If you are running a business then chances are that you have employees working for you and you are paying them salaries and/or wages.
Now, paying salaries and wages to employees may sound simple if there are only a handful of them to work with, but when your business really starts to grow and you are hiring more and more employees, suddenly this task becomes extremely difficult and hard to manage. There are just so many factors here at play, that you immediately realize you need a system to handle the load.
This is where a professional payroll service provider comes into the picture that does the heavy lifting for you. Every person has his niche and finance, accounts, and taxation may or may not be yours. Even if it is, it quickly becomes unmanageable to handle everything manually.
So how do you choose a payroll payment processor that is suitable for your needs and requirements? You can open the door for ADP business payment solutions that are specifically designed to help businesses pay their employees their salaries and wages, calculate and deduct taxes, and reduce operating expenses. Before you choose a solution, here are some of the features and benefits that you must make sure that any payment processor has to offer:
Online Payroll Services
Online payroll payment processor services operate from a cloud-based system, which makes it easy to access from any part of the world. Here are some of the features that these companies have on their substantial menu:
~ Run payroll – this feature will help you to automatically calculate the amount that is due to employees at the end of each period. Not only this, it will also automatically make the payments to the employees via wire transfer or direct bank deposit without human intervention. It can even divide an employee’s compensation between multiple accounts like checking, savings and even an IRA.
~ Payroll taxes – this feature, as the name suggests, will help you calculate the amount of taxes that you are supposed to withhold from your employees for the purpose of filing quarterly payroll tax reports. After this, the taxes collected will be paid to the respective state government. The payroll service will also issue the pivotal 1099 and W2 forms to the employees.
~ Filing reports – there are quite a few reports that as a company you are required to file at the end of the year to the state, federal, and local governments. Everyone knows the tax code is beyond complicated but that is another topic. You may want to review these reports before they are filed. Make sure they are correct and free from errors.
~ New employees – some of these payroll payment processors may also help you with notifying the government about the new employees that you have hired during the year.
~ Accounting software integration – as the name of the feature suggests, these online payroll services will also connect with your accounting software in order to give you a complete picture of the situation. This will save you the time it would usually take to enter everything manually as everything is now automated.
~ Paid off time – again as the name of the feature suggests, this payroll service will tell you the employee paid off time during the course of the period so you know how much paid off time the employee took and so you can manage your employees accordingly.
~ Manage employee benefits – some of the online payroll services help you with handling and managing the employee benefits and things like insurance plans, medical plans, flexible spending limits, and accounts, travel reimbursement plans, and more.
~ Manage retirement services – it is required by law to manage and keep track of 401k plans, IRAs, and employee retirement plans. This will help the employees control, manage, and monitor their contributions.
So as you can see, hiring the services of a professional state of art online payroll service will make your job so much easier. Paying salaries, wages directly at the end of the period to the employee’s bank account, calculating taxes, filing reports, passing accounting entries, managing benefits, and so much more.
Another detail that you need to check before you make the decision of hiring their services is to check their security features. Since you will be handling so much data and information with online payroll service, it becomes imperative that the security is taken seriously. You do not want to be in a position where all those financial and administrative data is compromised and falls in the wrong hands. That will be an ugly moment!
Aspects to Consider
The software should be easy to use. It should offer you complete control over the management of tasks that you entrust it with. It also needs the ability to generate and view reports on the fly, view historical data as required, and make real-time changes in the system. It needs to be compatible with your other software and tools such as banking software, accounting software, and CRM tools. It needs to be a team player integrating with other cloud-based service providers.
So implementing a payroll payment processor will reduce your workload allowing you to focus more on growing your business.