What is online payroll software?
Online payroll software and online payroll services are essentially the same thing. It is a bit of semantics. The payroll software is what you access online. It is cloud-based software from the online payroll service provider. The software is what you technically interface with to run the payroll and add new employees into the system. Most online payroll software is easy to use and allows you to process your payroll in minutes.
What other benefits does payroll software provide?
There are several big benefits to using comprehensive online payroll solutions. One major plus is its efficiency. You don't have to hire someone to handle all of your payroll needs, because pretty much anyone can use the software. In most cases, all you need to do when running payroll each pay period is to enter the hours each employee worked and any bonuses or commissions they earned. The software does the rest for you. It calculates the paychecks, withholds the proper deductions and automatically deposits the money in each employee's bank account.
Another benefit is that the payroll company takes care of the tax filings and payments for you. Most of them offer a tax guarantee. If they make a mistake when filing your taxes or in how much they pay, they will fix the problem and pay any fines you incur.
What type of payroll service is right for my small business?
When choosing an online payroll service for your small business, there are several factors to consider. First and foremost, you want to make sure it can handle all your payroll and payroll tax needs. Can you run payroll as often as you like? Will it make the deductions you need? Does it give your employees self-service access? Whatever payroll needs you have, you want to make sure the provider you choose meets them.
You also need a payroll solution that is easy to use. The online interface should be simple to understand, and it should allow you to run payroll in a matter of minutes.
Depending on your business's needs, you may benefit from a payroll company that offers additional services, such as time and attendance and HR solutions.
What is unique about comprehensive payroll companies?
Comprehensive payroll companies do much more than prepare your business's payroll. In addition to payroll processing, they handle all of your payroll tax needs, manage your employees' paid time off, report new hires to the proper agencies and offer workers' compensation insurance.
Many comprehensive payroll solutions offer additional services, such as HR management, benefits administration, time and attendance services, and 401(k) and college savings programs.
Why are payroll services important for small businesses?
Many small businesses don't have a dedicated HR team that knows all the ins and outs of payroll. They rely on payroll companies to manage those responsibilities for them. They depend on these services to ensure their employees are properly paid each month and that their payroll taxes are appropriately filed and paid.
Online payroll services give small businesses peace of mind that, with just a few clicks of a mouse every two weeks (or on their chosen schedule), their employees will get the money they are owed and that the proper payroll taxes are being withheld for payment when the time comes. Instead of you worrying about whether you filed the tax documents correctly and are paying the right amounts, online payroll services handle all of those tasks for you. They are so confident about this that most services offer an error-free guarantee.
Do payroll service providers offer mobile applications?
Yes, most payroll providers offer mobile apps for iOS and Android devices. Most of these apps allow administrators to run payroll, review past payroll runs and pay payroll taxes. Additionally, employees can take advantage of the mobile apps by reviewing their pay stubs, pay history and paid time-off accruals.
How long does payroll take to process?
This varies by payroll provider, but many payroll services complete the process within two days. This means that payroll administrators need to submit the final payroll numbers two days prior to payday.
Are there any free payroll software solutions?
There are several free payroll options to choose from, include Payroll4Free.com, Wave and eSmart Paycheck. However, before choosing a free program, make sure it matches your company's basic needs. A free program is great for a business just starting out and helps manage your tax calculations, wage garnishments, and Social Security and benefit deductions. However, when using a free service, you may have to sacrifice a few features like customer service or security tools.
Should you use a payroll service or hire an accountant?
You should hire an accountant if you need help managing the collection and reporting aspects of payroll processing. Accountants can analyze your payroll and provide valuable guidance for businesses, but they can be expensive.
Although accountants can process your company's payroll, the average hourly fee is $33.89 per hour, while certified public accountants charge an average rate of $160 to $275 per hour. Payroll services, by comparison, usually cost about $29 to $150 per month, with an additional fee of $2 to $12 per employee.
How can you save money on payroll?
To save money on payroll, consider outsourcing your payroll tasks. When managing it yourself, you may not do it correctly or on time – and mistakes or late processing can result in hefty penalties and fines. You may also consider looking for a free payroll service. However, most free payroll services don't offer all of the features and tools paid offerings do.
Using a time and attendance system is also a way to save money on your payroll, because it helps ensure you aren't paying employees for time they didn't work. When using a paper timesheet, employees can easily add a few minutes to their time that they didn't actually work. Paying employees for a few minutes of time they didn't work might not seem like a big deal, but if this becomes a habit, the costs can really add up. A digitized time and attendance system forces your team to input exact times, which keeps you from overpaying your staff.
What are unpaid payroll tax penalties?
Unpaid payroll tax penalties apply when an employer fails to pay the Internal Revenue Service the proper amount of payroll tax funds they owe. Failure to complete Form 941 or provide proper documentation, like W-2s or Form 1099-MISC, is also a problem. You also need to make sure your deposits are on time to avoid fines.
What is an example of a payroll tax?
An example of payroll tax is the Federal Insurance Contributions Act (FICA) tax. This is a mandatory payroll deduction that employers pay to the IRS to cover Social Security retirement benefits and Medicare for employees.
What do you do with unclaimed paychecks?
If you are in possession of unclaimed paychecks, this does not mean you get to keep them. According to escheat laws, they become abandoned property and must be signed over to the appropriate state's treasury agency after a certain amount of time. This means if someone who works for you never claims their paycheck, you need to return it to the state where that person last worked. When submitting these documents to the appropriate agency, be sure to disclose all the attempts you made to contact the employee about their check.
What is a pay period?
A pay period is a designated time frame that records the hours an employee worked for which they will receive a paycheck. Pay periods can be weekly, biweekly or monthly. Learn more about the pros and cons of each schedule and issues to keep in mind so you choose the best schedule for your business.
What is the difference between payroll and salary?
Payroll is the system your company uses to record wages (and salaries), pay employees, and track your payments (and the payroll taxes you've paid). A salary, on the other hand, is a fixed consistent payment, usually listed as an annual figure, that you pay to specific employees. Learn more about whether it's best to pay your employees a salary or an hourly wage.
