Each and every organization that employs a workforce needs to have a payroll system in place to ensure that their employees get paid for the work completed and receive payments in a timely manner. When it comes to a large scale organization that has a huge workforce, the in-house payroll system process can be overbearing and inconsistent, if not managed properly.
To counteract this, many organizations are outsourcing their payroll services directly to payroll companies. This drastically reduces the employer workload and makes the payment process much more streamlined. Another great benefit of using the services of a payroll company is that employers as well as employees can access the details online from any web-enabled device.
The online payroll services run on the cloud and do not require any software installation from the employer. These services will be automatically updated from time to time to ensure that any compliance procedures and employment tax laws are up to date. Many companies who offer payroll services have the ability to include full time and part-time employees, including freelancers and employees working on a contract basis.
What do the Online Payroll Services Offer?
Some of the main services that online payroll companies offer cater to payroll processing, payroll taxes filing, generating payroll reports, employee integration systems and much more, these are listed below in detail.
Payroll Processing
Payroll companies that provide online payroll services can automatically calculate the amount of money payable for all employees for each pay period. The processing system can account for overtime, holiday pay, wage rates and any benefit deductions. Once the calculation is done, the payroll service can directly make payments to employees through prepaid debit cards, paper cheques or direct deposits.
Filing and Payment of Taxes
Payroll services also have the ability to file quarterly tax reports, withhold employee taxes and pay employment tax to the state and federal tax agencies. Payroll services also include the issuing of employee forms such as W-2 and 1099 at the end of each year.
Payroll Integration Programs
Many payroll companies that offer online payroll services can integrate numerous programs such as human resources softwares, accounting softwares, time and attendance systems and much more.
Generating Payroll Reports
When choosing a good payroll service for your organization, check to see if they can generate detailed wage and labor reports, this can immensely help the employer by providing him with a different perspective on how the business is operating.
There are many advantages of using online payroll services, the main one being that all the calculation processes (end of the year tax forms, employee payroll calculations, tax payments, etc.) are completed on behalf of the organization. This greatly reduces the amount of time spent on these calculations and can also reduce the chance of errors.
However, the main drawback of using a payroll company that provides these services is that the organization will be spending more by outsourcing the payroll process when compared to an in-house payroll system. In extremely rare instances, when the payroll company has made a grave error, the government can charge the organization to pay a hefty penalty. Many payroll companies now offer error-free guarantee, which means that in the event of a miscalculation, the payroll company itself will be responsible to clear any resulting fines.
What are the Employee Onboarding Documents?
Each organization has to comply with employee onboarding documents. These documents can include employment verification letters, job application form, reference cheque notes, resumes, etc. The most important ones are listed below.
Form W-4
Form W-4 is used for withholding federal income tax from employees. Every organization must provide all new hires as well as current employees with form W-4 every year. There are various reasons why an employee would like to update their withholdings (marital status, tax law changes, employee bonus, etc.)
It is the responsibility of the employer to ensure that each employee’s W-4 form is accurate and up to date. The details submitted in the W-4 form will reflect accordingly on the employee’s paycheck, depending on the number of allowances he has claimed for.
Form I-9
Form I-9 is mandated for all organizations as it is used to identify all individuals that are authorized to work in the United States. Each new hire is required to submit this form along with proof of their work eligibility status and identity.
Organizations with a large number of employees can use the online E-Verify system. This system will compare the I-9 forms submitted by employees with the information from the federal database. All employers must store this form carefully, it should be separated and stored from the all other employee data forms.
Form I-9 is an extremely important employee onboarding document, depending on which state your organization operates, your employees may be mandated to use the E-Verify system. Ensure that you check state regulations when asking employees to fill and submit this form.
Drug Test Records
Certain organizations require new hires to go through a pre-employment drug test. These test results must be held onto for a period of one year by the employer. In case the organization deals with business operations in the transport sector, then it will be subject to the Department of Transportation (DOT) regulations. In this scenario, the employer must hold onto the drug test records for a minimum period of 5 years.
Read Full Article Here - What are the Most Sought After Payroll Service Programs?
from TechGYD.COM Updates https://ift.tt/2R1QcXO
This is dummy text. It is not meant to be read. Accordingly, it is difficult to figure out when to end it. But then, this is dummy text. It is not meant to be read. Period.
ConversionConversion EmoticonEmoticon