Choosing The Right Payroll Service For Your Business

Making payroll every month can be a daunting task for both small and large businesses alike

. Payroll involves much more than writing checks and giving them to employees. Payroll is a complicated process that involves many steps and adherence to multiple government rules and regulations. The individual who is responsible for payroll functions must select employees who are knowledgeable of payroll practices and efficient in completing payroll tasks.

The tasks associated payroll are many. There are mandatory deductions that must be withheld and reported in accordance with government regulations Payroll involves calculations to determine the amount of taxes employees should pay. Payroll tax payments must be made in a timely manner to avoid penalties. Staff must keep track of time sheets and get direct deposit payments into the bank accounts of employees on time. Additionally, payroll managers and staff must keep abreast of ever changing tax rules and labor regulations.

Employee benefits also require the attention of payroll staff. Companies may offer dental and health insurance, disability plans, flexible benefits plans, payroll deductions for 401-k or other long-term savings plans, and deductions for fitness center memberships and charitable donations.

Some companies choose payroll software to help ease the burden of payroll tasks. Such software reduces many of the calculations that had to be done manually in the past. However, such software systems must be managed by persons competent in accounting. Individuals with computer programming skills or software expertise may also be necessary since technical glitches need to be handled immediately to make sure payroll tasks are accomplished on time.

One solution to payroll running smoothly is to outsource payroll services.When choosing payroll service, do not be afraid to ask as many questions as possible. It is a good idea to check with other businesses to determine if they outsource payroll and whether they are satisfied with their services. Read contracts carefully. Pricing for such services can vary. Some payroll service companies may charge fees for each service provided, while others charge a flat rate.

If the payroll departmental budget is an issue, it may be possible to outsource portions of payroll duties. It is also important to ask the payroll service provider if they use the Electronic Federal Tax Payment System. According to the IRS, U.S. Treasury regulations mandate that this system is used when a company has payroll taxes of $200,000 or more per calendar year and includes mechanisms to verify that such taxes have been paid.

by: Rob Barker

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