Need Help Calculating Your Payroll?

July 9, 2019 by OSYB Staff

Before you start considering calculating your payroll, you should understand all the components of payroll. Intuit Quickbooks does a good job of it and here is some of what they have to share:

Payroll covers two financial obligations that you have as an employer that include the sum total of all expenditures paid to your employees and the deduction of the accurate amount of an employee’s wages to satisfy their annual income tax.

An employee’s total expenditures include:

1. Remuneration: This is the agreed-upon wage between employer and employee.
2. Benefits: This will be the portion of any benefits paid by the employer.
3. Social Security, Medicare, and unemployment taxes: Taxes can be federal, state or local, depending on the jurisdiction. For payroll, this likely only includes an employee’s Social Security and Medicare contributions.

Stay tuned for the next blog that explains expenditures.

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For details: DIY accounting: how to calculate payroll

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