Choosing a payroll service: A guide for business leaders
For businesses, hiring a service to handle all of the necessary payroll calculation, processing, and documentation saves valuable time and resources better spent on running the business. This guide explains the features you should look for in a payroll service and provides a framework you can use when comparing potential services.
From the guide:
Regardless of what industry, business or profession you are in, if your organization has employees, it must pay them, which means it must likewise have a payroll system. But a payroll system is much more than merely calculating net pay. Businesses must also track:
- Employee addresses
- Identification numbers
- Federal, state and local taxes
- Medical benefits
- Retirement benefits
- Cafeteria plans
- Unemployment insurance
- Direct deposit accounts
- Plethora of reports and forms
Before the information age, large companies had to employ huge specialized accounting departments just to manage their payroll. With the arrival of computer technology, they could pass some of that overhead cost on to information technology and computerized systems; although, the computerized technology still required a significant investment in personnel and resources.
With the widespread adoption of cloud technology, businesses, both large and small, can now get the benefits of a huge payroll department without actually having to hire and manage one. Vendors that specialize in payroll services provide all of the necessary expertise, documentation and processing, so you and your organization can concentrate on its own business, products and services.
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