Income Tax Returns-1 Form Filing

Payroll processing

• The process begins only when the employee’s generated sheet fulfils all the requirements of the employment status and Department of Labor (DOL) verification. This is followed to do a proper payment settling. This process begins from the first employee. The pay period is to be calculated by including the employees hours and pay rate. The deductions include state and federal taxes, unemployment, and insurance.

How is it processed?

• The manual method might be time consuming and error prone. As the calculation of extra working time, overtime are to be carried forward manually. There are free online software available to calculate the payroll. The processing comprises of three steps.

Company Registration Procedural steps

• Step 1: Collect timesheet
• Step 2: Calculate Income & Deductions
• Step 3: Pay Employees

Collect timesheet

• The first and foremost step is to be clear with the time worked for in a uniform pay sheet format. Many times different employers use different methods such as
• In a manual process, one person will have to enter the time on each employee time card. This might hardly consume 15 to 20 minutes of your busy scheduling. It is better to use a electronical timecard.

Calculate Income & Deductions

• Upload the data electronically or feed the data to the payroll system or software. The software is of two different types where the daily timecard calculation can be done by updating the next day data. Or calculate all in one shot for each and every employee.

Count the hours worked:

• Calculating and verifying the worked hours with the actual contract hours.

Determine the overtime:

• The employee’s timesheet has to be verified and overtime calculations are to be made. The over time is paid as half the full day amount.

Calculate the gross pay:

• Calculate by multiplying pay rate time the employer has worked for. Just ensuring the employee’s straight work time and overtime worked along with overtime hours. Regular pay+ overtime pay= gross pay The correct verification is to be ensured.

Tax deductions

• Tax deductions such as Benefits, taxes and insurances are to be reduced from the gross pay amount.

Net Pay Calculation

• The net pay is calculated by gross pay amount and subtracting the deductions, you reach in Net Pay.

Pay Employees

• Cash, Payroll Check,
  Direct Deposit Or
  Debit Card
  First step is to calculate the timecards and verify for correct entry of each employee. Second step is to input the number of hours worked and deductions to be determined from the gross pay. Third step follows as make sure there’s enough money in the payroll account. Fourth step is to print and hand out the paychecks or employees receive direct deposit.