1. Gather the necessary timesheets and hours to pay each employee. Calculate
hourly/salary pay, vacation, personal and sick time, plus benefits
deductions (401k, health, dental, cafeteria plans and garnishments). Process
new hires, terminations and any tax adjustments.
2. Compare what was submitted to you against what you entered before
performing the check run. Once a check run is completed and the payroll is
closed, the only way to correct an error is to void the check and issue
another. This is why double-checking and even triple-checking is so
important in payroll processing.
3. Generate the necessary payroll reports and compare what is printed on
each check against the reports. These reports contain a detailed listing of
what you entered before the check run was completed. This allows you to
catch any mistakes that may have occurred during the payroll processing,
before the employee receives his paycheck.
4. Ensure correct quarterly reports by reconciling the results of each
payroll. Immediately after printing and double-checking the paychecks,
ensure that the appropriate federal and state taxes were deducted and
balances with the necessary reports. At year-end, the employee's gross
wages, benefits deductions and taxes should coincide with each pay period's
report.
5. Close the payroll. Any issues resulting from a specific payroll
run--after it's been closed and after the employee receives her check--is
addressed upon notice. At that time, you can make the necessary adjustments.
Depending on the severity of the error, you can correct the error
immediately or on the next payroll run.