Distributing compensation may seem like a pretty straightforward task – simply multiply the pay rate by the hours worked and you’re all set, right? Well, while this formula may work for independent contractors and those paid an hourly wage, there are often several other points to consider. Say you are dealing with the CEO of a mid-sized company, for example. If this is the case, you will need to consider incentive bonuses, as well as any distributions made to investment accounts. Additionally, you will have to consider any business expenses that this CEO initially paid out-of-pocket, and include any necessary reimbursements. As you can see, the bigger a company gets, the more complicated the payroll process becomes. The payroll process will get even more complex with the addition of paid vacation, as well as retirement account contributions and distributions to investment accounts (such as 401k plans).
If your company is located in or near Lake Worth, we are willing and able to meet (and exceed) all of your payroll accounting needs. Our team of dedicated and experienced accounting professionals is standing by to answer any and all questions you may have. For more information on payroll accounting, or accounting in general, please feel free to give us a call or stop by our Lake Worth office today.