Features of Payroll Outsourcing
One of the best things about outsourcing is that you can take advantage of features that your own employees might not be familiar with or able to provide. Payroll services dont just process checks, they perform a whole host of other services. Here are a few of the most common services that a payroll vendor will offer:
Most vendors offer computation of employment taxes, such as social security (FICA), unemployment, and state and federal income tax amounts. If employees have state and federal taxes withheld and get a refund when they file, a payroll company can compute amounts owed, file the appropriate paperwork, and pay the amounts on the employees behalf. Some state and federal tax laws are more complex, depending on the employees financial situation. For example, employees can take an advance on the earned income tax credit in some cases, or have amounts withheld for pre-tax savings accounts. A payroll company can handle almost any situation that could arise with respect to tax computation and payment.
Another important function is reporting. Payroll outsourcing services can compute costs by employee, by project, by client - all based on the number of hours each employee worked or billed for time. If you pay employees overtime, holiday pay, or sick leave, you know that these costs can add up quickly. Reporting functions are an easy way to see where most of your employee costs are being distributed so you can plan better for the future and save costs where appropriate.
This feature is usually standard in a payroll processing package. Most employees that have worked for large companies have gotten used to the idea that funds will be available immediately on payday. The lag time created by cashing checks can be a big inconvenience. Direct deposit is a great feature that your employees will appreciate.
Online Payroll Access
Employee records can usually be stored electronically. This is also a great feature for any business, eliminating the need to save pay stubs, receipts, or cost reports in paper format. Employees will appreciate this easy access to information. Some payroll companies even offer separate debit accounts, where employees can automatically have a portion of their paycheck diverted into an account with its own debit card. A payroll processing company gives employees more control over their information and a less wasteful storage mechanism for documents.