When I start with a new payroll client, I like to lay out the expectations of what the client can expect from me and my team, and what I will in turn expect from the client. It’s important to note that enlisting KT to handle your payroll services does not preclude you from all parts of the payroll process.

Effectively managing payroll is essential for any business. It guarantees that employees receive accurate and timely payments, while also ensuring adherence to various legal and regulatory requirements.

Below are some key responsibilities clients and accountants must handle when it comes to payroll services.

Client Responsibilities:

  • Providing Accurate Employee Information: Ensures all employee details, employment statuses, salaries, and tax information are accurate and up to date.
  • Timely Submission of Data: Submits all necessary payroll data within agreed deadlines, including new hires, terminations, and salary changes.
  • Compliance with Legal Requirements: Adheres to applicable laws and regulations, including minimum wage, overtime, and employment standards.
  • Approval of Payroll: Reviews and approves payroll reports to ensure accuracy before processing.
  • Funding Payroll: Ensures sufficient funds are available to cover payroll payments, including taxes and benefits.
  • Multi–Factor Authentication: It is strongly recommended that employees use a multi-factor authentication tool when viewing personal information using a web-based application.

Accountant Responsibilities:

  • Accurate Payroll Processing: Calculates gross and net pay, withholds taxes and other deductions, and processes payroll accurately and on time.
  • Compliance with Tax Laws: Ensures payroll taxes are calculated correctly, and the appropriate amounts are withheld and filed with authorities.
  • Record Keeping: Maintains secure, detailed records of payroll transactions, employee information, and tax filings.
  • Providing Reports: Supplies clients with regular payroll reports detailing transactions, tax withholdings, and other relevant information.
  • Supporting Compliance: Stays updated on tax law changes, advises clients on best practices, and ensures payroll processes adhere to legal requirements.

Shared Responsibilities

  • Communication: Maintain clear and prompt communication between each other regarding payroll changes, issues, and updates to business structure.
  • Confidentiality: Protect the confidentiality of payroll information, ensuring security measures are in place.
  • Problem Resolution: Work together to resolve any payroll discrepancies or issues promptly and effectively.

To Recap

Clients are responsible for providing accurate employee information, submitting data on time, complying with legal requirements, approving payroll, ensuring funds are available, and using multi-factor authentication.

Accountants handle accurate payroll processing, tax compliance, record keeping, reporting, and staying up to date with payroll tax law.

As you can see, it takes a collaborative effort between clients and accountants to effectively manage payroll. This partnership ensures that payroll services are managed efficiently, accurately, and in compliance with all relevant laws and regulations.