|Payroll Processing Services|
Primary payroll processing services comprise counting paycheck and taxes for each employee, printing and sending checks, and providing reports. Paychecks can be issued on a weekly, bi-weekly, semi-monthly, monthly or yearly basis. For larger companies with more complex processing needs, some payroll vendors offer HR software systems that track employee benefits information in addition to regular payroll data.
Many payroll services offer the option of filling federal and state payroll taxes for your business. This can be an important feature given the fact that the Internal Revenue Service has reported that one of every three employers has been charged for a payroll mistake, with total penalties reaching billions of dollars.
Usually, this payroll tax filing service is offered at little or no cost. This is because the company will impound the tax due at the time paychecks are issued, earning interest on the funds until the money needs to be given to the government.
Just because another company handles the payroll tax filing does not mean you can stop worrying about making sure the fillings are timely and correct. While most services assume responsibility for penalties resulting from incorrect filing, your company may be vulnerable for any interest charges. Keep in mind that many companies will not calculate local or city payroll taxes. Make sure to ask about this if it is a significant issue for you.
Choosing a Payroll company
There are several key points to consider when to choose a payroll company. Talk to several payroll service providers and evaluate them on these criteria:
You are still liable for paying your employees correctly, even if you outsource the payroll processing.
What time turnover do they offer? If there are mistakes in your payroll, how quickly can they be corrected and re-issued?
Ease of use.
Tracking and updating employee information should be easy and quick for maximum efficiency. Also important is customer service. Unlike some other business services, you will need to communicate regularly with your payroll company, so make sure they have qualified personnel available to work with you.
Speak with customer service experts to confirm whether you will be able to get the help you need. Consider references from current clients to get a better sense of the provider's level of customer service. Finally, check that the company is bonded to ensure your company will not suffer from any potential financial mishandling.