Definitions: Payroll Management

1. What is the concept of payroll management?

2. All records pertaining to payroll taxes

2.1. Income Tax Withholding Records

• Name, address, and Social Security number of each employee
• Amount and date of each payment for compensation
• Amount of wages subject to withholding in each payment
• Amount of withholding tax collected from each payment
• Reason that the taxable amount is less than the total payment
• Statements relating to employees' nonresident alien status
• Market value and date of noncash compensation
• Information about payments made under sick-pay plans
• Withholding exemption certificates
• Agreements regarding the voluntary withholding of extra cash
• Dates and payments to employees for non-business services
• Statements of tips received by employees
• Requests for different computation of withholding taxes

2.2. Social Security Tax Records

• Amount of each payment subject to FICA tax
• Amount and date of FICA tax collected from each payment
• Explanation for any difference

3. Build a salary scale and payroll system

3.1 What is payroll management services and how to build a payroll system in an enterprise?

3.2 Job analysis

• Conduct investment statistics on jobs according to each title currently used in the enterprise.
• Collect detailed information about each specific job position to determine the main tasks, sub-tasks, relationships of each job title and determine professional requirements regarding educational qualifications, work experience, knowledge, skills, physical condition, and necessary working conditions for each job.

3.3 Evaluate the value of work

3.4 Job assignment

• Group individual jobs into job groups.
• Set up job quotas and quota standards.
• Specify a job class for each job group.

3.5 Set up salary scale and salary table for each job level

Setting up the salary scale and payroll based on the information collected and the influencing factors considered, setting up salary management is carried out in the following order:

• Determine salary levels in the enterprise by obtaining information from the job classification stage.
• Determine the number of salary levels in each rank based on calculating advantage points based on work results and considering the level of complexity required for the salary scale and salary table.
• Regulation of salary levels by rank and grade.

These are the basic steps for salary management according to payroll management company guidance. However, in reality, businesses will sometimes develop many other payroll administration services methods depending on the characteristics of that business.