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.

When to outsource payroll service?

Uh, isn’t that asking like when to drink water? Well, jokes apart; let’s have a look at a few questions first:

- Is your business a big one?

- Do you spend considerable time every month figuring out how to treat your employees fairly on the financial front?

- Are you comfortable with calculating properly all the payable taxes and social security (including your own) along with the incentives, commissions, bonuses, overtimes and anything else stated by the employment or the labor laws?

- Do you enjoy extensive calculations regarding tax filing?

- Do you have enough budgets to set up a dedicated team of people handling the payroll accounts?


While a Yes to the first question is enough to inflate your ego, the rest is no better than a pinprick that deflates. You got your answer.

• Time to turn to payroll service

Do the above sound a piece of cake? Certainly not, especially when it is about a large number of employees. This is because processing a large amount of employee data and payroll administration, if not performed in a well planned and efficient way might just bring a windfall to an otherwise smooth system. So give it to people who knows their job; it’s guaranteed the charges shall come up a lot lesser than what you would have to pay to a group of employed payroll service professionals.

• Factors for considering a payroll service

To free up an entangled array of employee accounts and to find back the peace of mind, there are certain factors to be considered by a hirer before selecting a payroll service. The top of the line payroll systems shall:

- Find out first if you at all need a payroll service that needs to be outsourced.

- Revise, understand and confirm before executing the process.

- Check if the service can be provided online and whether a direct deposit would do you any good.

But if such a payroll service provider seems far from reality, a visit to Respond shall shake your mindset; apart from offering efficient payroll systems and professionals, there is a ton of info regarding consultants who specialize in handling large payroll accounts. And one last thing – it’s not in vain that the other three million came searching here and left with ear-to-ear grins.

Introduction to payroll administration

• What is payroll administration?

A term that takes under its jurisdiction every procedure directly and/or remotely connected to paying the employees in an organization, payroll administration also tracks the working hours of the employees (individually and collectively) so that no one stays underpaid. The other responsibilities payroll administration takes up are:

• Calculating properly all the payable taxes and social security.

• Ensuring the withholding and processing of all the payable taxes and social security correctly.

• Calculating and processing other related deductions, e.g. incentives, commissions, bonuses, overtimes and anything else stated by the employment or the labor laws.

• At times, processing of payments to outsourced work and handling all the problematic issues that might show up while processing, tax filing being a major one.

Does that sound a tough job? Not exactly, when it is about a few employees; the problem shows up when it comes to process the data for a large number of workers. While in the first case, the input of the owner of a company or the accountant proves somewhat sufficient; payroll administration shows its hairy and scary face when it requires keeping track for a large sized establishment. Only a well-planned and efficient payroll administration system shall then allow maintaining the pace.

But then again, it requires creating an altogether separate department run by payroll accountants and headed by the HR, which is again a recurring cost for the owner. There is software alright to get the task accomplished; but often, it required creating an unique payroll system tailored to a company’s unique requirements. Now, that’s again the precious dollars flowing out!

This is where the payroll service outsourcing concept comes into play; outsourcing payroll administration to companies specializing in this job also solves problems like providing management consultancies as well as HR (human resource) assistance – often tailored to meet the needs of the service buyer.

• Procedure of outsourced payroll service

Everything in this world follows a procedure and outsourced payroll administration is no exception either; to help streamlining and running efficiently a business, to free-up tangles related to employee accounts and most of all, to offer peace of mind to the hirer, a company specializing in payroll administration shall:

- Scrutinize if a business needs the payroll service to be outsourced at all.

- Understand and revise the hirer’s needs regarding payroll service if the results are affirmative.

- Check if the service can be provided online and whether a direct deposit is required.

But if such a payroll administration service provider seems like an Utopian concept, a visit to Respond may well bring you back into reality; not only that, you shall find a lot more of them to help you out regarding the HR issues, getting you the professional payroll accountants, tons of info regarding tax filing as well as every intricate detail on handling the employee accounts. At least, it proved so for the lucky three million or so.

Introduction to CPA's

CPA: Accountants who have passed certain examinations and met all other statutory and licensing requirements as per the requirements of the United States federal law and has earned the certification to operate in one of those states.

Why need CPA?

First, let’s see if anything mentioned underneath is one of your current concerns:

- A professional help with tax returns.

- A professional approach to tax strategies.

- Would like to make an investment but no advice from friends, colleagues and relatives seems good enough?
Or,
- Do you need running an audit for your existing business operations?

If your answer is yes to one or more of the questions aforementioned, then a CPA is what you must be on the hunt for. The answer to why comes automatically.

Advantages of hiring CPA

Let us have a look at the common mindset of people as well as certain self-proven facts.

- Several types of tax benefits exist for individual taxpayers. These include IRA contributions, exclusion of taxes from the sale of one’s primary residence, health savings accounts – the list is virtually endless.

- More than half of the population prefers completing the taxes on their own.

- Doing so makes them fail to take certain advantages in the form of tax benefits.

Hiring a CPA or similarly qualified accountants allow a taxpayer to know what benefits or relief he is eligible for; saves extra working hours and most of all, from being on the wrong side of the law.

But then again, not all of such accountants or CPA’s can be relied upon with a word of mouth; for that, one must select a CPA from a source that ensures you get the best value for your money. That’s what Respond is exactly, the meeting point for them all who are losing traction on the financial highway. This is how over three million people gained back control on heir finances; hope to see you joining the happy team soon.