How to Perform Payroll

How to Perform Payroll

At first look, it seems very complicated. Once you see how to do it, you ll be asking yourself why you didn t learn this before now.

Payroll has only 9 items to handle.

We ll start with Employee Withholdings

Gross Income (Employee total wages) (Paid Quarterly)

SSAI (Social Security Administration Insurance) (Paid Quarterly)

Medicare (Medical Insurance Fund) (Paid Quarterly)

Federal Income Tax (Paid Quarterly)

State Income Tax - (Paid Quarterly)

Net Income Paid to the Employee after all the above deductions (Employee s Paycheck)

Next, your company s share of withholding

SSAI (Social Security Administration Insurance) (Paid Quarterly)

Medicare (Medical Insurance Fund) (Paid Quarterly)

FUI Federal Unemployment Insurance

SUI State Unemployment Insurance

Formula for Employee Withholding

Gross Income x SSAI% = SSAI Withholding

Gross Income x Medicare% = Medicare Withholding

Gross Income - Federal Income Tax Table = Federal Income Tax Withholding

Gross Income - State Income Tax Table = State Income Tax Withholding

Net Income = Gross Income - SSAI Withholding - Medicare Withholding - Federal Income Tax Withholding - State Income Tax Withholding