Managing payroll is defined as the administration of the financial record of:
- Employees’ Salaries
- Net pay
It also consists of maintaining all payroll records pertaining to payroll taxes (income tax withholding, Social Security and federal unemployment tax).
All employers, regardless of the number of employees, must adhere to federal and state laws regulating payroll administration. One of the fundamentals of managing payroll is establishing a payroll period. It provides consistency for employees and organizes the process. A consistent and accurate payroll management system minimizes state and federal taxes.
For more on managing payroll, check out this article.