Hiring employees is actually not that easy. You need to make the sure set all hiring systems, including their payroll system. As setting up the payroll system for your employee, you need to understand first about its employment taxes. Several taxes such as federal and state payroll tax normally will be withheld from the payroll and submitted to taxing authority. To give you more understanding about the payroll taxes, here we provide you some differentiation of each tax.
Types of Employee’s Income Taxes
- Federal Payroll Tax
For this kind of tax, the company is required to hold this tax from its employees. The tax amount is normally determined based on the W-4 form which is filled out by the employees as you hired them. The W-4 form is also filled out as the employees change the amount of withholding or their status.
- State Payroll Tax
State payroll taxes actually require the company to hold the taxes from its employees. Several taxes commonly use the W-4 form just like in federal taxes to determine the tax amount. Meanwhile, others have other kinds of forms to determine the taxes. It is normally regulated differently based on each country. That is why you need to check how your country regulates this kind of tax.
- FICA Tax (Medicare and Social Security)
Not all country has this FICA taxes. However, in the United States, the company needs to deduct the amount of FICA tax from all employees’ income. Also, they must pay both employee and employer portion of this tax. Commonly, the deduction for social security tax is about 6.2 percent out of the gross income to an annual maximum. Meanwhile, the Medicare is about 1.45 percent without a maximum. All those amounts surely need to be matched by the contributions of the employer.
- Employee Compensation
In this case, the company needs to pay the funds of state-run for the employee who gets injured or being ill due to their works. This tax is regulated by worker’s compensation and it is paid by company contribution to state workers.
Looking up the employee’s payroll taxes, it is actually quite complicated to manage it, especially when you own a big company. However, today there is software which can help you manage the employee payroll, including its taxes. SunFish HR can be a great solution for you who want to improve your company and business quality.
What is SunFish HR?
SunFish HR is actually a great Human Resource Solution which let company getting a lot of benefits by increasing it. There are a lot of functions that provide by SunFish HR, including the Administrative HR function. This will help you manage the payroll, time, loan, organization, career, and reimbursement of your company. SunFish HR provides an advanced Payroll Module which can help you handle your company, even the multi-national one. The technology used by SunFish accommodates all the regulations which related to payroll.
If you think the SunFish payroll module is difficult to be applied, you are wrong. It is actually quite simply to apply. As we know, payroll processing is actually very important for any company or organization. That is why the process sometimes really time-consuming, even it must be repeatedly processed due to some errors. If it happens several times, it can give inaccurate or delayed payroll. Besides, this situation can disturb your employee’s productivity at work. By using SunFish HR, the employee’s payroll will be calculated in detail. Every aspect such as loan, insurances, allowances, reimbursements, and others will be carefully calculated. Other aspects that related to governments fillings such as bank transfers, payroll planning, and taxes also will be automated process.
Benefits of Using Sunfish HR for Payroll Calculation
Using SunFish HR to calculate the payroll and taxes provides several benefits for the company. Just like its vision, SunFish can be a great software solution to improve your company or organization. SunFish with advanced underlying technology provides a greater user experience and improvements. Here are several reasons why SunFish can help you maintain the employee’s payroll and taxes.
- Low Risk
Do not worry about some high risks which caused by this software.You can retrieve the data safely and easily.
Just like we’ve said, SunFish is truly secure from any risk. The data will be stored in a safe data center of Tier 3. It is also protected by Warm Disaster Recovery Center and gets an ISO 9001:200 certificate by Lloyds. Besides, the application security is controlled based on OWASP standards.
- Easy to Use
Unlike other software, Sunfish HR is really easy to use. The wizards make the set up really easy. It also can move or input the existing data from excels very quickly. Sunfish use a standard business rule which provides easily practices and applications.
- More Efficient
When it comes to payroll calculation, it also includes several taxes. However, calculating payroll taxes of employee in traditional ways sometimes lead us to some errors. This kind of errors surely can give disadvantages to the employee due to the inaccurate payroll amount or the delayed payday. By using SunFish HR, you do not need to worry about having those problems. All the employees’ payroll will be calculated correctly, including its taxes, insurance, loan, and others. The traditional way will take a time-consuming process, while by using SunFish the process will be more efficient. Therefore, the task the payroll will be completed on time.
Maintaining the employee payroll including its taxes sometimes can be a hard task. Depending on traditional process surely can take longer time and lead to some errors. Meanwhile, by using SunFish HR, the process can be more efficient and reliable. All the date will be protected in the secured data center with no risk. Also, SunFish HR is truly cost-effective to purchase.