What Is Payroll Accounting?
What Is Payroll Accounting?
If you are running a business in Hong Kong, you need an effective accounting system. One of the hallmarks of a business accounting solution is payroll account.
With payroll accounting, you can ensure that every member of your team is paid properly and on time. Not only can you ensure that your team members are being paid the amount they are due each pay period, but a payroll accounting system or team will also make sure that your employee payments include the proper withholdings and deductions.
Read on to learn more about payroll accounting, and how the team of professionals at Fastlane can help your company boost its effectiveness and efficiency with high-level payroll accounting.
What You Will Learn:
- Why Should My Company Use Payroll Accounting?
- What Are The Benefits Of Separating A Bank Account For Payroll?
- What Do You Need To Set Up Employee Payroll Accounts?
- Take Care Of All Your Payroll Accounting Needs With Fastlane
1. Why Should My Company Use Payroll Account?
When paying employees, it is essential that you have your information correct and your processes in order.
With a robust payroll accounting system, you can handle all of your payroll needs in one location. This will likely include the payment of employees on a fixed schedule, as well as automation that will ensure the proper amounts are paid depending on the wage hours.
Payroll accounting is also essential for helping withhold amounts for various employee benefits, as well as ensuring that the right amount of taxes are withheld for each team member.
2. What Are The Benefits Of Separating A Bank Account For Payroll?
To help ensure that all data is kept clean and clear, most companies will keep their employee payroll operating through a separate bank account.
This will allow for companies to ensure that the records for payroll accounts are located in one convenient location, and will help avoid potential overlaps of account payments or overdrafting on an account due to unexpected expenses.
3. What Do You Need To Set Up Employee Payroll Account?
When it comes to setting up payroll accounts for your staff and employees, there are several steps you must take.
The first set of documentation you will need to set up an employee’s payroll account is their employee information. This can include their personal information as well as a set of verifiable personal identification.
Most companies require their employees to fill out paperwork to give the company information regarding their person, as well as the amount of money they wish to have withheld for any tax or benefit considerations. It is advised that a company go over employee withholdings every year to ensure the right amount is being withheld.
The next set of data you will need to set up an employee payroll account is the particular wage information for that employee. This will include the employee wage identification. Is the employee a full-time salaried employee, or are they part-time? Do they receive contractor or freelance compensation?
Knowing the employee’s wages and how they are identified in the payroll system will help ensure that they are paid properly. You can also make sure you are providing them any necessary statutory entitlements that amendments such as the 713 Ordinance require.
4. Take Care Of All Your Payroll Accounting Needs With FastLane
Are you looking for a payroll accounting solution that is tailored to your business’s unique needs? At Fastlane, our team of accounting professionals are experienced in helping HK businesses of all sizes ensure that their employees are set up with a robust payroll solution.
FastlaneHR can help you develop a payroll solution that is designed to help your company automate payments and process the proper taxes and withholdings. With an all-in-one solution that is built to your company’s unique needs, you can trust that your payroll is set up for all employees.