With all of the stuff that goes on these days over the web, why not online payroll processing? A lot of companies have started to ask this question, and technology providers have delivered. Now, web based payroll is a big industry, and businesses of all sizes have found it to work well as an efficient documentation of time and attendance as well as fiscal data for employees.

What about learning how to use Internet based payroll tools? The web has developed a robust set of venues for learning about training options for this kind of payroll and HR admin. Readers who want to outfit their business can find resources like the following:

1. Links to training programs from schools that will get a professional knowledgeable about implementing and using these systems.

2. More from associations and public sites pointing HR people toward online payroll services for small business.

3. Additional learning opportunities from independent firms on the web.

Action Steps
The best contacts and resources to help you get it done

Find schools for online payroll processing training

Lots of business schools, as well as regional colleges, offer course work in doing online payroll: look for the specific programs that will prepare staff for dealing with the Internet payroll service that fits the size and scope of the business.

I recommend: Get online payroll processing training from educational institutes like Genesis Business College, from an expansive catalog of business courses. Or find similar payroll course options from local schools like this one from Tunxis Community College.

Look to national associations and workforce agencies for more on online payroll processing

Readers can also get training resources from groups with a hand in helping America's work force stay fully documented, from trade groups to educational agencies. Find tips on dealing with complicated payroll agendas as well as links to specific software tools and guides.

I recommend: Get online payroll training and much, much more for your business at the American Payroll Association online. For more, look to the American Council on Education's National Guide to College Credit for Workforce Training.

Look for more online payroll processing training from other websites

There are certification programs, seminars and other venues for getting staff savvy about doing online payroll processing. Find the options that work best, either online or in real time, for your schedule and the needs of your specific business.

I recommend: Find certification type programs for business payroll online at Training-Classes.com. Or find other training solutions like free seminars online from Paychex.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  For any kind of online payroll education and training, make sure you have the tools you need to pass on that instruction to the people who will be doing the pointing and clicking at the customer service level. Online payroll information, if not properly distributed, can sometimes not be worth a whole lot.

Payroll processing ranks as one of the most commonly outsourced business functions. Why? The tedious task is both time-consuming and complicated. Traditional payroll services have been handling the chore for business owners for decades.

But these days, small businesses have a newer high-tech option: online payroll solutions. Online payroll solutions don't require any software, any special equipment or any training — all you need is a Web browser and an Internet connection. An online payroll solution can:

1. Save time.
2. Save money compared to traditional payroll services.
3. Reduce the chances of getting hit with IRS payroll penalties.
4. Maintain security.

Action Steps
The best contacts and resources to help you get it done

Is it right for you?

Online payroll providers make it easy for you to see how they work with demos, Webinars and the option to run a sample payroll.

I recommend: Take a guided online tour at SurePayroll.com or view a Webinar at Paychex.com. Find out if ADP's online component, EasyPayNet, is right for you by filling out the short Solution Builder form. View a demo or run a sample payroll at PayCycle.com.

Set up an account

For your initial account set-up, either enter your payroll data yourself or send your payroll info to the solutions provider and let them do the data entry for an additional fee.

I recommend: Get a quote from SurePayroll.com or sign up at PayCycle.com, which will walk you through the set-up process.

Track employee hours and vacation days

If you need to track employee hours by department, or if you have hourly rate premiums, look for a solution that meets those needs. Insist on a service that can also track the accrual of personal, sick and vacation days.

I recommend: View a demo of Paychex.com's Internet Time Sheet to see how it can facilitate tracking employee hours.

Print checks

For your convenience, choose a solutions provider, such as SurePayroll or PayCycle, that allows you to print checks from your own computer rather than having to wait for checks to be sent in the mail.

I recommend: Order check-printing stock at DeluxeForms.com

Payroll taxes

Online payroll solutions offer a variety of tax services, including calculating taxes and deductions as well as filing federal, state and local payroll taxes. Some providers also calculate and file 1099s for your independent contractors.

I recommend: View the various tax and compliance services offered by ADP.

Integrate with your accounting software

Look for a provider that allows you to link your payroll data to your accounting software program.

I recommend: SurePayroll.com allows users to download summary level payroll data into QuickBooks. Paychex.com links to QuickBooks, Peachtree, Creative Solutions Accounting and MYOB.

Reporting options

Consider the types of reports you need when choosing an online payroll solutions provider. Reporting options vary and may include overall payroll, taxes and deductions per employee, taxes and deductions per pay period, benefits reports and department reports. Find out if reports are customizable.

I recommend: Download Paychex.com's free ReportLink software to generate a number of reports and view the service's Web seminars on reports.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  For your security, verify that the online payroll provider uses a recognized service, such as VeriSign, to authenticate data transactions.
• •  Look for service guarantees and money-back refunds if you aren't satisfied with the service.
• •  Choose a provider that offers direct deposit as an option.
• •  Online solutions stay on top of changes in tax laws so you don't have to.
• •  Make sure your solutions provider lets you view and approve payroll prior to being processed.

As so much of today's business gets done with a vast variety of high-tech tools, companies both large and small are finding that they benefit from bringing their paper payroll solutions online. New online payroll options eliminate a lot of work for HR managers and contribute to a more efficient business. Knowing some of the basic terms for online payroll helps business decision-makers chart the course for getting the best online payroll options in house.

Action Steps
The best contacts and resources to help you get it done

Hourly rate

The vast majority of workers at most conventional businesses are wage earners. Their hourly rate determines what their pay period total will be. Online payroll does the hard work of figuring all of the hours at various hourly rates to come up with a total.

I recommend: See a visual description of using hourly rate calculators in online payroll at Saasu.com.

Electronic filing features

The ability to use online payroll to file state taxes online is a very desirable feature. This saves a business much time and adds to the functionality of the payroll solution.

I recommend: Look for a mention of electronic filing for state taxes in a rundown of online payroll features at this Buyer's Guide to Online Payroll.

Deferred compensation

This term is used to describe compensation that is held for a time period in the future. It usually applies most to contributions to retirement plans for employees.

I recommend: Learn about deferred compensation at Quatloos and and a whole lot more key terms at this Online Payroll Guide.

Direct deposit

This is another hugely popular feature of online payroll. A fully automated payroll system allows employers to deposit wages or other compensation into an employee's bank account electronically. The old system of mailing checks is more costly and time intensive. Direct deposit, for many companies, is the way of the future, and online payroll can help forward-thinking businesses get there.

I recommend: Find out more about direct deposit from ElectronicPayments.org.

Electronic payslips

Along with direct deposit, the financial reporting of the employee's earnings can also sometimes be done online. This practice, though, is liable to certain federal laws. Online payroll can facilitate e-statements, but employers should check about any liabilities first.

I recommend: Read up on the specifics of doing payroll statements online vs. on paper at PayPerShop.

Online payroll integration

For many companies, the best options for online payroll are those that can be integrated with other accounting software to allow for a holistic company IT system for payroll, A/R, A/P and all that goes on financially.

I recommend: Check out this article at AccountingWeb for more on online payroll integration.

When it comes to online payroll, it can seem a bit hard to an owner of a small business. Everything from federal tax, to state tax, Medicare and more must be properly deducted in order to keep the books correct. To help remedy the tough task, many software companies have released online payroll solutions that are quite user-friendly.

Take the time to learn about the different online payroll solutions to see what might be the right fit for your business. Here are some resourceful links to help get you started. Think of this little tutorial as online payroll for beginners.

1. Find online payroll solutions and services that offer demonstrations of their products via the Internet.

2. Compare business payroll online software with similar programs, as well as traditional methods of bookkeeping.

3. Find online payroll services for small business and see if it provides you with the necessary solutions.

Action Steps
The best contacts and resources to help you get it done

Get demos of online payroll processing software and solutions

Many Internet based payroll solutions offer demonstrations of their software. Take the time to interface with these demonstrations and learn about how the software operates. Then determine if these software solutions are a good fit for your online payroll services needs.

I recommend: Visit the website for PayCycle for an online demo of the payroll solutions they produce. Also visit the website for ADP Small Business Services. They provide a demo of their online payroll software as well.

Compare online payroll processing with other software and other payroll methods

Many online payroll software companies detail the features their software solutions offer so that they may be compared and contrasted with other software or more traditional forms of keeping payroll records. Determine what your small business needs based on size and amount of payroll and then compare and contrast the various software solutions.

I recommend: Check out the website for Sure Payroll. They offer a comparison of their software with other more traditional methods so that you may make an informed decision. Paychex also offers a bullet point list of the features their software solutions offer that you may then compare with another Internet payroll service.

Seek out online payroll services for small business

There are many companies that produce payroll software targeted specifically for small businesses. The features, functions and applications are all geared toward an office of between a handful of people to about 50. Find these software programs and read up on the features they offer to see if they are right for you.

I recommend: The company Intuit produces payroll software that specifically targets at small businesses. Also, the business publication HR World released an article regarding the top 10 small business payrolls solutions.