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Making Payroll Preparation Easier

Many companies dread preparation of payroll. Outsourcing payroll, or using a payroll tax preparation company, is a great option for businesses that don’t have the available budget to hire an in-house bookkeeper, or that don’t have the time to process payroll themselves. Even if you outsource, payroll tax preparation will still require a little bit of effort on your part.

First, you’ll need collect any relevant employee tax documents, such as W-4 forms, I-9 forms and employee bank information if you plan to offer direct deposit. The payroll preparation company will make a list of everything they need. Once your account is set up, you’ll need to communicate changes in employee information, such as bonuses, raises, or new employee data. Most payroll tax preparation companies provide standardized methods for doing this, such as filling out an online form. Different payroll preparation companies have different procedures, so make sure you choose a company you can work well with and that is able to meet the needs of your business.