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.

IRS and Telephone tax refund

• What is telephone tax refund?

Think the telephone-tax refund as a payment that occurs only once on a person’s previous year’s federal IT return. The refund returns all the federal excise tax collected on long-distance tele-services. Even bundled services come within the jurisdictions of this refund.

• Why is the government refunding these taxes?

The decisions of the federal court can be held responsible for this change; certain revisions made of recent by the federal court excluded this tax from the jurisdictions of long-distance telephone services as well as from the telephone services offering a flat rate or even those that come with Internet and VoIP. However, the local services are not included into the refund plan.

• What is the procedure to get the tele-tax refund?

For filing an amended tele-tax return, a special short form is to be filled first; it’s the Form 1040EZ-T. Any individual in the low-income group as well as senior citizens can opt for this tax return on telephone bills paid till the previous year. The process is as follows:

• File Form 1040X. Requesting for the refund of the federal telephone excise tax, do the following:

 Fill in the top portion of the form through line B,
 Write the amount to be requested on Line 15 and add “FTET” to the dotted line below,
 In Part II, the Explanation of Changes, write “Federal Telephone Excise Tax”,
 Add your signature and send it to the IRS Processing Center of your State. You can find the address on the Form’s Instruction page itself.

One point to be noted is that if you are requesting for a refund of the paid telephone excise taxes than that of the standard amount, you also need to fill Form 8913, Credit for Federal Telephone Excise Tax Paid. Multiple changes to 2006-tax return are to be followed by filling the form according to the Instructions listed.

The request for standard amount is optional and the easiest way for requesting a refund. A family of four including two dependant children can be eligible for a maximum refund of $60. If you do not want to use the standard amount, then you must figure the refund with the original amount of tax that you’ve paid. Sometimes it results to a much bigger refund. Fill up the Form 8913 and attach the amended returns, if you are looking for this option. It is not necessary to show all the bills for the entire 41-month period, i.e. from March 2003 to July 2006, but you must have sufficient records to back up the refund amount that you are requesting.

Since the business units and non-profit organizations cannot avail the standard amount, they must fill out Form 8913 and request their refund basing on their actual tax paid. This form needs to be attached with Form 1120, 1065, 11205 or 1041 for business organizations. Non Profit Organizations should attach this same form with Form 990-T.


• Who is eligible for telephone tax refund?

Generally, any person or a business unit or a non-profit organization that had paid the tax for long distance calls billed in between 28th February, 2003 to 1st August, 2006 are eligible to request for the refund. It is open to everyone who cleared taxes for landline, VOIP (Voice Over Internet Protocol), or wireless services. But then again, to hear it from the horse’s mouth, no place can be better than Respond; find the right people here who can guide you throughout the process to earn you back the lost dollars, just like the other three million did.

Advantages of outsourcing Accounting services

Ask any firm providing accounting services or tax preparation and they shall tell you about the benefits of outsourcing the jobs. The prime reasons behind bookkeeping firms preferring it this way are:

• Reduced labor costs

Since outsourcing involves the third world countries (chiefly, India and China where every dollar is multiplied several times in their currency), the amount to be paid to a couple of accountants in the first world country can remunerate a large team. These people are also very much proficient in their own fields; hence, it’s less for more.

• Payroll

Since the work is outsourced, the people doing them doesn’t require being on the payroll of the company that is outsourcing. This takes away the burden of granting employee benefits and the related legal responsibilities to the company.

• Lower fixed costs

A bigger benefit for the outsourcing bookkeeping firms comes in the form of cost advantages; it saves big time on the costs that would have been spent otherwise on the operations and the overheads. Investment on an infrastructure can thus be ruled out including buying the expensive software and the respective licenses, employee training and support; all these add up to big time financial benefits for the outsourcing accounting firms.


With all that understood, firms into accountancy need to find a service provider who is reliable and costs less. That way, Respond can help; with a roster that’s virtually endless and a customer base exceeding the three million mark, there is a service provider awaiting every accountancy firm of every budget and every type of accountancy related job; all that is required now are just a few clicks of the mouse.

Receive your refund faster with direct deposit

Desperately need your refund?
Get your refund deposited directly into your account. It has become a normal trend for tax payers to receive their federal tax refunds directly deposited into their bank account.

In the year 2005 more than 50 million people got their federal tax refunds deposited directly into their account.
It is a very fast secure and easy process. It is very much beneficial to the senior citizens and physically handicapped persons.
• Secured mode of payment - As there is no chance of the check getting lost in the middle and also the chance of undelivered mails are eliminated, the direct deposit of the federal tax refund into the bank account is the most secured way of payment. It is the best guard against stolen tax refund.
• Convenience - There is no hassle of going to the bank and depositing a tax refund check.
No need to stand in queue. Easy for the Senior citizens and physically handicapped tax payers.

To get more information you can login in to the IRS website for online resources.