Calculating and Managing Payroll

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Calculating and Managing Payroll
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• As the owner of a small enterprise, youll
  probably know just how strictly regulated the
  legal system is with regards to many aspects of
  running a business, and this can prove especially
  complicated when dealing with the employee
  payroll accounts. There are myriad state and
  federal regulations with regards to pay, and
  ensuring that you comply with each of them can be
  a worry. Below are a few points that should set
  you going on the right path

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• Calculating payroll
• It certainly isnt most small business owners
  idea of fun, but calculating taxes simply cannot
  be ignored, and as an employer, you dont want to
  end up incurring hefty penalties for underpaying
  taxes or making late payments.

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• Federal and State Income Tax Every new employee
  must complete a Form W-4 the information
  provided, like marital status and allowances,
  will determine the amount of federal income taxes
  that need to be withheld from their salaries.
  Further information regarding this can be found
  at the Department of Revenue relevant to your
  state.

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• Social Security and Medicare Employer and
  employee must contribute 6.2 of a 12.4 total
  if earnings are up to 118,500 they are subject
  to social security withholding, amounts over this
  figure are exempt. Employer and employee must
  contribute 1.4 towards Medicare withholding and
  earnings are subject to taxation. Wage payments
  made to employees of more than 200,000 are
  subject to extra Medicare tax withholding of 0.9.

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• Federal and State Unemployment Tax Also known as
  FUTA, the Federal Unemployment Tax Act mandates
  6 withholding, but there may be a credit of up
  to 5.4 available to eligible employers. The
  first 7,000 in employees earnings are
  applicable to FUTA withholding.

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• Managing payroll
• Payroll records must be kept for at least 3 years
  from the date of the last entry that was made
  (some states require records to be kept for
  longer than this, so its wise to check). Basic
  employment and earnings records are included in
  this, along with wage rate tables, shipping and
  billing records and additions or deductions from
  wages paid.

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• Even armed with the above information,
  calculating and managing payroll can still seem
  like an unending and impossible task, especially
  when laws change and can vary from state to
  state. With this in mind, many small business
  owners prefer to hire the services of a
  professional to fulfil their companys payroll
  duties.

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• Hiring a Payroll Service Provider
• Outsourcing payroll can really pay dividend for
  small business owners, as not only are they able
  to focus their time and energies on areas of
  their business that may otherwise have been
  neglected, but they can be confident that their
  payroll will be executed accurately and will
  comply with state legislation. Of course
  professional payroll providers dont come for
  free, but you just might find that they can save
  you money by ensuring that you never incur any
  penalties or break any laws, and peace of mind
  for many, is priceless.

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• Apollo Payroll offers premier small business
  payroll services in Miami and Coral Gables.
  Apollo Payroll is dedicated to delivering expert
  advice, responsive service, and highly accurate
  payroll processing and reporting. Their services
  include comprehensive online payroll services,
  employee background check and employee
  timekeeping services in Miami.