Asdasdasd

What is Payroll System?

A payroll system involves everything that has to do with the payment of employees and the filing of employment taxes. This includes keeping track of hours, calculating wages, withholding taxes and other deductions, printing and delivering checks and paying employment taxes to the government.

The payroll system starts when a company hires its first employee. In the United States, every new employee must be reported to the state along with a completed W-4 tax form. The W-4 determines how many allowances the employee qualifies for when calculating the federal income tax that should be withheld from each check. Generally, the more dependents you have, the less income tax you have to pay.

As an employer, the W-4 is the first of many forms that you must keep on file as part of your payroll system. In fact, the W-4 needs to be kept on file up to four years after the employee is fired or quits .You must also keep track of the employee's critical personal information, like the address to which checks are sent, or in the case of direct deposit, the bank information and account number where the money is wired. All of this information is highly sensitive, meaning that a good payroll system should also be very secure.

What is/are the importance of having a Payroll System in a company?

Payroll is a very vital department in any organization. This is a department which will highly be affecting the net income of the organization. One needs to concentrate on the payroll calculation. There are various factors of tax deduction involved in it. One needs to be extra careful while calculating the taxes and ESIS and EPF. You may consider going for applying software for doing the service. There is software available on the internet that can give an end to end solution for your problem related to payroll.

The software, once set with the deductions and calculations, can produce the Payroll in seconds for each employee. The software is to assist you with the...