MOLLY MAID General Operations Manual Copyright 2015, Molly Maid, Inc. Introduction Payroll administration includes many different activities, most of which are government- mandated. Federal regulations apply uniformly throughout the country, but every state and territory may have its own taxes and filing requirements. Check with your accountant for the regulations in your state and territory. In general, an employer must: Collect withholding and tax status information from new employees. Establish an employee earnings record. Compute gross wages for employees. Withhold applicable taxes. Compute other deductions. Record payroll information. Issue paychecks. Compute applicable employer taxes. Deposit Taxes Payable. File federal, state, and local reports (normally monthly or quarterly). Deposit Federal Unemployment Taxes quarterly. Deposit State Unemployment Taxes (normally monthly or quarterly). File Annual Returns and issue W-2 forms at year-end. The MOLLY MAID recommended accounting system, QuickBooks, is designed to handle these activities in a simple and straightforward manner. QuickBooks does offer payroll services. There are many other payroll processing companies (Paychex, ADP) that can manage the weekly payroll process. Refer to the vendor list for a list of companies. The MOLLY MAID recommended accounting software, QuickBooks, can simplify your payroll administration and allow you to handle it yourself (saving the expense of a service bureau). It will quickly compute withholding and employer taxes, print paychecks, and print reports to help you make the appropriate tax deposits and file the appropriate reports. These payroll capabilities will automatically classify the expenses properly and simplify your financial reporting. WARNING: Computerized payroll packages must be set up properly! Even though you are using a software program, you should thoroughly understand how to use it properly and what computations and classific tions it is doing internall . Failure to do so can easily result in mistakes in tax deposits or report filings, which can carry substantial penalties. Software programs can save a great deal of time and money, but it is crucial that you understand the payroll process, the applicable government regulations, and the computer program. Page 45 Proprietary and Confidential Information
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