![]() ![]() Your general ledger : To record wages and deductions and maintain accurate financial records.Employee time cards or time sheets: To get hours worked for that specific payroll period.Your payroll register: To get all of the payroll data you need.Before you get started, you’ll want to make sure you have the following within reach: ![]() You’re sold on the importance of the payroll reconciliation process, but knowing how to do it is an entirely separate challenge. Keep in mind that payroll expenses are one of the biggest costs that small business owners need to cover, making it crucial that you verify your numbers are correct. This causes major headaches and hassles come tax time-plus the potential for more penalties. Keep accurate payroll records : Failing to reconcile payroll means your books and general ledger can be outdated and incorrect.Avoid fines and penalties: Making mistakes with payroll not only destroys morale, it can also lead to penalties from the IRS.Pay employees correctly: According to LendingClub, 60% of Americans live paycheck to paycheck, making it crucial that you pay your employees correctly and on time.While payroll reconciliation might not be your favorite small business task, it’s important to do regularly so that you can: Annually during tax time when you confirm that your payroll data matches each employee’s Form W-2.Quarterly when you submit Form 941 with your quarterly federal tax return.Every pay period before you cut employee checks-ideally, at least two days before your payday.Payroll reconciliation should happen frequently, including: You're essentially double-checking your math to ensure you pay your employees correctly. Payroll reconciliation compares your payroll register with the amount of money you’re paying your employees to ensure they match. Read through this guide to learn more about payroll reconciliation and how to reconcile payroll in 6 easy steps. Or maybe you messed things up in the opposite direction and underpaid your employee.Įither way, you have a big mess on your hands-and it’s proof that the payroll reconciliation process is an important part of managing payroll. This payroll process might sound groan-worthy, but it helps with everything from preparing for taxes to monitoring your business expenses-not to mention ensuring that you pay your employees correctly.įor example, imagine that your employee’s paycheck was supposed to be $800, but you mistakenly gave them a check for $950 instead. I'm only a post away if you have any other questions.Paying your employees is important, but so is payroll reconciliation. You may find this article about entering historical tax payments helpful too. Now your prior payments are entered, and you can get back to business. ![]() Press Done to save your work and Finish to close the window. After you have completed the steps to add your first payment, you can hit Next Payment and continue the process to add more payments. Selecting this option will cause the prior payment to show up in the bank register.Ĩ.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |