Payroll Career Guide and Counseling

Question: What is the difference between payroll software and a payroll service? Im a business studies student and wondered whether the only difference is that a payroll service is internet-based? Or is there more to it? Is this the case for all payroll services? Any advantages and disadvantages of each type of payroll managing method would be very helpful. Thank you.

Answer: payroll service does payroll for u, if u buy software, u have to do payroll dat aentry & tax returns etc. See diff links at top of the sites

Question: What is the difference between an income tax and a payroll tax? What is the difference between an income tax and a payroll tax? A. Income taxes reduce the demand for harmful goods while payroll taxes don't affect this demand. B. Income taxes are collected based on income while payroll taxes are collected based on wealth. C. Income taxes are used for a wide variety of government activities while payroll taxes pay for specific programs. D. Income taxes increase the purchasing power of the government while payroll taxes increase the purchasing power of workers.

Answer: A-False B-False C-True D-False (though true in some sense) "C" is right one.

Question: Do you pay payroll taxes to partners in a California LLC? There are four partners who work and all own a share of our California LLC. Do we pay taxes to the EDD for Payroll, or do we pay Self-Employment taxes at the end of the year, or do we do both? Note: The four partners are the only employees of the LLC.

Answer: Members (what you refer to as "Partners") of LLC's are not considered employees, and thus do not pay payroll tax. Each member will be issued a K-1 at the end of the year w/ their share of the LLC's income/loss which each member will report on their own individual income tax return. The one thing to beware of is that LLC's in CA have a tax that is calculated on gross receipts and not net income. If your gross receipts are greater than $5M, you will be taxed $11,700, regardless of whether you actually have any net income. So if you are in that situation, there may be other entity structures that would provide more tax efficiency.

Question: Would working at a payroll company help me find a job in finance in the future? I do a little accounting and everything else for this payroll company. Will I have a better chance at landing a job compared to working as a teller? Or is being a teller better? I'm planning on applying for a finance position in May after I receive my degree in finance. Thanks!

Answer: I couldn't hurt. Payroll is combined at quite a few companies with the financial/accounting department. Payroll is a little different than some accounting because you deal with the here and now, and the past, but not so much with forecasting. It would give you a good rounded background and every employer need to pay their people, so you can take it anywhere you go. Never hurts to learn more things.

Question: Who is a great payroll service company located i nthe US that is not expensive? I heard that ADP is very expensive so I am looking for another payroll service that is affordable. Not including myself there will be 9 people I will hire for my business.

Answer: Hi - I work at Intuit on the payroll team. If you're looking for an online offering, we have a special price of 3 months free, then just $9.95/mo afterwards (and you don't need to own QuickBooks). http://payroll.intuit.com/payroll_services/online_payroll.jsp If you want us to handle payroll taxes and filings for you, we have an offering called QuickBooks Assisted Payroll which is 35-50% less than ADP or Paychex. Here's the link if you're interested: http://payroll.intuit.com/payroll_services/assisted_payroll.jsp Hope this helps!

Question: How do I process payroll when people are paid a retainer to be reimbursed when they earn a commission? Help? I am bookkeeping for a travel agent (my first one) and am wondering on the best way to process payroll in MYOB when the sales staff are paid a wage (retainer I suppose) each week which is to be paid back when they sell a house and earn their commission. Would you do an advance? There must be a better way. Any advice much appreciated.

Answer: Helen, I wonder why a travel agent is selling houses this seems very strange. If you are in fact working in a real estate office, has the file already been set up? Can you track to see what was done in the past? Real Estate payroll is extremely tricky and I have seen it go badly wrong. I suggest you get someone who knows what they are doing to come in and spend 90 minutes, one one one with you training you in it. Good Luck

Question: What exactly is a "payroll debit card", and how does it work? I was just hired by the county for a clerical position and since I dont have my own bank account (im 16), they gave me option Bm which is a payroll debit card which is supposed to arrive in the mail in 2 weeks. What will i be able to do with this new card? How does it work? Thanks! :)

Answer: Your paycheck will be put onto the card. The card can then be used at stores or online to purchase stuff. They will also send you a PIN seperately so that you can make cash withdrawals at ATMs.

Question: Would working at a payroll company be good enough job experience when applying to become a financial analyst? I want to work at this payroll company for at least a year first, but I'm not sure if it'll be good enough experience to apply for a financial analyst position. I'll be getting my Finance degree soon and it's been 8 months since I've been working there. Any advice would be very appreciated.

Answer: finish the finance degree forst and then try. You will probably need some experience first doing analysing work.

Question: What is the best payroll software program to use for a small company? Hi Friends, I would like something that would take care of payroll, taxes, etc. for a company with no more than 15 employees max. Thanks!

Answer: Hi Jack, You should try 'Attend HRM'. It has an attendance management system integrated with payroll software. Best solution for SMEs. It's available for free download from the link below: http://www.lenvica.in/content.php?page_name=products

Question: Taxable earnings: How is that reported on the payroll? What are the numbers that are shown on the payroll regi The payroll register shows the earnings of employees for the time period. How will the employer record the different amounts and what is his responsibility in employers taxes? If the pay period is number 20, how do I record the taxable earnings for FUTA & SUTA? I really do not understand the 5.4% that is required to be distracted. What is the amount for SUTA in this case? What employees are required to pay all this? Please, heeeeeeeeeeeelllppp!!!!!!!!!

Answer: You don't record the taxable earning anywhere. The taxable earnings are used to compute your FUTA and or SUTA liabilities. So from your question, it sounds like you trying to journalize the entry. You only would journalize the actual tax due. The FUTA and SUTA earnings are needed when the tax returns are filed. SUTA returns are quarterly and FUTA returns are annual. There is nothing to subtract from anything. Your payroll register shoul give you the exaxt amountof tax to create the journal entry. Thisis assuming your SUTA rate is in the payrollsystem, if it is not then multiple your rate by the taxable earnings to arrive at the tax due.

Question: How do I set up payroll for a small business and keep it affordable? I have a small business and I am ready to hire one or two employees. I want to know the best way to establish and manage payroll on a tight budget. I am kind of a do it yourselfer but I want to make sure it's done right and with not a lot of hassel. Any advice?

Answer: Use quickbooks...there is a shorter version, and a larger one...so check out which would work best...but it is easy to understand.

Question: How much can I increase my payroll deductions? I have made an offer on a condo for my very first home purchase. I have always heard people say that you can increase your payroll deductions to get more in your paycheck because of the interest write-off. But how do I determine how much to raise it to without running the risk of having to pay income tax at the end of the year?

Answer: You need to figure how much tax you may owe at the end of the year. Then, if you're paid weekly for example, take the total tax and divide it by 52 to see how much should be withheld every week. That should give you a ball park figure as to how much tax you'll owe. It's better to have more withholding taken out than to owe tax at the end of the year.

Question: How do I get an Unclaimed payroll check From Walmart in Indiana? I have been trying to call the payroll hotline and they can never recieve my calls or I have been put on hold for over 45 min and was disconnected! Is there a way I can do it from the computer?

Answer: Try contacting the store that you worked at. They may be the ones who have to request the paycheck. If not that try contacting the corporation through their website or try www.walmartfacts.com

Question: What are all the Income tax deductions in a Payroll from Philadelphia PA? My husband is getting paid $12/hr this payroll gross was $918. The deductions are $278.40 (child support) and all the other taxes deductions. I see everything in order but they started also holding Philadelphia local Income tax for $88.04. I did know about Federal Income tax and PA income tax but this Philadelphia taxes I never herd of them and the withold amount is almost 3 times higher than the PA one. So he is only receiving $ $344.28 this payroll. Is this right?

Answer: Many states allow cities to have local income taxes. Philadelphia does have such a tax. The rate is 4.301% of Gross Wages. The PA state income tax rate is 3.07%. There should be Philadelphia tax withheld, but 3 times the PA tax sounds high. You overall deductions, not counting child support, are about the same % of gross as mine.

Question: How do you do your own payroll? I need to know how to go about acquiring the right info so I can start taking taxes out of my paycheck. We were with a payroll company buit canceled the service and now it is my job to figure it out.

Answer: Quickbooks by Intuit is the program you want. You need to have the state data and federal rates updated each year, but the calculation from then on are easy. See their site below:

Question: Where can i find information on massachusetts payroll information? Im a small business owner and struggling with the hassle of paying and filing payroll taxes for one part time employee. Where can i get information on my options of how to make the process easier? Possibly W4 information Actually i think it 1099 forms i need info on

Answer: 1099 forms are to report monies paid to independent contractors. An employee gets payroll taxes withheld and is not an independent contractor. See the IRS website for all kinds of great info below, as well as witholding Massachussetts income tax: