Blog Detail

  • Home
  • Know More About Payroll Work for Business

Know More About Payroll Work for Business

Whether it’s a cloud-based solution or a manual process, you need a system in place to track employee hours, understand deductions and issue payments to your workers.

Adopting a manual process can be a massive drain on time and resources for a growing small business. If you have several employees, you have to track their hours and rates manually. Then you have to research both federal and state tax laws, so you’re deducting the correct amount for taxes from each paycheck for taxes.

After all this, you have to pay employees, track year-to-date spending, and keep an eye on time-off payouts. If you’re trying to work on payroll and run your business, it’s easy to become overwhelmed.

Payroll technology automates all the necessary requirements of accurately running payroll. It automatically calculates the correct amount your employees should be paid each pay period based on the number of hours they’ve worked. If you have salaried employees, payroll software tracks them and pays them accurately. It can even account for and calculate overtime pay.

One of the most significant advantages of using payroll software is having taxes automatically deducted from staff paychecks. You won’t have to worry about paying payroll taxes each spring or misreporting employees’ wages.

Payroll systems often provide online portals for your employees to view important payment information, such as tax deductions and 401(k) withdrawals.

Most importantly, payroll technology allows you to run your business rather than spending time on administrative tasks.

Did you know?Did you know? Many payroll companies will give you a 100% accuracy guarantee, so if there is a mistake, the payroll company takes responsibility and your company isn’t on the hook with the IRS.

How much do payroll solutions cost?
If you’re going to use an outside service, finding the right payroll solution means assessing your revenue and understanding what kind of system you both need and can afford. There are two standard cost structures when it comes to payroll services: monthly payments and per-payroll payments.

Monthly pay structures entail a base monthly fee and then a fee per employee. Base fees range from $30 to $150 per month, while the employee fees are $2 to $15 per employee per month. A flat monthly fee allows for unlimited payroll runs at no extra cost.

Per-payroll price structures mean you pay a fee every time you run payroll, plus a per-employee fee. These per-payroll fees can vary between $10 and $100 per run. The employee costs are usually $2 to $15 per employee per month.

Payroll software automatically calculates and deducts both state and federal taxes from your employee’s wages. It also handles payroll tax support and payments to the government.

Make sure to ask the company you’re considering about this feature. Most companies provide payroll tax payment support, but some may not.

In any case, one of the major advantages of working with a payroll software provider is not having to worry about taxes, tax law and employee taxation changes. Payroll companies have team members dedicated to monitoring these subjects and implementing any changes in your business. This kind of attention can keep you compliant, and you don’t have to spend time sifting through tax law.

Is payroll an HR or finance function?
Payroll functions both in an HR and finance capacity. It involves finance because payroll is one of your business’s overhead costs. Payroll is also a function of HR as it involves tracking workers’ hours, time-off requests and benefits.

Many payroll companies may integrate with your existing time and attendance software and your HR management tools. Some companies – like ADP – may provide their own versions of these services to bundle with your payroll offering.

How do you migrate your data between payroll providers?
If you already work with an online payroll provider and want to switch to a new service, it’s possible to do so with minimal headaches.

The best time to switch is usually at the end of a quarter or the beginning of the year, but this is not a requirement set in stone. Before switching, talk to your new payroll provider – or prospective service – and ask for advice.

Based on your business’s specific situation, it could make sense to ask your new payroll provider when the best time is to switch, what information should be prioritized in the move and how long the switch will take.

According to Insperity, here is some basic information you should have available when you switch:

Employees’ names, addresses and Social Security numbers
Deduction information or W-4 information
Employees’ bank account information
Your federal, state and any other tax ID numbers
Year-to-date and quarter-to-date totals
Voided checks
Copies of your tax forms from the previous quarter

Write a comment