Dealing with payroll service providers is one of the most complicated jobs facing many business owners all over the world, especially in an organization with thousands of employees.
Apart from ensuring that all your workers are paid in the correct amount and on time, payroll involves many other things such as state and federal taxes from employees, withholding applicable local as well as sick pay.
The good news is that there are reliable firms out there that offer topnotch payroll services, helping you save a lot of time from preparing payrolls and focus on the most important things in your business.
How payroll services work
It mainly involves paying a firm to take care of various payroll services independently. When you subscribe to a payroll service, you must setup an account and list the name of all your employees, W-4 form and pay rate. Apart from providing company tax details. When it is time to pay employees, you are supposed to submit hours of each of your worker for the period and money will be transferred from your bank to the payroll account.
Then, employees are paid through direct deposits or through a check and you will receive management report.
That is only the basic service offered by a payroll firm. Online payment solutions can also do more complex jobs such as processing 1099 forms and W-2 forms as well as issuing them. This ensures that the taxes are paid on time. Other functions include managing employee benefit, providing electronic signatures, handling direct deposit and so much more.
Payroll service costs
The basic cost for a payroll service is around $0.80 to $2.00 per check. This fee is inclusive of the base account fee. Advanced payroll services, such as tax filing and direct deposit can cost around $4 and $9 per check. Payroll service providers, such as Paychex and ADP, charge anywhere around $3 per period for basic services for each check.
A firm that has around 30 employees and uses either Intuit or ADP to manage all of its payroll tasks, might pay around $250 and $1,500 per month. This definitely a wide range but the amount will depend a lot on how many payroll service items you have them do for you. With more tax filing for quarterlies, and year end items your cost will be towards the higher end.
You can also employ an accountant to carry out the payroll tasks. A business that has less than ten workers might hire an accountant and pay him or her around $250 or less a month to do the job. Many small businesses would probably be better off by having an accountant in their area do their payroll processing, because this firm/person would be more familiar with the transactions going on in the business come tax time.
Signing up with firms such as Intuit and ADP that work with computer programs cost somewhere between $75 and $250 per year.
Here are some examples of what customers have paid ADP and Intuit for services. These prices vary so widely, because both companies offer discounts initially to sign up and the scope of what they offer could be quite different for each business.
One retailer from Massachusetts paid 50 dollars base and 35 dollars for yearend filings per worker for full services. Another business entity from Colorado paid 13 dollars per month per worker for tax filing, full service payroll and direct deposit. An insurance firm in Michigan with five employees paid 45 dollars a month for businesses’ payroll services. A consulting company in California with less than ten employees paid 31 dollars a month to their payroll services company for tax payments processing, full payroll, yearend tax reports and W-2 and 1099 services.
Please contact us to see if we can help you out with your payroll processing in the Austin, Texas area.