Payroll Services

US Payroll & Compliance

The United States is home to approximately 330 million people and the largest economy in the world. With a huge economy the US offers a huge customer base and a highly skilled workforce. With such a huge workforce payroll processing is a huge market due to the complexities involved and the laws varying in each of the 50 states.

Before setting up your organisation it is important to understand the payroll regulatory requirements of each state as the rules vary significantly and the penalties for non-compliance are severe. The Fair Labor Standards Act (FLSA) provides guidelines; different states may frame their own laws. Employers need to maintain data such as:

• Employee's full name and social security number
• Address, including zip code
• Hours worked each day and total hours each workweek
• Regular hourly pay rate and total wages paid each pay period
• All additions to or deductions from wages
• Date of payment and the pay period covered

Additional Employer Requirements

• Filing Form 941 (quarterly reconciliation) at the end of every quarter
• Filing Form W-3 with the Social Security Administration (SSA) each year
• Providing all employees with Form W-2 by January 31 of every year

The major payroll software used includes Gusto Payroll, Paychex, ADP Payroll, QuickBooks Payroll, etc.

Payroll Entries

Payroll is one of the most regular compliance requirements employers need to fulfil. Recording payroll in a timely and proper manner helps in issuance of W-2 before the deadline. The recording of payroll and payment of taxes is dependent on the reports generated from the software on a pay period basis. Payroll journal entries are used to record the compensation paid to employees.