If you are still not sure if an online payroll service would fit good for your organization, here are the several questions and answers that might help you come to a decision
Q. How does a payroll service make payments to employees?
A. Payroll Outsourcing Services can pay employees in many ways which include direct deposit, check and pay cards. For check payments, few services provide you with formatted checks and pay stubs that you print out on your own, while others allow you to write out checks. Additionally, some service print the checks and mail them to your office to be hand delivered to employees.
Q. Please explain in more detail how the tax services work. Does payroll service pay taxes on your behalf, or do they just calculate what you owe and you are responsible for filling out the forms and sending in the payment?
A. Payroll Outsourcing Services withhold the necessary taxes from each paycheck during each pay cycle, keeping the money aside when it is time to file, Rietsema said. When it is the time to file, payroll services fill out the necessary forms and even submit the payments as needed to comply with state and federal requirements.
"This could save businesses headaches, as all the taxes are taken care and properly filed on time," Rietsema said.
Outsourcing payroll guarantee tax services, if a mistake is made, they will fix it and pay any fines or interest that’s incurred.
Q. How important is it for the payroll provider select to integrate with other services you use, such as your accounting software and 401(k) provider?
A. Matlack says integrate with other programs like accounting software which can help businesses a lot of time.
"Data seamlessly integrates across all the platforms, small businesses have access to their business data on one platform," Matlack said, "Having payroll that is integrated with accounting software enables small businesses to assess and know how they’re doing and have better visibility into which jobs, products or services are more profitable."
Rietsema believes integrations with other outsourcing payroll programs could be very beneficial, It helps to streamline payroll and prevent errors and hiccups
Q. What are the benefits of having employee self-service options?
A. With this option, employees can track their hour-long, pay stubs, check PTO balance and can access historical payroll data without asking permission from HR staff members or managers, according to Rietsema. This could save human resource professionals time while empowering employees.
"Q. Does it matter when you start using new payroll service? Does it need to happen at the first of the year, or can you switch midyear?
A. Businesses can switch to a new payroll provider any time; however, there are certain times of the year where it is much easier according to LaMarche.
"I typically recommend that a business tries to switch on a calendar quarter, or at the beginning of the year," LaMarche said. "Switching at these times makes it much easier for the payroll transition because it ties out with quarterly tax returns and makes conversion much more streamlined."
LaMarche significantly said there is more data entry and verification that needs to be done when businesses switch in the middle of a calendar quarter because of individual paychecks, instead of quarterly totals, must be entered in to ensure taxes calculate accurately.
Q. What are the benefits of having mobile access to your payroll system?
A. With the help of mobile apps and websites, users can access to their payroll data anytime, anywhere. This gives small businesses the ability to make decisions on the go," Matlack said.
"Whether updating the hour-logs or including a missing transaction in the books, mobile access ensures payroll is updated," Matlack said.
If you think an online payroll service is right for your organization, we encourage you to check out our best picks for various types of employers, our reasoning for picking each and a comprehensive list of online payroll services.