Payroll Accounting Services in the US Key Terms

Understand payroll accounting services terminology before hiring a U.S. firm

Many businesses hire payroll accounting services in the U.S. to handle their taxes, administer paychecks and take care of required paperwork. Hiring a payroll accounting service can save your business money and allow you to tap into the knowledge of experts.

The Internet has transformed how payroll accounting services conduct business, and new technology has allowed customers to communicate and view accounting details online in a way never before possible. Before beginning negotiations, or even interviewing payroll accounting services, it is helpful to understand key terms:

 

Service level agreement

Commonly referred to as an SLA, a service level agreement is essentially a contract detailing the work that will be accomplished by the payroll service. An SLA will also cover deadlines to be met.
Try: Payroll accounting service firm iCatchIT states on its homepage that its SLA spells out the company's reliability in black and white, so that expectations involving service are completely understood by the client.

Payroll outsourcing

Payroll outsourcing occurs when a company hires a payroll accounting service to handle all aspects related to paying employees.
Try: SurePayroll's website includes an article that explains exactly why companies engage in payroll outsourcing entitled "8 Benefits of Outsourcing Payroll."

Practice review

Practice review, where payroll accounting services in the U.S. is concerned, involves a review of a client's financial situation at certain points during the year. The point of this is to avoid surprises when payroll taxes are due.
Try: Thomas & Fees handles taxes and payroll in addition to providing other services. The firm commits to mid-year and year-end practice reviews.

International accounting standards

International accounting standards (IAS) were established by the International Accounting Standards Boards (IASB) in 1973. These standards govern the operating principles of accounting tax services in the U.S. and abroad.
Try: Deloitte Touche Tohmatsu's page provides an overview of how international accounting standards are to be interpreted.

Leave accrual and reporting system

The leave accrual and reporting system (LARS) is a database that tracks and calculates the amount of leave that is used, earned and saved. The system performs these calculations based on regular paid hours within a set pay period and factors them in to prepare for any payroll adjustments.
Try: CMA Consulting Services offers the Leave and Accrual Tracking System (LATSnet) that automates the process of tracking employee leave, attendance and distribution of labor.

Encryption technology

Encryption technology is something that every payroll accounting service that sends financial data electronically or via Internet must use. Encrypted data has essentially been technologically camouflaged so that it cannot be read by hackers.
Try: PayCycle takes data security very seriously and incorporates password protection, 128-bit secure socket layers, firewalls and intrusion-detection devices in addition to advanced encryption.

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