subject: Getting Started with Your Company's General Ledger Accounting Payroll [print this page] Getting Started with Your Company's General Ledger Accounting Payroll
Every company has employees and they all have to be paid. You will need someone to handle your general ledger accounting payroll and other financial matters, so hiring an accountant is definitely necessary. Taking care of payroll is no easy task because of various factors such as deductions, taxes, and payroll issues which all have to be dealt with. If your general ledger accounting payroll is not kept by an accountant, you will put your company at risk of being fined by government agencies.
How do you start a general ledger accounting payroll? The first thing you'll need is an employer identification number or EIN. This number is issued by the IRS. You can get this number by calling the agency and they'll have one issued for you. After securing your EIN, you should get the names and social security numbers of all your employees. The first two entries in your general ledger accounting payroll book are those two sets of numbers your EIN and your employees' social security numbers.
Next, you should be aware of IRS forms and regulations. These will guide you in keeping an orderly general ledger accounting payroll. One important form is the W-4, the Employee's Withholding Allowance Certificate, which should be accomplished by all employees. This form will also let you know the number of dependents that every employee has, which will be a factor on how much tax can be withheld from his pay. You should keep copies of your employees' W-4 form and information on allowable deductions.
Another form to be filled out by all employees is the Immigration and Reform Act of 1986. This will show that the employee has provided the employer with enough identification that permits him to work in the United States. Both the Immigration and Reform Act of 1986 and the W-4 form should be kept by the employer as part of the general ledger accounting payroll. These will also help you determine how much of your worker's wage is taxable. You can locate the employee's wage on the IRS table to see how much is to be withheld as federal income tax. Then, determine additional taxes as shown on his W-4 form. These are entries that should be recorded in your general ledger accounting payroll. As an employer, it is your responsibility and you would do good to abide by local, state, and federal payroll laws.
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