When you’re new to payroll, the lingo can sometimes leave you confused. It’s important to invest some time into learning the most commonly used payroll terminology, so you don’t make any weird (and potentially costly) mistakes such as assuming we know what minimum wage is exactly and how it’s defined. The top 21 payroll terms…
How to Do Payroll in Excel in 7 Steps [+ Free Template]
Doing payroll in Excel is best for businesses that need to pay 10 or fewer employees and operate in states without complex labor and tax laws. To save time, use our payroll Excel template with pre-filled information like tax rates and overtime formulas. Automation helps streamline payroll, whether you use a template or payroll provider….
How to Choose a Payroll Service for Your Business
There are a lot of options available when choosing a payroll service. You may be researching everything from payroll software to bookkeepers. When selecting a provider, consider the size of your business and the complexity of payroll operations. In our list, we explain the different types of payroll services available, so you can make the…
Post-Tax vs Pre-Tax Deductions: What Employers Should Know
The primary difference between post- and pre-tax deductions is the time at which employees are required to pay taxes on them. Pre-tax deductions, like some retirement contributions and insurance premiums, are amounts you subtract from the employee’s earnings before computing taxes, driving the tax bill down for both you and your employees. Post-tax deductions are…
Payroll Forms Employers Need
Regardless of how many employees you have, payroll forms are a necessity. Most employers need the regulated payroll tax forms required to maintain good standing with the IRS, like W-4 forms for new hires. Other, less structured forms can also be useful in helping to better organize your company’s processes—for instance, direct deposit authorizations. Payroll…
How to Conduct a Payroll Audit [+ Free Payroll Audit Checklist]
Conducting a payroll audit helps ensure your payroll process complies with labor and tax laws. Further, regular payroll audits reduce occurrences of fraud, embezzlement, and wage theft. You can strengthen your financial controls and address potential issues using our free customizable payroll audit checklist that covers how to conduct a payroll audit step-by-step. , which…
15 Tips For Managing Payroll Effectively
Payroll management is a system for processing employee paychecks (salaries, bonuses, deductions), complying with labor laws, and maintaining adequate documentation. It’s important that businesses learn tips for managing payroll effectively, because it directly affects their financial health. In 2017, the IRS assessed almost $7 billion in civil penalties from non-compliance of employment tax requirements. Here…
Free Payroll Templates: Tips & What to Include
Payroll templates are pre-designed spreadsheets and forms that help organize, calculate, and track payroll data. They’re best for business owners preparing to hire their first employees or who want to better manage payroll. You can use these templates instead of, or in conjunction with, payroll software to eliminate extra costs for add-ons like time-tracking. If…
Tipped Minimum Wage by State
Tipped minimum wage is the lowest amount that employers, like restaurants and resorts, can pay tipped employees. Currently, it’s $2.13 per hour (federal law), but each state has its own regulations—for example, paying a lower minimum wage is illegal in California. It can save money, but participating employers are subject to oversight. If you need…
The Ultimate Guide: What Is a Shift Differential?
A shift differential, or shift pay, is a premium employers pay to employees who work outside of normal business hours. For example, if a restaurant is open past midnight, employees working the night shift may receive an extra $2 an hour. Legally, employers must include this premium in any overtime calculations, or they’ll face penalties….
What a Payroll Card Is, Costs & Providers
A payroll card (pay card) is a prepaid debit card employers used to pay employees who don’t have bank accounts. Although regulated by state law, they’re similar to direct deposits in that money is sent electronically and setup is sometimes free. Pay cards are available from dedicated providers (FlexWage or VISA), banks, or payroll companies….
W9 vs 1099: IRS Forms, Differences, and When to Use Them
A W9 is an Internal Revenue Service (IRS) form that’s used to gather information about a contractor so that their earnings can be reported at year-end. Conversely, a 1099 (1099-MISC) is the document that’s issued at year-end to show how much income the contractor earned. Thanks to QuickBooks Payroll for sponsoring this post. As a…