Thursday, May 22, 2008

Payroll processing services

Payroll processing is a term that encapsulates every procedure that remains directly/remotely connected to paying the employees in an organization -from tracking the working hours of the employees (individually and collectively) to proper calculation and payroll tax filing, incentives, commissions and bonuses to everything mentioned in the labor law rulebooks.

That sure sound a tough job to the uninitiated even if a handful of employees are concerned; but with proper and proven HR software systems, processing the data for a large number of workers also become a cakewalk. Payroll administration requires keeping track of every employee and a well planned and an efficient payroll administration system is thus of paramount importance.

• Choosing a Payroll service

Catchy names being galore, there also stays associated several key factors when it comes to considering a payroll processing company. These are:

- Turnaround time: A fast one is always desirable but without any mistakes; even if there are minor ones, the company should be able to correct them within a 24-hrs time.

- Accuracy: Outsourcing doesn’t take the burden off the employer’s shoulders; in fact, he remains all the more liable for paying employees correctly. Accuracy of information in payroll processing is thus one of the vital criteria.

- Maximum efficiency: This is regarding keeping track/ updating employee information; the process should take minimum time and should offer less complications.

- Customer service: If communications are faulty, the whole payroll administration process suffers and so does the service buyer. A payroll company, thus, must make qualified PR personnel available to provide the help to avoid any potential financial mishandling as well.

• Relaying Employee Information

Employee payroll data is now transferred electronically (courtesy: Internet) to speed up the relaying process. A software stays responsible; the data that are relayed includes the pay rate, the deductions, vacation time etc. for every employee.

A dedicated, standalone computer takes care of the job if there’s no web-based employee payroll system is present; these also take care of payroll tax filing through EFTPS or the Electronic Federal Tax Payment System. This facilitates electronic fund transfers and paying of taxes instead of writing checks. All these culminate into one thing – recognition for your company among prospective applicants.

• F.A.Q.

Therefore, with all being said and heard, double check your short-listed service providers with the following questions:

- How to get started?

An employer needs to submit his business' federal and state tax IDs, the W-4 information and year-to-date balances. Anything else asked for is irrelevant.

- Are direct deposits supported?

This is one of the main advantages of using modem-based services. The employees’ pays are distributed into multiple accounts by electronic transfers.

- Reports provided

A payroll processing company with a good reputation shall offer 100 standard reports (approximately) including Check Register, General Ledger and unused deductions reports from which an employer can choose employee/department/region specific amounts on a month-to-date, quarter-to-date and year-to-date basis.

- User access availability

That simplified, is a full or restricted access for all employees, including HR director and department supervisors at the discretion of the employer. A payroll administration report with an access speeds up getting the employee details.

System security

A SAS 70, Type II audit of internal control and 128-bit encryption technology with multiple, offsite backup locations is vital for preserving the confidentiality of the payroll processing reports; with a 24/7 system monitoring facility, it’s increased tenfold.

Any company practicing the above is a sure shot for any employer, who is currently in the doldrums with payroll administration and related corporate affairs. Find a number of them listed at Respond; what satisfied three million others is bound to take you to the 9th cloud for looking at things from a higher level.


Dante Paner said...

Getting to know the real meaning of the terms gives us the credit to continue or move on....just like your article in which you give all the details provided such as process, tips, etc..

Firebug4u said...

As it is nowadays companies are not concerned about the cost when quality is a big it is necessary to be accustomed with the key terms.