The biggest advantage of a payroll service is that takes all payroll responsibilities away from the business owner, allowing them to focus on other aspects of running the business.In addition to return time to the business owner, the payroll service can (but not all services do) pay the payroll taxes on behalf of the employer. All employers pay taxes on their W-2 employees. Taxes such as FUTA, SUTA, FICA and MediCare are collected per payroll and paid in quarterly (or weekly depending upon the size of your payroll in dollars). What services are offered by outsourced payroll services?
· Payroll processing: payroll services automatically calculate how much employees should be paid each pay period. The systems take into account shift differentials, overtime, holiday pay and taxes, as well as Social Security and benefit deductions. They then make payments to employees by direct deposit or check.
· File and pay payroll taxes: These services can withhold employee taxes, file quarterly payroll tax reports and pay tax withholdings to the proper state and federal agencies. In addition, they issue employee W-2 and 1099 forms at the end of the year.
· New hire reporting: Many services report new hires to the government on your behalf. · Paid-time-off management: Many of these services manage paid time off by tracking how many vacation and sick hours employees have earned and how much they’ve used.
· Employee self-service: Typically, employees can access the system in order to view pay stubs, PTO balances and year-end tax forms. · Mobile access: Many systems offer mobile apps or mobile-friendly websites that let businesses manage and run payroll from smartphones or tablets.
· Payroll reports: Most systems offer detailed wage and labor reports that provide a deeper look at how a business operates. Most business owners are laser focused on growing their business. That kind of focus requires vision to seek out those services which, no matter how large they become, do not add to the revenue growth of the company. To realize that growth business owners look to outsourcing essential business functions, such as payroll and HR. Outsourcing non-business growing services gives business owners their time back. Time, they can better spend on those tasks that grow their business.