2. Offers Professional Advisory Services in:
Business strategy
Capital formation
Transitional executive leadership
Organization development
Specializes in high technology enterprises
Manages Serra Capital I, LP – Investment
Fund with 24 companies in portfolio
WHO IS SERRA VENTURES?
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3. I. Payroll Basics
II. Calculations
III. Complicating Factors
IV. Payments
V. Reporting
VI. Penalties and Interest
VII. Solutions
VIII.In-House Payroll Process
IX. Popular Software Solutions
X. Outside Payroll Service
XI. Popular Outside Payroll Services
XII. CPA/Accounting Firms
AGENDA
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4. Gross Pay
Various amounts withheld to get to net pay
Other payments – Employer paid
PAYROLL - BASICS
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5. CALCULATIONS
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Weekly Totals Basis for Calculation
Hours 38
Rate 22.50$
Gross Pay 855.00$
Less: "Pre-tax" withholdings
Health Insurance 40.00 Depends on Plan
401K Retirement 42.75 Employee election
Net of Pre-tax withholdings 772.25
Less:
Federal Income Tax Withheld 154.45 Based on Table
Social Security Tax 47.88 6.20%
Medicare Tax 11.20 1.45%
Illinois Income Tax Withheld 38.61 5%
Total Withheld 252.14
Net Pay 602.86$
Employer Liabilities:
Social Security Tax 47.88 6.20%
Medicare Tax 11.20 1.45%
Illinois Unemployment 34.20 experience rated
Federal Unemployement 6.84 0.80%
Employer portion of Health 100.00 Depends on Plan
Employer match of 401K 42.75 Depends on Plan
Total Employer Liabilities 242.87$
6. Gross Pay
Less
Federal Income Tax Withheld
Social Security
Medicare
State Income Tax Withheld
Employee payments for benefits
1. Health Insurance
2. 401k/retirement
CALCULATIONS
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7. Employer matching and other costs
Social Security
Medicare
State Unemployment
Federal Unemployment
CALCULATIONS, CONTINUED
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9. Federal
Illinois Department of Revenue
Illinois Department of Employment Security
Benefits
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PAYMENTS
10. Federal – 940/941
Illinois – IL940, IDES
Other states
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REPORTING
11. Late payment
Late filing/failure to file
Personal liability of officers and directors
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PENALTIES AND INTEREST
12. 6/19/2013 12
“If you are using your payroll taxes due as
working capital, you are probably out of
business and you don’t know it yet.”
Late payment of your payroll tax liabilities will be some of the most
expensive money you can use.
14. Software + in-house expertise
Offers flexibility, privacy, may be cost
effective
Part of your existing accounting package
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IN-HOUSE PAYROLL PROCESS
15. Quickbooks – various versions from $100 to
$600
Peachtree – around $250 to $250 per year
AccountEdge – about $300
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POPULAR SOFTWARE
SOLUTIONS
16. Mostly limited to data input
Not much, if any expertise needed
Can be cost effective vs. in-house
Can handle complications such as multi- state
effectively
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OUTSIDE PAYROLL SERVICE
17. Intuit Online Payroll
ONPAY
Paychex
SurePayroll
ProPayroll
ADP
Bank of America
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POPULAR OUTSIDE
PAYROLL SERVICES
18. Similar to process of Outside Payroll Service
Little knowledge of payroll needed
Can be cost effective depending on complexity and
services used
May be somewhat more flexible than the outside
services
Often provides best customer service
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CPA/ACCOUNTING FIRMS