Managing Payroll
In 2021, PSII expanded to Latin America and incorporated Costa Rica, Colombia, and Mexico. Payroll Solutions International Inc. (PSII) offers Professional Employment Services and complete Human Capital Management. We enable organizations to outsource Payroll Processing, Time & Attendance, Human Resources, Accounting and Professional Services within more than 80 countries. We design solutions specific to your business’ needs and budgetary requirements. In addition, we offer our clients the flexibility of managed, self-serve payroll or payroll software licensing. We provide an intimate service structure that enables us to provide designated, live service support. Whether it is basic Payroll or a complete enterprise configuration, we can accommodate organizations of any size, jurisdiction, and multi-lingual, multi-currency format in a hosted environment. Upon request, we are happy to provide a no-cost analysis and proposal that will suit all your business needs.
Globally it’s essential for employers to manage their payroll, so their employees are paid on time, their pay is correct, and their business complies with all tax and employment regulations. Therefore, when you choose a payroll service provider like PSII, we offer several benefits that include but are not limited to:
Improved automation
- Automate the manual processes to remove the risk of human error, miscalculations, missed payments or other mistakes.
Improved reporting
- Employers can run reports across all aspects of their payroll, such as wages paid, taxes withheld, taxes paid, and more.
Improved Time Saving
- Not managing payroll on their own allows employers to focus more on strategic, growth-oriented objectives while we manage their payroll.
Below we will go over how to manage payroll:
Collect and update employee data
- Data such as Social Security numbers, tax withholding certificates, benefit enrollment deductions and worker classifications are some examples required from each employee.
Calculating gross pay
- When calculating gross pay for non-exempt or hourly workers, employers will need to track the total hours their employees work and multiply it by their hourly rate. When it comes to exempt and salaried workers, divide the annual salary by the number of pay periods.
Calculating net pay
- Calculating Net or take-home pay starts by deducting any pretax contributions to benefits or retirement plans from the employee’s gross salary. Then, you’ll look at withhold federal income tax, Federal Insurance Contribution Act (FICA) taxes. You can also check for any other local or state taxes and withholdings that are required. Lastly, make post-tax deductions, if needed, for some types of benefits, retirement plans and wage garnishments.
Determining employer payroll tax contributions
- Employers are responsible to pay half of the FICA tax total and federal and state unemployment taxes. Depending on the particular state or city, there may be other state and local payroll taxes.
Accurate payroll records
- The federal government mandates businesses to save their payroll records for at least three years. Some states have even longer requirements.
Pay employees
- Businesses generally choose to pay employees by paycheck, direct deposit or pay card, although some states have regulations regarding offering electronic and alternative payments.
Government agencies and benefits providers’ payments
- Taxes, garnishments, benefits that’s been retained from employee wages and contributions to payroll taxes and insurance premiums are required to be sent to the appropriate agencies and insurance carriers on time.
File tax reports
- Businesses must report the taxes they withheld and pay to federal and state governments. This is typically done quarterly or annually, depending on the business’s total tax liability and state regulations.
Things to consider when managing payroll
Before you decide to manage your payroll with a service provider, some employers may want to consider their needs and ask themselves the following:
When processing payroll, what are the most lacking resources?
- Limited time to complete specific tasks and lack of staff are the most common reasons employers require help with payroll.
What are some of the pain points with managing payroll?
- Some employers have trouble with accurate payroll calculations, as others may find struggle with tax compliance and employment law.
Which method is preferred for employees to access their pay and benefits information?
- Nowadays, most employees prefer a self-service feature where they can access their pay stubs, benefits and other personal information on their own.
Beyond payroll, which services could the business benefit from?
- As businesses grow, they’ll require additional features such as time and attendance, benefits administration and HR services.
Is the payroll administrator confident with researching, calculating and filing taxes alone?
- In case they’re not, some full-service payroll providers such as PSII will file taxes on behalf of their clients and help ensure regulatory compliance.
Contact our LatAm Head Office
O: +506 2225 5207
125 metros al Este de la iglesia de Lourdes de Montes de Oca, edificio blanco de 3 pisos a mano derecha, San Pedro, San José, Costa Rica
