How Do I Handle Job Costing with Outsourced Payroll?
Outsourcing your payroll service can sometimes cause your business extra expenses. Labor costs are constantly raising, and you don’t want to be over compensating for outsourcing services. Compiling information in your payroll company can really make a difference. Employees can be setup with appropriate wages, pay rates, and correct direct deposits. By using wage items to correct accounts, the gross pay can easily be allocated without any problems. Set up direct deposit for each employee and no checks will have to be printed. Once everyone is set up correctly, all you will have to do is enter a time for the pay to go through.
How to Setup
You may not know how to change any of the settings, so to help you understand here is a guide on how to do payroll on a computer.
Payroll Clearing Account
The first step you will have to do is to go to Company and enter a Chart of Accounts and set up a “payroll clearing” account. You can use any account number, however, you will need to make sure that the category is set to “cash”.
To setup the system, go to Company, then System Setup, and then System Accounts. Simply enter the account number and create the Payroll Checking Account Field.
If you’d like to edit your Employee wages you’ll have to go to Employee, then Wage Items, and then Add new. Edit the information to any wage item you’d like, such as; regular pay, overtime, salary, holiday, vacation, etc. If you happen to be managing multiple COGS labor accounts, you’ll have to separate wage items for each account. You need to input both the name, type, and choose either; hourly rate, annual salary, flat rate, commission, or bonus.
Go to the Employee tab and “enter employees”. Double click on the employee and edit their profile. You will be able to edit the pay period, wage item, rate, and revert back to default settings. Through payroll outsourcing, you’ll have people who can edit all employee information. Through pay period, they will choose weekly, bi-weekly, semi-monthly, monthly, or yearly payment periods. Wage items, which are all current items that pertain to an employee. The Rate, which will be the employees pay rate for the item. And lastly, set everything back to default settings.
Direct Deposit Tab
The direct deposit tab will have the following options; name, activity, active, bank account type, routing number, allocate, and amount.
You’ll have to post time for when the dispatches will occur. To do this go to Dispatch, post time to payroll. Enter the hours directly onto the time sheets with the job number and job class. Lastly, go to employees, process payroll checks, and select generate checks. The following information will list the amount of gross pay, and you will be able to complete the transaction.
As you can see, the whole process can become confusing if you’re trying to do the payroll by yourself. It’s not recommended that you take on the responsibility to do payroll for your business, as you will be held accountable for any errors or mistakes. Hire a professional by going to payrollserviceaustralia.com.au, and they will connect you to online payroll services.