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Payroll processing: Feature Article
If you own your own business, no matter if it is a family owned business, a small business or a medium sized business; you have had the opportunity to learn about payroll processing. If you have been doing your own payroll processing then you have probably already discovered what a nightmare it can be because of all of the ever changing laws and having to stay on top of these changing payroll laws just so you don't make a mistake. The reason that you don't want to make a single mistake when it comes to payroll is that one you will end up having to do payroll all over again, but you will also end up having to pay some hefty fines if the mistakes cost you to pay less in income taxes then what you were required. So because of how hard payroll can be many companies decide to outsource their payroll processing. Here is a look at some of the benefits of outsourcing your payroll processing.
Number one:
Compliance is one of the biggest benefits that companies end up seeing when they decide to outsource their payroll. In fact the IRS, Social Security Administration and Department of Labor all have special regulations for all types of businesses, and what regulations you have to meet is going to depend on what type of business you are running. And because a major part of payroll processing is meeting these requirements it is easier to pay somebody else to do them. That is why most payroll processing companies will offer you the service of tax payment. This service actually guarantees that all federal, state, local, and unemployment taxes are paid accurately and on time.
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Number two:
Confidentiality. This is actually the cutting edge feature that is being offered by payroll processing systems because it allows the business owner to give the responsibilities of payroll to somebody else. This is actually really important in family run business because it prevents other family members from seeing what the other members are making. Not to mention that it prevents non-family member employees from finding out the personal information of the other family members. Many people who own a family business know how the payroll processing schedule can actually control their schedules because of the fact that they have to be present when payroll is being processed to ensure the confidentiality of the family's payroll process.
Helpful Resources: 1. Payroll Services: Payroll Processing Companies This article provides you with links to various companies that you can use when looking for a company to process your payroll. The website also includes a useful guide that you can follow when picking the right company. 2. Negotiating a Payroll Processing Service Contract 3. Payroll Prices - A sampling of payroll services costs collected 5. Outsourcing payroll processing 6. Key Questions to ask payroll processing companies 7. Payroll Processing Services 9. Payroll Processing Companies Article 10. Payroll Outsourcing Company |
Number three:
Convenience. In fact by outsourcing the payroll process you are giving yourself the peace of mind that once the hours are reported that everything else is going to be taken care of by the payroll processing company. And it also gives you the convenience of only having to report the hours and not messing with the taxes at all. In fact all of the vital payroll information, reports, and checks are sent next day through UPS or email delivery depending on if you have direct deposit or need the actual checks. Not to mention that the top level payroll processing firms also provide the added convenience of integrating with other employee benefit service providers.
Number four:
Cost reduction. In fact by outsourcing your payroll you can actually enjoy all of the benefits of an entire payroll department for a fraction of the cost. The reason for this is that it is always cheaper to pay a payroll processing company a flat monthly fee to provide you with all of the reports and payroll information that you need rather than paying an employee and hourly wage or evens pending hours of your own time doing it. Not to mention that the payroll processing company will give the business owner the financial reports and information that they need to manage the business in an accurate and timely fashion.
So now that you have decided to outsource your payroll because you tend to think that the benefits are going to make it entirely worth the low monthly fee that the payroll processing companies charge you are going to need to choose a payroll processing company. There are many choices out there for you to choose from so here are some steps that you can take to help choose the one that is right for your business.
Step one:
You are going to want to find the payroll processing services that specialize in small businesses or whatever type of business you are running. There are many firms out there that you can choose from and they all offer a wide range of products that you can use with their services. Some of the things that they offer are payroll tax administration, 401(k) plans, Section 125 plans, COBRA administration and Workers' Comp just to name a few. Here are some of the more popular payroll processing firms to choose from:
Step two:
You can also manage your own payroll in part or in full with an online payroll processing service. In fact this can save you even more money because for less money and just a small amount of time on your part your business can manage its own payroll with online services that puts everything you need in one easy to use place. Here are some of the better online payroll services:
Sure Payroll
An ace among small business owners seeking an online payroll service because this company focuses solely on small businesses and has a Web based app that is simple and convenient.
Instant Payroll
This is put together by Advantage Payroll and it allows you to manage payroll with a few mouse clicks and make real time changes. The best part is that all you need is a browser and internet access because there is no software to install.
Step three:
If you are still having problems finding a payroll processing company that is going to work for your business you are going to want to look at some of your bigger companies that process payroll. Just because these companies usually process payroll for larger companies doesn't mean that they don't offer smaller businesses good prices or the same services. In fact the best company to talk to that is one of the larger ones is ADP because they have worked hard to maintain and develop their small business following. In fact they aim to be your single source for payroll solutions. In addition to payroll processing they also offer employee screening and selection, benefits (retirement plans) , time and labor management and Workers' Comp.
Step four:
You also need to see what it is that your business bank can offer you. The reason for this is that in order to attract and keep more business banks have started offering even more services and many have ventured into payroll processing. Some of the banks even offer payroll processing for free as long as you choose to use direct deposit and your employees all have accounts with the bank. The best bet that you have for banks processing your payroll is Wells Fargo because they have been the most prolific small business payroll processors. Their ExpressPay service is for the smallest businesses that use phone or fax input, while their ExpressPay Plus includes PC-Based options.
Step five:
If you are already using QuickBooks than you should look to their parent company which is Intuit to see what it is that they have to offer when it comes to payroll processing services. They offer a wide variety of solutions for all aspects of payroll in addition to QuickBooks Payroll Solutions which only costs about $17 per month for a basic in-house solution; it goes up according to your needs. You can also choose from assisted or complete payroll services.
In addition to following these steps here are some key things that you are going to want to keep in mind while you are looking for a payroll processing service:
- They are highly competitive. Their basic processing typically costs between $2 and $3 per check in addition to a base fee.
- You can expect to see additional fees for account set up, adding and dropping employees and changing information
- If you are looking for a complete solution you should expect to pay $3 to $5 per paycheck that is issued
- Because many small businesses do not have proper knowledge of payroll tax rules and procedures they choose to use a payroll processing service so that they can avoid making mistakes. It is a known fact that if you do not know what you are doing it is very easy and quite common to make mistakes.
- Employees as well as federal, state, and local tax collection agencies must be paid on time. If any of them are paid late you can and usually will end up paying some hefty fines or other penalties.
- Each pay period you may need to submit your payroll data to the service via phone, fax, or online. Even if the salaries are fixed you are still going to need to approve it for the payment to be made.
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