An enterprise or company is not established with brick and mortar only it is established by the hard work of the employees working in the organization. A business or an enterprise is nothing without hardworking and passionate employees. So if you have employees working with you then you definitely need a payroll service. A payroll can be defined as the process of calculating the salaries and withhold taxes of each employee working in an organization. Payroll is also known as the process of keeping the records of each employee working in the organization which includes personal information, salaries, withheld taxes, deductions and bonuses. There are basically two types of Affinity Payroll Services which are known as outsourcing and insourcing payroll services. In outsourcing payroll service an organization simply hires another organization which will provide them with the payroll of their employees. And on the other hand, in an insourcing payroll service, the organization itself looks after the payroll of their employees and both have their pros and cons.
Why do you need a payroll and what does it provide you with?
- Employee information: Before running a payroll you need to collect information about your fellow employees and they usually fill out a form to provide you with the essentials. And you can easily get to know the social security number, address, tax withholds and overpay of every employee.
- Wages Salaries: Payrolls helps you to calculate the salary you need to pay to an employee on a weekly or monthly basis. Well, it also helps you to calculate wages you need to pay an employee and the wages are usually paid on hourly basis. There are numerous software which helps you to directly calculate and keep track of the payrolls of every employee who is working with you.
- Payroll taxes: Usually you have to deduct payroll taxes from the salary or the wages of the employees. The amount you withhold depends upon the salary or the total earnings of each employee and also depends upon the withholding allowances an employee claims.
- Deductions and overtime pay: Payroll helps you to calculate deductions if any from the wages or salary of the employees. It also helps you to calculate overtime pays for the non-exempt employees who are paid on an hourly basis.
- Gross and Net pay: Payroll provides you with the gross pay of an employee and the employer is asked for the gross pay of all the employees by the IRS. Which is the total net annual income of an employee and when all the taxes are deducted from the gross pay the amount left is known as the net pay of an employee.
There are innumerable astounding services for payroll such as the Affinity Payroll Services which will provide you the payroll service you are exactly looking for.
As you know there are two types of payroll services and both have their pros and cons so you need to select the one after deep analysis and consideration so at the end you are satisfied with your decision.