What does a Payroll Company do?
When hearing the phrase “payroll company” most business owners imagine someone who drafts and issues payroll checks to employees or manages direct deposits. The reality is actually much broader and the benefits of using this type of service provider are extensive. A comprehensive payroll company provides services that support all aspects of payroll management, including the following:
Monitoring employee time and attendance.
To assure accurate payroll, the company tracks hours worked so you don’t have to. Some companies will also track sick leave, vacation and paid time off, so both you and your employees know how much they have used and what resources are still available.
Setting up direct deposit accounts.
One way to improve job satisfaction is to make wages available to employees as soon as possible. Direct deposit is the best way to achieve this goal and a payroll company will manage this process.
Adjusting direct deposit accounts.
When an employee is promoted or an hourly worker has earned overtime wages, the payroll company will make these adjustments to the payroll system and the direct deposit. The company will also discretely address wage garnishment and advancement issues.
Calculating payroll taxes and evaluating deductions.
One of the biggest benefits of using a payroll company is that they manage all aspects of the payroll tax process, including assuring that the correct deductions were made. This time-consuming task is now off-loaded to the payroll company so you can focus on actual employer responsibilities.
Monitoring the relationship between workers comp premiums and actual payroll.
With workers comp premiums, you don’t want to underpay and owe more at the end of the policy term. You also don’t want to overpay and loss access to funds that could be used elsewhere. Top tier payroll companies offer pay-as-you-go workers comp insurance that allows you to pay premium amounts with each payroll cycle, accurately matching worked hours with premiums owed. This system improves cash flow, avoids lump sum payments and eliminates the audit process.
Integrating third party benefit plans, including 401(k) programs.
The payroll company will manage employee contributions to their health insurance and other benefits, as well as address both employer and employee contributions to retirement plans. Their HR experts assure that everything is managed appropriately.
Providing electronic payroll records.
Employees will have electronic access to their personal payroll information and you will have this access for all employees. Employer and employee portals give everyone 24/7 access to this information, which saves time and money.
Assuring compliance with required payroll laws.
Your payroll company will ensure that local, state and federal regulations are met and appropriate payments are made. Elite payroll companies will also file required forms and make payments, so you don’t have to worry about whether this key responsibility was managed in a timely manner.
At Applied Business Services, we give you access to HR experts who will take full responsibility for both your mundane and complex payroll activities, which takes the stress, worry and time drain off of your shoulders. Our payroll and tax service module delivers the expertise and experience you need as well as pay-as-you-go workers comp insurance plans, on-demand employee payroll access and an employer portal for 24/7 access to your information. Whatever your payroll needs and challenges, we are here to help so you can focus on growing your business.