The Payroll Process

A Basic Guide to U.S. Payroll Procedures and Requirements, 2018

The Payroll Process, A Basic Guide to U.S. Payroll Procedures and Requirements, 2018 is designed as a primary reference to meet multiple needs related to payroll.

For the employer

1. The process: The book provides a single integrated view of all steps in the payroll process as well as explanation of the steps in the process. A guide to the entire process is particularly useful for small businesses or businesses beginning to hire employees. A dedicated new business checklist is also provided in an appendix.

2. Compliance: Failure to comply with requirements of the two key areas of fair employment laws and employment tax calculations creates millions of dollars of fines and penalties annually for unsuspecting businesses, and are a particular hardship for smaller businesses. The book acts as an early-warning primary reference that explains fair employment laws, and includes a listing of key fair employment laws, their main requirements, and illustrations of the variety of calculations that can apply to minimum wage and overtime. Secondly, the book explains and illustrates federal tax calculations to help to ensure compliance and prevent payroll tax penalties, as well as identifying procedures to abate or reduce penalties. Included are compliance requirements for non-U.S. workers.

3. Accounting methods: Every payroll requires proper accounting methods. The book illustrates these methods in a step-by-step manner, and includes internal control procedures. The uses and limitations of payroll processing services are also discussed.

4. A reference to references: In many cases the book will be a sufficient reference to complete a payroll; however, situations may arise in which greater information is needed. Within the context of each discussion, the book contains targeted references, many available online, for further relevant guidance.

For the employee

1. Fair employment laws: The listing and explanation of fair employment laws is a guide for employees to evaluate the fairness of the their employment history and circumstances. The book also offers guidance for obtaining further information and contacting employment authorities.

2. Paycheck calculations: The American Payroll Association recently reported that more than 50% of employees have complained of paycheck problems. This book provides employees calculation details and references to evaluate their gross pay and payroll tax withholding.

3. Employee benefits: The book reviews both employer and governmental employee benefits.