Category: Payroll Services

Company Payroll Outsourcing Benefits

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Just like marketing campaigns, customer service, and sales; payroll plays an important role in a business. Payroll is not a bookkeeping task or a twice a month annoyance; it dictates how you will retain employees, reward them, or/and compensate them for the work completed. Remember, any miscalculations or errors may affect your business output and have dissatisfied and unmotivated employees.

Calculation errors are not the only concern one has to look at; there are others such as payroll regulations, tax codes, and others. for this reason, when a payroll calculation has errors, other areas will be affected and most likely going to be expensive for your business like the classification of employee and contractor W-2 forms Tax deposit, and its deadlines.

Outsourcing payroll does help small businesses eliminate problems such as mentioned above. Outsourcing offers a lot of benefits to a business and is considered a wise move to shift your business’s payroll task to a knowledgeable and reputable payroll professional.

1. It Saves Time

Handling payroll in-house demands time and attention to details. The demand for time increases when your company’s staff grows. Every pay date becomes a series full of checks and balances filled with sensitive data that demands full attention and varies from one employee to the next; while at the same time ensuring there are no errors. The time needed to handle this task is the time taken away from other important tasks that will help your business grow.

2. Reduces Overhead Costs

All successful business often looks for ways to minimize overhead costs with the aim of increasing profits. As a business owner, your time has a dollar value, which is linked to the revenue generated at any given time. Therefore, the time you are able to save every day, the money you will earn. With this in mind, think of all the time you will be able to save when you delegate payrolls to a third-party company. Doing this will eliminate calculating employee hours, paid time, deductions, sick leave, sign, tax prints, and much more.

3. Increase In Data Security

The truth is that there is a risk that comes with in-house payroll. A good example is identity theft. Employee records viewed by those who handle payroll may lead to identity theft or tamper with records for personal gains. Also, you have to consider the risk of payroll software.

4. Government Compliance Guarantee

A small mistake may leave you open to costly penalties and audits. On the other hand, because these regulations change constantly, the chances of staying up-to-date are low, especially when you are focused on growing the business.

5. Access Various Types Of Services

The truth is that even the most experienced accountants have a limited skill set. However, with outsourced payroll services, a business gets an opportunity to access different types of services and benefits that will help grow a business. For example, apart from tax calculation and standard payroll calculation, you get access to other types of services such as labor laws, contractor services, contract generation, access to health benefits, bookkeeping services, and workers’ compensation payments.

Conclusion

Professional payroll provider companies employ people who are knowledgeable in payroll processing, can handle complex regulations, taxes, government compliance, and more. This is why they are trained to do and the pillar to the service. For this reason, a majority of service providers offer a service guarantee, which leaves business owners worry-free when it comes to payrolls. Therefore, as a business owner, it is wise to save your time, and efforts by outsourcing your payroll. This will give you time to allow your business to grow.

Various Functions Of Payroll Management

Quickbooks Training

Quickbooks TrainingPayroll is an extremely important function of any business – whether you have one employee or an entire workforce. But payroll is a complicated process and involves much more than simply ensuring that each employee is paid on time. Payroll management involves various functions to ensure employees are paid correctly in compliance with government regulations.

1. Processing Paychecks

Processing paychecks is the primary function of payroll management. Make the smallest error in one paycheck and it will quickly become apparent just how negatively this can affect the entire workforce and operation of a business. A payroll manager therefore needs to ensure that each employee’s compensation is calculated correctly in accordance with their employment contract.

Aspects of compensation that need to be verified include:

– The net salary of an employee.
– Their hourly work rate.
– Compensation for overtime
– Commission
– Incentives
– Any other amount that is a form of income

Additional factors that need to be taken into account include:

– Vacation time
– Sick leave
– Maternity leave
– Compassionate leave
– Holiday pay

Common deductions that need to be factored in include”

– Federal income tax
– Health or dental insurance contributions.
– Pension fund contributions
– Repayment of a company loan
– Any other deductions or contributions that have been agreed upon between employer and employee.

Additional Bonuses And Perks

– A car allowance
– Housing allowance
– Mobile phone allowance
– Clothing allowance
– Entertainment allowance
– Any other perk or added incentive offered to the employee by the company.

2. Payroll Taxes

It’s not just your employees who are going to be seriously unhappy when your payroll is not processed correctly. The IRS receives 70% of its annual revenue from payroll taxes. Your company can face severe penalties that could be very costly for failure to pay payroll taxes or by paying erroneous taxes. The IRS penalizes businesses with billions of dollars every year.

A payroll manager needs to be aware of the different tax rates that apply to different regions in the country and make the correct deductions from an employee’s income. They also need to fill in various forms to record and document payroll taxes including W-2’s for every employee by the end of January each year. Form 941 also needs to be completed and submitted every quarter detailing employment taxes that are withheld for contributions. These documents need to be completed accurately and on time to avoid penalties. Training, skills and experience are therefore critical in a payroll manager.

3. Record Keeping

The Fair Labor Act requires that an employer keep accurate records for each employee that is not exempt. The following information in employee and payroll records are required:

– Full name and surname of employee and social security number
– Physical or residential address including the zip code
– Date of birth for employees under the age of 19 years
– Gender and occupation
– The day of the week and time when an employee’s work week starts
– The hours that are worked every day
– Total work hours that are completed each workweek
– Rate at which the employee is paid – hourly, daily, weekly or monthly including the amount.
– The regular pay rate per hour
– The total weekly or daily straight-time earnings.
– The total overtime income for each workweek.
– All deductions from and additions to employee’s wages or income.
– The total wages that are paid over each pay period.
– The date when payment is made and the pay period that is covered by that payment.

The FLSA regulations also require that all payroll records should be kept for a period of at least three years. Records showing wage calculations need to be held for two years – for example, work timetables, time cards and other relevant documents. The payroll manager should ensure that these documents are stored electronically and backed up to be inspected by the Department of Labor at any time.

4. Employee Accessibility

While it is a legal requirement for payroll records to be made available to the DOL, employees should also be granted access to their personal payroll information upon request. A secure online portal provides a means for employees to access their personal information including:

– Summary of benefits
– Summary of pension fund or 401(k)
– Summary of deductions and history
– Details of direct payments
– Time clocks
– Paid leave or time off work

UptoDate Bookkeeping solutions also provides employees with the ability to download and print documents such as W-2s, make changes to tax settings and make online payroll inquiries. This empowers your employees with the knowledge that they need when tax season arrives.

5. Simplifying Payroll Management

Payroll is complicated and a dedicated HR department to handle all the responsibilities that come with payroll simply isn’t in the budget for every company. Outsourcing payroll management and administration with UptoDate Bookkeeping is a convenient and affordable solution to provide business owners with the peace of mind that every aspect of their payroll is being handled expertly and in compliance with the required regulations.

Payroll Services Provide the Necessary Administrative Help to Company Managements

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payroll services minnesotaWhen any business is set up that does have many employees, these persons will all need to be paid at fixed intervals that are normally weekly or monthly. For making these payments payrolls must be made detailing the number of days worked, the payments due based on agreed salaries, and deductions made for taxes or any other dues.

The preparation of payrolls requires a fair amount of work that must be accurate, based on attendance and other records. Businesses find that this requires deputing personnel to the required work, for a few days in a month. Keeping personnel specifically for this job may not keep them fully occupied, and if they are diverted from other work, those jobs may suffer. This is where payroll services that are outside companies can undertake, for a fee, all the work that is required.

In a basic payroll service, the outside company that has been given the work will collect all wage information including days worked and wages agreed on and will make all the necessary calculations, including required tax deductions, and any other deductions, and prepare the payroll. Their services can also include printing and delivering checks, or paying directly into bank accounts, and paying any required taxes to government bodies.

Taxes are often calculated based on the number of dependents a person has, and this requires the payroll services provider to be given the personal information about each employee. These can be federal, state, local, social security and any taxes for medical care. Some of the deductions require a matching contribution from the employer, and it can be the responsibility of the payroll service provider to maintain the records for each employee and make the required contributions to the designated authorities. Many people set up retirement funds as per any rules that a company may have in place and maintaining the records for this and making the needed payments may also be part of the services that they offer.

Payroll services can also offer to take over responsibilities that are normally handled by human resources staff, like administrating leave records and any benefits or retirement programs. While earlier, all the required information needed to be prepared in companies and sent to the payroll services company, the internet has allowed all this to be sent directly through web-based payroll accounts, where the details are constantly being updated by the company and are simultaneously available to the payroll service provider. The introduction of payroll software has made the entire process even simpler.

The 3 Signs You Need Help With Your Payroll

payroll services minnesota

payroll services minnesotaWhen you first start a business, processing payroll seems to be the easiest task that you will have to perform. If you are currently reading this, then you have probably come to the conclusion that payroll is a process that involves more than simply paying employees. Trying to do payroll on your own can take up a lot of mental bandwidth. So, if you feel as though you are ready to outsource your payroll, the following are some signs that now may be the time to hire a bookkeeping company to manage it for you.

Late Payroll

It probably goes without saying that most of your employees do not have a lot of breathing room when it comes to their finances. In fact, reports from the Federal Reserve estimate that over 40% of households in the United States do not have the funds available to cover an unexpected $500 expense.

This means that if you are late running payroll, this can not only mess up their lives, but it can also destroy any credibility and trust you have established as an employer. So, if a bank holiday will throw you off from processing payroll on time, or it slips your mind, consider outsourcing the job to a payroll service.

Missing Tax Deadlines

In the majority of states, small businesses have to make at least eight separate payroll filings annually. These filings include state filings and quarterly filings of the IRS Form 941. Making sure these filings are processed on time is another task that can be forgotten by small business owners. Filing late and/or making late deposits can become costly over time.

Cash Flow Issues

Even small businesses that are successful can occasionally experience cash flow problems. If your business goes through seasonal cycles of ebbs and flows, or you have a major one-time expense, your budget may be destroyed. Whatever your specific problem is, a bookkeeping or payroll service can help you manage your cash flow in several ways such as:

Withholding the taxes for payroll so you do not have to come up with the money at once
Paying your employees through direct deposit
Providing you with accurate payroll data so you are able to make better projections for cash flow

This is list is by no means complete, but it should provide you with a few red flags that you should be on the lookout for. Simply put, an experienced and professional bookkeeping service will give you more time to focus on other areas of your business while minimizing risks that could occur from you doing payroll on your own.