account on a regular basis. Payroll taxes are withheld and deposited in a timely manner. Just debit payroll expense and payroll tax expense, then credit cash and the job is done. But an in-depth look shows many complexities and several areas which must be considered.

Let's divide our discussion into three major areas and first look at regular payroll and the related taxes and withholdings. In many businesses, usually on a Friday. These expenses are paid on a weekly basis, usually on a Friday. These expenses are generally recorded only when paid. However, at the end of an accounting period, in order to more accurately match revenues and expenses, a liability for unpaid wages is recorded. The entire accrued amount can be recorded as wages payable with no attempt made to identify any related withholdings, or a separate liability for wages and for each of the related payables can be recorded. The reversing entry in the first case becomes somewhat more complex because gross wages accrued must then be allocated to all the proper accounts, such as payroll taxes withheld, insurance and union dues.

We have now accrued any unpaid wages and the related withholding. So our second area of discussion will cover employer expense related to payroll. The most apparent expense is the employer payroll taxes, including the employer share of FICA, and federal and state unemployment taxes. These amounts are usually accrued at the time wages are paid. And so at the end of an accounting period, when unpaid wages are accrued, any related employer payroll tax expense must also be accrued.

All the accruals mentioned so far are standard in any business. But other payroll related expense will vary from company to company. And so, the accountant finds that he must review the firm's employee policy to verify that these expenses have been handled properly. He must determine what portion, if any, of employee handled properly. He must determine what portion, if any, of employee medical coverage is paid by the employer, whether life insurance is provided, and whether any other employee expense such as organization dues is covered by the employer. The accountant also needs to know if differences on coverage exist which are based on length of service or salary scale. And, of course, the date on which the last payment was made to the appropriate agency will play a role in determining the materiality of the accrual. If for instance, a payment was made to Blue Cross for health insurance two days prior to the end of the accounting period, the amount remaining to be accrued for those last two days may not be material enough to consider.

Third and last, we come to an area usually referred to as "Compensated Absences," vacations, sick leave and paid holidays. Again, a liability should be recognized when it is expected that employees will be paid for these absences. And the matching principle further indicates that these costs should be matched with the revenues from the same period. FASB Statement No. 43 states that an employer should accrue a liability for compensation of future absences if all of the following conditions are met:

1. The employee's right to receive

compensation for future absences

is attributable to employee services

already rendered.

2. The right vests or accumulates.

3. Payment of the compensation is

probable.

4. The amount of the payment can

be reasonably estimated.

So we see that here again the accountant must have some knowledge of the company's personnel policy. Are sick days and/or vacation days vested, that is, do they continue to accumulate until the employee terminates at which time payment is made? Is there a limitation to the number of days vested, which would then limit the amount required to be accrued? If the rights do not vest until termination, is there an accrual from one year to the next? Are unused vacation and/or sick days paid at the end of the year if they are not used? All these questions must be answered in order to make a correct accrual. FASB Statement No. 43 makes an exception when sick days are accumulated but not paid unless used. No accrual is required in this case, but one may be made. Whether or not these days will be used is guesswork and the difficulty of trying to make a reasonable estimate indicates that an accrual is not necessary.

There is one additional area of employee expense that must be considered for accrual and that is pensions and profit sharing. But that subject is complex and is made up of many facets, so we can save it for another column.

As you can see, payroll accounting can be somewhat more complex than believed at first glance. And just to add a little challenge, I'd like to introduce a new feature for this column, a monthly problem. See how well you do on this month's quizzer. The answer will appear in next month's column.

This textbook gives accounting students practical experience in calculating payroll, completing payroll taxes, and preparing records and reports. Updated to reflect recent tax law changes, the 2007 edition features the addition of a second series of practice and review problems. One of the accompanying CD-ROMs contains a tutorial on ADP PC/Payroll for Windows. The other contains Klooster & Allen Integrated Accounting for Payroll software.