Human Resources Best Practices Guide by Staff One - HTML preview

THE PITFALLS OF PAYROLL PROCESSING

Employees look forward to payday.  When it comes to payroll, you can’t just wing it; it has to be right, every time. Payroll processing is a necessary business practice that costs time and money, while exposing the business owner and the company to corporate and personal liability, and producing no profit in exchange.

From processing regular and overtime wages to correctly accruing Paid Time Off (PTO), payroll is a minefield of opportunities to make a mistake.  Record-keeping requirements, Wage and Hour compliance, regulatory reporting, and state, federal and local tax compliance are fraught with hidden and costly accounting responsibilities and risks.

Simply keeping abreast of changing regulations and fielding employees’ questions regarding compensation, PTO, deductions and overtime can be an overwhelming task. Add in garnishments, child support orders and payroll tax deposits, and payroll administration can strike fear into the hearts of office managers and business owners alike.

Working with a Professional Employer Organization (PEO) gives you access to a team of American Payroll Association (APA) certified professionals.  The PEO assumes responsibility for processing payroll and calculating tax reports, using state-of-the-art data processing and integrated software systems.  In addition, the PEO may also provide employee earnings statements and management reports for your company.  The beauty of using a PEO is that it not only dramatically reduces your liability and exposure; it also gives you the convenience of having one accounting item per pay period to cover all employment costs.

The following list details many of the things a PEO can handle, leaving you to focus on running and growing your business:

• Administer employee payroll processing: issue payroll checks, process changes in payroll status, and offer direct deposit to employees
• Administer withholding and filing of quarterly reports, W-2 and W-4 preparation, payroll tax calculation and remittance, and assume liability for FICA and Unemployment taxes
• Provide secure internet-based payroll entry and reports
• Provide vacation/sick/personal time off accrual management
• Provide online self-service employee payroll information
• Collect and apply deductions for all benefit programs
• Administer employee garnished wage calculations and remittance
• Provide Federal Wage and Hour compliance recommendations
• Administer new-hire and termination reporting to governmental agencies
• Provide comprehensive management reports: check reports, labor distribution, detail by employee, departmental reports, worksheets, etc.
• Provide certified payrolls (if necessary)

Isn’t it time you put your focus back on your core business, and outsourced your non-profit-producing tasks like payroll administration to a team of experts?