Payroll services are designed to make payroll processing simple, while also helping you comply with the policies and regulations involved in payroll, taxes and IRS reporting.
When it comes to managing payroll, you may be using your own accounting software, like QuickBooks or FreshBooks. These platforms offer the features necessary to help you comply with regulations on your own, but the overall process can be time consuming and complex as you hire more employees. It can be easy to miss things here and there, which can result in payroll errors or hefty fines.
You may find that processing your payroll online with a service can bring peace of mind. Having a service handle the process for you can save you both time and money if you aren't confident in your skills, or when you just don't have the time it takes to process payroll for multiple employees.
The Benefits of Using an Online Payroll Service
Complying with major laws and regulations like the Affordable Care Act (ACA) – which applies to businesses with 50 or more employees – is a big benefit of having a dedicated service manage your payroll processing. These regulations typically require you to file certain forms to avoid an IRS fine. Other regulations, like paying your employees on time and correctly, are always required of you, regardless of the number of employees you have.
In addition to federal and state laws, there are lesser-known regulations and other processes involved with payroll that not every company handles on a regular basis. Payroll providers can manage these issues to keep your business running smoothly.
Pay Distribution Options
Many online payroll services include three options for paying employees: direct deposit, pay cards and checks. If you pay your employees by check, you can pay your employees through any of these methods. However, several states require employees to receive their pay through direct deposit. If those employees don't have bank accounts, you can use pay cards, where you load paychecks directly to a debit-like card for employee use.
Integration with Other Business Solutions
Payroll is the last step of a long process. Gathering information before payroll can be complex, and good payroll companies integrate with other common business solutions to help the process run smoothly from one step to the next. For example, many time card software solutions automatically convert employee hours into a CSV file. The payroll provider then uses these files to calculate each employee's paycheck.
Most point-of-sale systems also integrate well with online payroll services, which is a big help if your employees' compensation includes tips. Likewise, integration with e-commerce and CRM solutions make it easy for the payroll service to track sales tax and commissions. You need to accurately track and report both sets of data as part of your overall payroll responsibilities.
