Payroll processing service—Taking Away Headaches from Employers

2007-03-08 10:33:40

( Computers )



A higher number of employees usually leads to a more complicated payroll processing system. There is more to it than just giving workers their salary. To take away the hassles of computing deductibles and receivables per employee, outsourcing companies now offer payroll processing services.

Outsourced payroll does not mean reneging on your responsibility as an employer. The opposite is in fact true. By outsourcing your payroll processing service, your company can enjoy a more accurate wage and tax liability payment system for your employees. This further prevents you from having problems with tax filing and compliance that ordinary companies are suffering from.

One of a series of accounting transactions concerning payment of employees, payroll processing service comprises deducting an amount from a worker’s salary for the payment of insurance, payroll taxes, and adding a percentage of their gross pay for additional cash benefits, such as bonuses, commissions and the like.

The basis for payroll processing service traditionally involves the calculation of hourly wages, commission, as well as repayment for employee-paid expenses.

Thus, payroll processors who offer their services usually need information such as the number of hours an employee has done work, and how much he or she is earning per hour. These data may be transmitted though a phone call, fax or through the Internet. Some payroll processors need more data, but for most, the payroll time sheet is enough. With the payroll online service, an employer will also have an easy time inserting newly-hired workers in the payroll.

After an accurate computation of deductibles and receivables per employee has been made, the payroll processing service companies prepare the checks themselves, ready for signing by the employer.

Besides to quicken payroll processing and payment, perhaps the best feature of the payroll processing service is that they keep a timely and accurate computation of state, local and federal tax liabilities. The filing of quarterly and year-end returns is also part of their services so employers won’t have to worry about messing with tax liability laws.


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