Buyers Guide: Payroll Services
Processing employee paychecks can be a time consuming and tedious task. Computations can be a maze of paperwork, transfers of funds to different bank accounts, employee savings accounts, and different government agencies. All businesses are required by law to pay certain employee taxes, and to provide end-of-year wage reports (for example, W-2 forms). These tax amounts can change when employee gets married, has a child, or elects to change exemption status for any reason, and the implementation of new regulations (for example, the increase in the federal minimum wage) usually requires immediate compliance. Filing late or error-filled documents results in expensive penalties and fees.
Hiring a payroll company is the solution to many of these issues. A payroll service company is a business that handles a variety of payroll and paycheck processing issues. A payroll company can calculate tax amounts, process employee paychecks, and even generate job and project cost reports. Using a payroll outsourcing company, you’ll save both the time it would take to process payroll documents and any costs associated with learning how to do it yourself.
This buyer's guide also comes with price quotes from payroll service providers.