A Buying Guide For Companies Opting For A Payroll Service
You may want to know what an online payroll service is, what it can do and how to choose the best system. If you have idea on what you need, you can read through our best picks page to see which ones we recommend. We will also give you a comprehensive list on what works best for you.
Defining Online Payroll Service
Our online payroll service run in the cloud. It will require no software to install and maintain. Many businesses can run the payroll system from wherever they are. It is used to process payroll for full-time and part-time employees as well as those on contract and freelance. This online payroll includes different services such as:
- Payroll processing: The system will automatically compute how much each employee will be paid for each period. It will note down overtime, taxes, holiday pay, shift differentials, social security and other benefit deductions, before payments can be made to concerned employees by check or direct deposit.
- Pay and file payroll taxes: The system can pay tax withholdings to the designated government agency, file quarterly payroll tax reports and withhold employee taxes. When the year ends, employees are provided with W-2 and 1099 forms.
- New hire reporting: It’s a payroll service that informs new hires to the government on your behalf.
- Paid-time-off Management: The service provides paid time off by reviewing vacation and sick leaves employees have earned and how much they have utilized.
- Mobile access: Many systems offer mobile apps that permit them to manage and run payroll from tablets or smartphones.
- Payroll reports: Most systems provide detailed labor and wage reports that furnish a deeper view at how a business works.
Benefits and Downsides
One great benefit an online payroll service can provide is having all calculations, tax payments, year-end tax forms completed right before you. The existing system can make payroll run when needed.
However, the downside of the system will cost you more than using a regular software or handling it on your own. What makes it also negative is having your payroll system entrusted to a provider. If mistakes are made, it will create a huge impact of facing angry employees or a fine from the government. Also, good Internet connection is required to make the payroll service possibly working for your needs.