Payroll

Scope

Payroll administrators coordinate a company’s payroll process.

Regulatory citations

• None

Key definitions

• None

Summary of requirements

Some of the computations involved in cutting paychecks include: figuring gross earnings, calculating wages for complying with federal and state tax codes, determining the Social Security and Medicare taxes, figuring withholding for supplemental wages, and calculating and withholding deductions for both voluntary and involuntary payments and contributions. Doing all this generates reams of data.

• Payroll systems. To stay on top of all this information requires an efficient payroll system. This system also aids in the keeping of records required by the federal government. Most organizations use some type of computerized payroll system. These systems range from outsourcing the function by using a payroll service bureau, to doing all the work in house.
• Monitor federal and state laws. Payroll administers must also monitor federal and state laws that affect the payroll function. Tax laws (both federal and state) can also change from year to year. In addition, state taxes vary between states.