Editor's Note: Keep up to date with constantly changing payroll tax laws and trends!

Rena PirsosOverview: HR managers need to understand the complex issues and requirements involved in payroll tax law compliance in order to effectively oversee payroll processing and ultimately avoid costly penalties. This involves managing the following tasks, among many others:

  • Preparing paychecks, which involves calculating employees' gross salary and the amounts to be deducted and withheld from those earnings for federal, state, and local taxes, various health and welfare benefits and for involuntary and voluntary income withholding orders;
  • Determining the proper method(s) for paying employees, e.g., direct deposit, paper checks or payroll debit cards, based on federal and state wage payment laws;
  • Periodic depositing and reporting of withholdings with government agencies; and
  • Recordkeeping.

Author: Rena Pirsos, JD, Legal Editor

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