The system for compensating employees and paying employment taxes is managed a payroll coordinator. This can include managing reimbursements, calculating benefits owed, and processing bonuses and other one-time checks, in addition to processing time worked for regular pay. The actual scope of a coordinator’s job is determined the company’s organizational structure. Payroll coordinators are typically assigned to large companies with diverse accounting departments to focus solely on processing payroll. Small businesses without dedicated accounting or human resources staff will likely expect a coordinator to handle all aspects of payroll and benefits administration.
Payroll processing is one of the most difficult aspects of business operations. The task is heavily regulated from a variety of angles. Employers are required law to pay employees on a regular basis, in an agreed-upon amount, and to compensate employees appropriately for overtime worked. Companies must also pay appropriate employment taxes to local and regional governments, as required law. Furthermore, in the event that business expenses are audited the government, tax authorities require companies to keep proof of time worked employees.
Payroll management is a critical business function because of the potential legal ramifications. A payroll coordinator is a professional who is hired specifically to oversee the process of paying employees on a regular basis. This includes gathering, reviewing, and archiving time sheets, ensuring accuracy in the time reporting process, and ensuring proper authorizations are in place for regular pay and overtime payments. Finally, the coordinator is in charge of packaging and delivering payment to the employees. Payroll is typically completed cutting checks and arranging for electronic deposits into employee bank accounts.
A payroll coordinator can often manage the payroll process hand when a company is small and has a small number of employees. Tax payments are made through a direct business account with the tax agency, and time computations are kept in a financial spreadsheet. However, once a company reaches a certain size, managing payroll in this manner becomes impossible. At the next level, a payroll coordinator is in charge of using payroll software or collaborating with a payroll processing company. Except for the fact that the entire system is computerized, the tasks are essentially the same.
Payroll management requirements grow in tandem with the size of the workforce. A payroll coordinator may be expected to keep track of benefits owed to employees, such as accumulated contributions to a retirement plan, depending on the company’s operational structure. He could be in charge of tracking and executing expense reimbursements, as well as dealing with employee questions about their pay rate and other issues. Depending on the circumstances, a coordinator will work with accounting and human resources personnel to complete these ancillary tasks, or may operate in place of dedicated staff in these departments.