Are you a small business owner currently paying a pricey fee to payroll service providers? More often than not, it is necessary to outsource payroll to a service provider because tracking employee time and calculating payroll and payroll tax liability can be complicated and time-consuming, not to mention how many people view completing tax forms as a tedious, painful process.
The time spent pulling your hair out trying to figure out payroll could be time spent driving in new business, right? These are common reasons why business choose the alternative and outsource payroll to a service professional. The extra expense on your monthly income statement is worth peace of mind of knowing your payroll and payroll taxes are accurately calculated. After all, no one wants to have to deal with the IRS if payroll taxes are calculated incorrectly.
We offer your business a perfect solution that can give you the best of both worlds - outsourced payroll at a lower rate when compared to other payroll service providers. We can include payroll to the other services we handle for your company, such as accounts receivable or accounts payable services or you can hire us strictly for payroll services.Setting Up Employees
We can set up employees in your system if you haven't done so already. We'll need certain information from you to create the employee such as:
- Employee name
- Employee address
- A copy of W-4 form
- Direct deposit information, if applicable
- Pay rate
We're aware direct deposit is increasingly popular and many employees opt for the convenience of having their money in their bank account without having to make a trip to the bank. We're also aware there are some traditional folks who still prefer to receive a paper paycheck. Because of this, we offer your employees the option of receiving a printed paper check or having their paycheck deposited directly into their bank account.Pay Rates and Other Payroll Items
Base Pay: Base pay consists of your employees' salary excluding additional payments or allowances. Base pay is calculated as an hourly rate or a base salary is agreed on at the beginning of employment. Tracking time and Payroll schedules sections below give more information on how we distinguish the two types of base pay when computing payroll.
Vacation and Sick Time: We'll set-up pay rates for vacation and sick time because all employees need some time off and will also get sick on occasion. Even if the pay rates for vacation and sick time are the same as their base pay rate, we will still create individual rates to ensure your payroll records accurately reflect the correct time allocation for each of your employees.
Payroll Items: Payroll items are additional items that are added or deducted from your employee's base salary and ultimately affect the calculation of their net (take home) pay. We'll set these items up for you and track and calculate them. Some common payroll items are listed below:
- Insurance benefits: If your employees have medical or dental benefits, we will include the amount paid for these benefits on their pay check.
- Retirement benefits: Common retirement benefits are 401K or IRA plans and if your employee has either of these plans, we will include these in our payroll calculation.
- Paid time off: As mentioned above, vacation and sick time will be tracked for each employee and there is the option to include the balances of vacation and sick time on employees' paychecks.
- If an employee is required to travel for work-related reasons or entertain clients to drive sales, we can include reimbursements due to the employee in their paycheck (commonly referred to as T&E reimbursement).
- If your employee(s) are required to drive as part of their daily job and are reimbursed for mileage, we will add the reimbursement to their paycheck (common addition for SalesForce).
- If a business need arises which requires an employee to receive a cash advance, we’ll include the money received in their upcoming paycheck
These additions are calculated separately to ensure posting to the correct general ledger account.
- Deductions: Though less common, we do offer the service of calculating any deductions necessary, the most common deduction being employee wage garnishment.