Payroll services are some of the most complicated matters within a business but they can also be an important piece of the business too. However, there are still many who don’t understand how much work is involved when it comes to dealing with payroll taxes. It’s true, payroll taxes come with a heap of responsibility and they can be complicated. So, here are a few things you may need to know about calculating, paying and reporting your payroll taxes.
How to Calculate Taxes
Firstly, to calculate it depends on how the employee is paid, weekly, every two weeks, or monthly. Taxes also depend on the marital status of the employee and what exemptions they may have also. So, let’s say the individual was married and was paid monthly; you would need to look at the inland revenue service tax table to see what amount will be deducted from the pay-packet. The individual can request an additional amount to be withheld; for more information look at payrollserviceaustralia.com.au.
Paying
When the calculations are made, the taxes can then be paid to the government in two ways. For businesses with smaller amounts of employees on the payroll, the payroll taxes can be paid monthly. However, for businesses with a larger payroll, the taxes can be paid semi-weekly. They can be paid electronically which would be a lot simpler since it’s a faster submission option. However, if your payroll service is considerably large then it must be done via electronically. Smaller companies can use a coupon to pay.
When Payroll Tax Reports Should Be Filled
Each quarter, there must be the correct report made to the Inland Revenue Service for payroll taxes. The correct form must be used, form 941, which is the Employer’s Quarterly Federal Tax Return. The form will should the amount of income tax withholding collected from all employees as well as the amount of FICA collected and the total amount owned for FICA also. The forms need to include the amounts for each payroll tax submitted semi-weekly or monthly. If you want to know better, read in payrollserviceaustralia.com.au.
Can A Payroll Service Deal With The Paperwork?
If you are outsourcing the payroll to a trained professional, they can of course, store and keep all data safe. However, while they can assist you filling out the correct forms with the right information, you are the one who must check and ensure the information submitted is correct. Any mistakes, even minor can result in heavy fines. You can allow a payroll service to keep a close watch over payroll matters but you are the one who needs to submit all relevant forms and keep on top of these things too.
Get Things Done Right
Running a business is never easy but when you know how to get things done correctly, it makes things a lot easier. Dealing with payroll taxes is just one issues you will be faced with, there are many more. However, when you know what you’re doing, you can take things in your stride and get them done properly. If you would like to know more, check out payrollserviceaustralia.com.au to find out more.
