Q &A for Outsourcing Payroll Processing
Processing payroll has moved beyond daily cash payments to employees. Payroll, record keeping and payroll tax reporting have become both complex and tricky for the uneducated. The process can be time consuming and expensive. By outsourcing your payroll you are avoiding risks and taking advantage of all the advances in technology to save time and money.
Q: How does using a payroll outsourcing provider to process paperless payroll save me time?
A: You have the option to input payroll information anytime, anywhere from any Internet-connected computer. A paperless payroll provider processes all net pays and distributes them electronically. This solution eliminates the hassle of distributing checks, employee check-cashing fees and time away from work depositing checks. In addition, you no longer have to reissue checks that are lost or run through the washing machine.
Q: Does the provider file payroll taxes for me?
A: Your provider will make all your payroll tax deposits for you. They will complete and file all forms to all necessary government entities. These services are guaranteed for accuracy.
Q: How will employees receive their W-2s?
A: All employees with payroll payment vouchers and year-end W-2s can access their individual account to view and print these forms.
Q: How do I receive payroll reports?
A: Your payroll reports will arrive via e-mail or you can login to your Internet account to view and print. They are encrypted for security and incur no delivery fees or storage costs.
Q: How will outsourcing payroll save me money?
A: Your payroll outsourcing provider guarantees accuracy on calculating and filing your payroll tax reports and payroll tax deposits and will pay any penalties or interest charged to you if an error occurs.
Q: How is the processing fee managed?
A: Your provider will draft your company bank account for a single draft item, eliminating the cost of payroll checks and the cost of reconciling payroll checks.
Q: How do employees receive their checks?
A: Employees access their individual accounts to view the payment transaction or utilize their payroll debit card if they opted for that service.
Q: By outsourcing payroll, do I lose the ability to manage it?
A: In fact, by outsourcing payroll you give yourself additional time to manage it. You can review it, complete reports in privacy and have access to professionals, sometimes CPAs, to answer questions and help you avoid pitfalls you don’t even know exist.
Q: Is my payroll too unique for a provider to properly process it?
A: It may have unique aspects, some payrolls do. Payroll outsourcing providers are used to that and have sophisticated software to address almost anything.