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Payroll services – FAQs

by Donny Stock

Payroll services are essential and beneficial for all companies. These service companies streamline the payroll processes and provide the client’s employees with effective and reliable payment services. The key reason why most companies opt for payroll services is the exceptional legal compliance and accountability that they ensure. Without the presence of a payroll service, it will be difficult for the company to run business smoothly. Tracking employee time and attendance, salaries, tax preparations, and compliances can become too much for the company to handle without the presence of a reputed Phoenix payroll services company. 

What is a payroll service company?

A payroll service company provides professional services like payment of employees’ salary on time, onboarding, maintaining payroll records, and also termination formalities. A payroll service branch can be created within your own company, but that will be expensive and involve other factors. This is the reason why companies are outsourcing such activities to payroll service companies or agencies. They help in the smooth running of your business by providing financial management solutions. 

What tasks are to be outsourced to a payroll service company?

Some of the tasks outsourced to the payroll services include:

  • Payment of employee salaries
  • Employee time and attendance
  • Leave management
  • New hire reporting
  • Payroll tax statements
  • Worker’s compensation
  • Tax forms and payroll tax filings.
  • Federal, state, and local year-end taxes 
  • Tax payments, including social security and state unemployment insurance
  • Employee benefits and deductions
  • Maintain payroll records

What is the best interval to pay my employees?

The payment schedule depends on the company and what suits its business model. Many employees prefer getting weekly salaries; however, this is a bit expensive for the company. Many industries, like retail chains and construction companies like to pay their employees on a weekly basis. Monthly payroll processing is usually seen in most companies.

What tax reports do you file?

Businesses need to file federal taxes, state taxes, and local taxes. They also need to file an unemployment insurance tax which is taken care of by payroll services. So broadly speaking, payroll service companies file the following forms for you – Form 940, Form 941, Form W-2, Form W-3, Form 1096, and Form 1099. 

Companies should choose the option of outsourcing their human resource tasks like payroll, as these payroll services will ensure you comply with all federal and state tax requirements. They will also ensure you save time, save money, and reduce costs. The payroll service companies also provide dashboards and intelligence reports that provide a lot of insight into employee matters. Hiring the best payroll services will ensure to improve your employee experience and help run your business efficiently and smoothly. 

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