The steps to processing payroll include computing work time; revising payee information, including added income amounts; printing verification reporting; distributing payments and stubs; and printing final reports for record-keeping and departments, according to the Houston Chronicle. Each of these steps should be performed meticulously and in a timely manner for best results.Continue Reading
Processing payroll is a time-consuming process, and to avoid errors that cause disgruntled employees or shoddy accounting that can lead a company afoul of tax authorities, it is important to set up a system where it can be done in a timely manner, according to the Houston Chronicle. No step should be rushed, because a single error can be costly and could take valuable time to correct if not caught during the process.
Details such as changes in an employee's pay, or personal and tax deduction information need to be incorporated before computing work time, as they affect the numbers, states the Houston Chronicle. After computing work time income, other types of income, such as vacation pay and bonuses, should be processed. Before printing checks and stubs and triggering direct deposit payments, an initial payroll report should be printed to check for errors. After distributing payments, as many copies of the report should be printed again as necessary to distribute to departments to store for tax and other purposes. Registers of work time should be saved accordingly. Make sure any electronic files pertaining to payroll and work time are properly backed up.Learn more about Personal Banking