This is a guest post from Marshall Davis. Marshall runs Business Service Reviews, a website dedicated to showing entrepreneurs available online solutions to help them be more productive, including reviews of online payroll services that make payday a simple affair.
Every company has employees, and those employees tend to like to get paid. Unless the proprietor happens to be an accountant, this can be a source of great frustration. There are payroll taxes to be calculated and paid, while vacation time and other deductions also have to be factored in. For the average entrepreneur, this can be a time consuming task rife with opportunities to make an error, should they attempt this on their own. Fortunately, there is a very affordable, easy to use way to make running payroll a breeze – online payroll services.
Online Payroll Is Easy To Use
An online payroll service greatly simplifies the process of paying employees by giving the business owner access to a web-based system to handle all the complicated tasks normally associated with cutting paychecks. After a one-time setup to enter all the pertinent company and employee information, every pay period the business owner, or designated employee, simply logs into their account via a secure website and enters information for that pay period. There is complete accounting software integration so that the company books are kept up-to-date with a minimum of fuss.
The system automatically handles all complicated tax calculations, and other deductions, so that the business owner doesn’t need an accounting degree to ensure the tax man is satisfied. Depending on the level of service the proprietor desires, the online payroll provider will either handle payment of federal and state (if required) taxes, or will handle all calculations, fill out the required forms, and alert the owner when taxes are due. Either way, tax calculations are guaranteed to be accurate as tax tables are updated as required by the service provider.
Employees are paid either via paper check or direct deposit, and independent contractors can also be taken care of, if necessary. There is even a secure website for employees to log into so that they can have 24/7 access to all their previous pay stubs and tax information, minimizing the need for them to hassle their boss for this.
Online Payroll Options
There are two options when it comes to online payroll services – the DIY approach and the full-service alternative. Either choice gives the business owner the ability to quickly, and accurately, pay employees. The difference lies in how federal and state taxes are handled. The DIY approach leaves the actual payment up to the company owner, while the full-service providers handle this process, giving the owner one less thing to deal with.
With plans starting at around a dollar a day for companies with just a hand full of employees, DIY services handle the entire payroll calculation process, up to cutting the actual paychecks and filing taxes. Each payday, the appropriate information (hours worked, etc.) is entered securely online for each employee, and all the heavy lifting is handled automatically. However, it is up to the business owner to print employee checks, but there is a direct deposit option that does away with this extra step. Also, the proprietor will need to set aside money to handle federal and state payroll taxes, and will have to pay these at the appropriate time. This can be done electronically, which makes the entire process a breeze since the necessary calculations were previously completed.
Starting at around $100 a month, a full-service, online payroll solution handles everything related to paying employees. All the owner needs to do is enter the required employee information each pay period, and the rest is handled for them. This includes the cutting of employee checks, or paying via direct deposit, year end tax documentation, and the withdrawal of tax funds. Federal and state payroll taxes are filed and paid without any interaction on the part of the company owner. This is about as hands-off as it gets when it comes to paying employees.
Is Online Payroll Right For You?
Small business owners tend to be very time limited and need to spend there available energy on running, and growing, their operation. Why would they want to spend needless hours manually handling complicated payroll calculations when there are affordable, online alternatives? Even companies where the proprietor is the only employee still can benefit from using an online payroll solution. After all, taxes still must be calculated and paychecks still have to be cut. Add on additional employees and it is easy to see why handling pay day online is the best solution for just about any entrepreneur.