What is Payroll Services?
Payroll services are the utilization of a third-party service provider to manage the accounting and administrative duties of hiring employees. The concept is simple enough. If an overseas company needs assistance in managing its payroll, then it can simply outsource its responsibilities to a payroll service provider located at any point of time within the globe. It’s important to note here that payroll services aren’t just that, and don’t provide a centralized local employer for the offshore company to manage. Rather, they are third-party companies that have been licensed by countries to offer payroll services.
What Does a Payroll Services Provider Company Do?
When you hire payroll services, you make them responsible for:
- Submitting your tax returns
- Filing employee payslips
- Processing tax refunds
- Collecting federal employer withholdings.
They also handle making temporary employee files and preparing temporary pay slips and certificates. In addition, they can also provide assistance with many other tasks including:
- Estate asset taxes
- Bankruptcies
- Lottery payments
- Child support payments
- Immigration filings and proceedings.
If the offshore company outsources part or all of these services, then you can expect to see a significant drop in your annual tax return due diligence requirements. That being said, if your company relies on an in-house payroll department, then outsourcing will likely have no effect on your employee compensation obligations.
Financial & Administrative Support
One common question that arises is “What is a payroll service?” Basically, payroll service is an organization that provides financial and administrative support to businesses of all sizes. Many times, they are referred to as CPA or Chartered Professional Employers. Payroll service offers different services to different businesses, depending on the size and nature of their business. For instance, if your company has a few locally based employees who are responsible for daily tasks such as data entry, typing, and billing, then you would not need a payroll services organization to provide such support. However, if you have several technicians who are responsible for data entry, typing, billing, and other clerical tasks, then you will want to enlist the help of a payroll service.
Benefits of Outsourcing Payroll Services for Your Business
Payroll services offer human resources professionals support in a number of ways. First, payroll services offer benefits such as: employee benefit plans, health insurance, life insurance, dental insurance, accident insurance, disability insurance, and legal costs. These are typically the most common benefits, but payroll services offer more than just these basic benefits. Additionally, the majority of payroll services offer financial benefits such as: cash advance loans, non-cash employee bonuses, 401(k) plans, life coach training, and business growth plans. The list goes on from there and reflects the wide array of employee services that are offered.
- In addition to the benefits listed above, many payroll services include
- direct deposits into a business’s accounts.
- This is a convenient way for employees to receive their paychecks directly before they are due.
- This eliminates the need to rely on bank checks or pay stubs and eliminates the hassle of paper processing.
- Direct deposits not only save time for payroll processors but also helps reduce errors. And also fraudulent activities that can occur with incomplete or non-disposable paper-based processes.
- Payroll processors use direct deposits to keep track of employees’ paycheck information.
What If You Don’t Have a Payroll System
In the absence of this crucial tool, an errant employee would be able to make money that does not belong to them. And use it for personal expenses. Another service that many payroll services offer includes electronic paycheques and electronic payments. An employee’s payslip does not have room for deductions; however, electronic payments go to employees via the internet. Most payroll companies allow employees to pay themselves by using their credit card, debit card, or payroll check card online. This eliminates the need to print out payslips or to manually process payroll taxes at the end of the year. Again, less time is saved by eliminating the need for paper processing and eliminating fraud that often occurs when checks are processed incorrectly.
Paperless Payroll Processing System
Many payroll services also offer a paperless processing system. The processing software collects and stores data regarding each employee’s gross income. This information is then processed using computer databases, taking into account deductions and credits and applying wage rates. Once the processing is complete, each employee’s wages and expenses are debited from their paycheck and electronically filed through the payroll service provider’s secure server. The entire process is then uploaded onto the company’s main server, where it is available for use by any authorized personnel who access the system.
RT Taxation & Accounting; Best Payroll Service Company in Eastern Suburb
RT Taxation can provide a variety of payroll services. However, not all payroll systems are created equal. Many providers are able to offer some, but not all of the features that you may require. Therefore, before you sign a contract with a payroll services provider, it’s necessary to evaluate your own business needs in order to determine which features you will need and which you may be able to do without.
Conclusion
Choosing the right payroll services will ensure that you are able to accurately calculate your employees’ weekly or monthly income and expenses, and will help your business stay compliant with your state’s and local governments.