Payroll Processing

At AR Payroll Outsourcing , we offer two main payroll outsourcing services: payroll processing and payroll administration. With payroll processing, we print your checks, ensure that all relevant taxes are paid, and handle funds transfers and banking to make sure that paychecks go out with no interruptions.

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Step 1

Process the payroll ahead of time. Devise a payroll-processing schedule that allows you ample time to process the payroll and to correct detected errors before employees receive their paychecks. For example, perform payroll processing two or three days before the actual pay date.

Step 2

Make changes to the employees payroll record, if applicable. This includes: address changes; payroll deduction changes, such as income tax form changes; and voluntary deduction changes, such as retirement and health benefits. Furthermore, enter new hire information for employees hired in the current pay period.

Step 3

Compute timekeeping data from time cards or time sheets and enter the hours to be paid into the system, such as regular, overtime and vacation hours. If you use a computerized timekeeping system, you can import the time into the payroll software. All you have to do is ensure the time is transported correctly and make the necessary edits.

Step 4

Pay other types of income, such as bonuses, commissions and retroactive pay due to a pay raise. Perform other adjustments, such as additional pay or wage deduction due underpayment or overpayment from a prior pay period. Prorate the salaried employees pay if she terminates but does not work the entire pay period, and enter stop dates in the payroll software to stop future payments. Furthermore, prorate the salaried new employees pay if he/she is hired after the current pay period begins. For instance, if she starts working on the fourth day of the biweekly pay period, pay her for seven working days instead of 10.

Step 5

Print reports that allow you to verify the payroll before you print paychecks and generate the direct deposit file. Make adjustments, if necessary.

Step 6

Print paychecks/pay stubs. Generate the direct deposit file and forward to the bank. Contact the bank and ensure it is appropriately received, and verify the amount received.

Step 7

Print payroll registers showing employees ; gross-to-net wages for the current payroll. File in a confidential storage area. Keep these records for a minimum of three years. Keep timekeeping records and those upon which wage computations are based for a minimum of two years.

Step 8

Print and distribute reports needed by related departments, such as human resources and finance, for benefits administration and reconciliation purposes. If a separate department or company handles payroll taxes, forward the necessary tax records for each pay period to the appropriate individual.