There is a lot of information a business owner has to keep track of, and it is important to know what records you need to keep and how to access them. These include payroll records, employee records, and tax records.
Read this article to learn about payroll records and what the employee should include in the payroll records.
What Are Payroll Records?
Payroll records are documents that record the actions of an employee on a regular basis. They can be used to calculate or verify an employee’s deductions, to record the performance of an employee, to provide a record of earnings for tax purposes, to calculate holiday entitlements, expenses, and payments, and many more purposes.
Payroll records are documents that have anything to do with paying an employee. They include payroll checks, W-2s, and checks written to the employees themselves. In general, payroll records are designed to ensure that all money owed to an employee has been paid.
Although most employees are aware that their employers keep records of how much they are being paid, a lot are probably unaware of the types of records they are being kept. The most obvious are pay stubs, which are issued with each paycheck by employers to show how much an employee is being paid, how much taxes are being withheld when the employee was hired, and when the employee is being paid for overtime.
Payroll records can be related to:
- Payroll taxes
- Withholding forms
- Hours worked
- Benefits and deductions
- Pay rate
- Time off
- Gross wages
When you need to find a specific payroll record, you can often find it quickly if you know where to look. While payroll records are not the most pleasant of subjects, keeping them organized will help you find information when you’re in a pinch.
What Do Employee Payroll Records Include?
Here is the list of documents that employees should incorporate in every employee’s payroll record:
General Information
- Name of the Employee
- Address
- Social Security number
- Occupation
- Birthdate
Time and Attendance Records
- Total working hours
- Timecards
- Time and day when the workweek begins
- Remaining Time Off
- Time off history
Tax Withholding Forms
- State W-4 form
- Form W-4
- Other withholding forms
Payroll records
- Total every day or weekly straight-time earnings
- Pay rate
- Additional wages, such as bonus pay and commissions
- Any overtime earnings
- Employer contributions
- Pay stubs
- Raise documentation
- Benefit and deduction information
- Expense reimbursement information
- Payroll history
- Pay periods for wages paid
Termination/Separation documents
- Final paycheck information
Final Words
Payroll is the process by which employers calculate the amount of money that they owe employees for their employees.
To know about Payroll Records, attend the Compliance Prime webinar.
