Payroll Software, Payroll Services, Online Payroll - What's the Difference? Which is Best?
By Jennifer A. Thieme
Selecting the right payroll solution is an important decision for all business owners. The wrong payroll solution can be expensive not only in terms of money, but in productivity, which translates back to morale, which translates back to money. When selecting payroll solutions, carefully consider your resources. Here are brief descriptions of each type, and the resources you need to implement them:
Payroll Software - Payroll within Accounting Software
When using payroll software, or when running payroll within your accounting software, your company runs payroll "in-house." Your company is responsible for all upgrades to the software, including tax table and tax rate changes. This option provides a high level of control, which some clients prefer. Generating checks, withholding taxes, tax return filings, and payroll tax payments are the main duties that must be carried out in a timely manner by somebody within the business. Electronic services, such as direct deposit, may or may not be available through the software.
To run payroll in this manner, you need a person who is not only familiar with payroll laws, but also familiar with the accounting side of payroll. Payroll is confusing, even daunting, so don’t expect a $9 an hour clerk to set up and run your payroll.
Speaking of payroll set-up: be certain your software provides excellent customer support during the set-up process. Depending on the number of checks run in the current year, payroll set-up can be challenging, to put it mildly.
If you have many checks to print, consider buying a printer dedicated exclusively for this purpose (it can also be used to print accounts payable checks). Contact your check vendor for more information about ordering the correct type of check for your printer.
In terms of the monthly expense, this option will probably run between the next two options.
Payroll Services
When using a payroll service, your company outsources payroll duties entirely. You are in contact with the payroll service as often as you run payroll (for example, every week or every two weeks), telling the service how many hours each employee worked, informing the service of new or terminated employees, or asking any other questions. The payroll service will then generate and deliver checks; withhold taxes; make tax payments; file tax returns; and compute, distribute, and file year-end forms. Electronic services are available. Human resource (HR) services are sometimes available. Usually you can find a payroll service in close proximity to your business.
This is a very simple option. A phone call to the payroll service takes care of most payroll duties. This is a good option for those who do not want to take care of payroll duties themselves, and who do have other resources (such as time or personel) to run payroll in some other manner. Even the set-up should be trouble free, since the payroll service will handle it.
This option is the most expensive of the three options.
Online Payroll - Internet Payroll
Online payroll, also known as Internet payroll, can be customized to suit the client’s needs. For clients who wish the ease of a payroll service, wanting only to make a phone call each payroll period with the service taking care of everything else, online payroll can provide that. For clients who prefer the control that payroll software brings, wanting to run checks and take care of other duties "in-house," online payroll can provide that as well. Even something in between these two options is possible. The level of service varies from one provider to another. Even within a single provider there can be varying levels of service, depending on what clients need. Same with the set-up; the online service can handle it all, or the client can handle it all, or there can be a mix of both parties taking care of it.
Clients are not responsible for maintaining tax tables or updating software when using an online payroll provider. Electronic services, such as direct deposit, electronic tax payments, and electronic tax returns, are available. It is not necessary to find an online payroll provider in close proximity to your business, since you can both access the same data through the Internet.
This is a good solution for those who are already comfortable with the concept of online banking. Payroll data is stored on secure servers, and transmitted with a high degree of encryption, so it is very safe.
Regardless of how this solution is customized, this option is most likely the least expensive of the three options.
Final Thoughts
Take some time to shop around and compare payroll solutions. You will be better able to make the right choice if you carefully consider the time, money, and personel you can devote to payroll tasks.
Jennifer A. Thieme invites you to contact her for a free payroll quote. She offers very affordable online payroll services that can be customized to suit your needs. Her services also include QuickBooks problem solving, general bookkeeping, and income tax preparation.
She’s the owner of Solid Rock Accounting Services and has been in the bookkeeping, income tax, and payroll business for nine years. She’s a Certified QuickBooks Pro Advisor, and a Registered Tax Preparer. Visit her link above for contact information.
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Payroll Service, Changing Providers -Chapter One: Reasons to Change Providers
By Charles Read
Why change your payroll provider?
Service Stinks. Payroll service is all about service. If you don't perceive that your business receives good service then you probably aren't getting good service. Payroll service providers know that their level of service has to be extremely high. Are you getting what you were promised? Too often salespeople promise what production can't deliver. Are your problems addressed, and more importantly solved, immediately. If your account has been overdrafted and you don't get your money back in two business days or less you are not getting good service.
Cost too High. Are you paying more than you should? How do you tell? Get some quotes. There are a number of free quote services on line. Google "Payroll quotes" and go from there. Many times your payroll company will negotiate with you if you feel the price is too high, but not always. Remember also that the major payroll companies have a revenue maximization process. They will quote you a price to get your business. There used to be right on the Paychex contract a line called WIT for the salesperson to fill in. WIT stood for "Whatever it Takes". The salesperson would give any concession to get the payroll business. Then the local office would stealthily increase the price every payroll or every few payrolls until it reached the maximum level the local office thought it could sustain.
The other thing a lot of payroll companies do is quote you prices but don't tell you what is not included in that price. Things like a cost for: each hire, each termination, each report, each new report, each non standard report, each W2, each W2 reprint, tax service, phone entry, year end reports, unnecessary CDs, access fees, monthly fees and so on. Also if they give you a "discount" to get your business it can easily vanish.
Be careful of quotes to make sure everything is in them and your price is guaranteed for a period of time. Then check it every pay period to make sure it is what you expect.
Too many errors. Errors are inevitable when humans handle the payroll. If your service is making too many then you may choose to leave what ever the cost. Errors cost you in time and morale if not in actual dollars. Does your payroll provider try to fix blame for an error or do they just fix it. They should just fix it! If it really is your error and you admit it, expect a fee. If you think it is their problem and say so, they should take responsibility regardless of what they think. Does your payroll provider call you if they see something strange or do they just do it their way? If they do it their way you know they are not concerned enough about you to make a phone call or send an email.
Every employee of every client looks at payroll and needs for it to be perfect. It won't be, but it needs to be as close as possible
No help with the IRS. Does your payroll service when presented with a letter from the IRS tell you to call your CPA? Shame on them. The IRS will send you letters. The IRS makes mistakes. The IRS will not fix their mistakes unless and until you can prove to them they are wrong. Many times even if you made the mistake a good negotiator can get the IRS to remove the penalties and sometimes the interest. I can't tell you how many penalties in the last fifteen years I have had abated simply by contacting the IRS in a professional manner and knowing what to say and how to say it. Your payroll service provider should be an expert in getting penalties abated. Your CPA will probably not be a payroll tax expert. Your payroll service provider should have CPAs on staff, that you can talk with to solve IRS and State tax problems.
Lost in the shuffle. Do you talk to a different person every time you call your payroll service provider? Do you get passed from extension to extension to extension until you end up with voice mail that is not returned? When you call for help do you get a voice mail system and not a person? When you call for help do you reach India? If you can't talk to live people, who can solve your problems and do it in English, then you are lost in the shuffle. Enough said!
Check out
Payroll Service, Changing Providers. Chapter Two. What Should you Look for in a New Provider?
And
Payroll Service, Changing Providers. Chapter Three, What Should Happen When We Change Payroll Providers?
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years the last fifteen in private practice. Mr. Read is the author of �How to Start a New Business� and is the owner http://www.PayrollonaBudget.com a paperless payroll company, http://www.CustomPayroll.com a full service payroll service provider and RMARK Financial Services a small business tax, consulting and bookkeeping firm. See an excerpt of Mr. Read�s interviews from William Shatners �Heartbeat of America� television show on the websites linked above.
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Software Review: Top Business Payroll Software
By Brian Ernst
Living in the digital era, manually managing your payroll is unnecessary and inefficient. There are numerous payroll software solutions available to assist business owners in this particular task. These software solutions are highly specialized. They do not have unnecessary features and are also remarkably affordable. To help you with your payroll concerns, we compiled a list of the best payroll services that you can utilize for your business.
Payroll Software Review
Small business payroll software solutions provide you with different options that range from expensive and extensive in-house business payroll software, to inexpensive yet reliable specialized online services. The top payroll software products are as follows:
1. QuickBooks - This is an accounting and payroll software solution that is simple, efficient, and has multiple payroll options. Priced around $100 to $300 per year, this software is a wise choice for small business owners who are looking for an extensive payroll service. QuickBooks also offers Online Payroll services at $29.95 a month.
2. SurePayroll - This is an online payroll service that is offered at $45 per month. It incorporates well with other reputed desktop accounting tools. It can also efficiently file your tax returns. SurePayroll is also available to represent you before the IRS if issues ever arise.
3. XpressPayroll - This is an easy-to-use and convenient small business-oriented online payroll service. It processes payroll easily. It can also file taxes, create reports, as well as process direct deposit payments.
4. Paychex's Online Payroll - This is an extensive set of web-based business payroll services that include complex and simple features for payroll management. With this tool, you can manage the employees' compensations and 401(k) more efficiently. Paychex's Online Payroll has more than eight years of expertise in this field.
5. PayCycle, Inc. - This company provides an online business payroll service that is currently utilized by 50,000 small businesses in different industries. This service covers employee pre-tax contributions as well as employer health savings account distributions. It also has electronic filing feature for IRS Form 944.
6. ADP (Automatic Data Processing) Inc. - This company provides data-processing services to midsize and enterprise markets. Its small business payroll solution called EasyPay provides various types of services, which include direct deposit payments, payroll envelopes preparation, as well as depositing, filing, and reporting of payroll taxes.
7. Peachtree - This is a complete accounting package that includes a small business payroll module. The software can easily and efficiently calculate your payroll, deliver checks, process direct deposits, and file federal, state, and local taxes.
8. E-chx Inc. - This is an online payroll service that currently gains immense popularity. It specializes in various industries, including restaurant, retail, legal, and accounting. In addition, the company offers its users a guarantee of a two-hour callback.
9. PayUSA Inc. - This company has more than 40 years of expertise in the industry. It prides itself with the convenience and speed of its "Payroll in a Flash" trademark service.
10. Wells Fargo Business Payroll Services - This is a convenient payroll service that is capable of printing checks and processing deposits. It can also deal with tax deposits or can send W-2 and 1099 forms to your employees.
Tips On Choosing Business Payroll Software
Price is not the only factor that you need to consider when purchasing or subscribing to a small business payroll service. The expertise of the company and their ability to represent you in front of the IRS in difficult situations should also be taken into consideration. You may need to check references and reviews regarding the company's services to make sure that its payroll service suits your business needs and preferences.
The following are the essential features you need to take into account when choosing business payroll software:
- Automatic tax calculations
- Handling of federal forms
- Customization options
- Security
- Simplicity and convenience
- Check printing
- Generation of business reports
- Direct deposit
- Technical support
Remember you do not need a costly accounting package if you are just a start-up company. On the other hand, relying on small business payroll software that is less expensive and lacks major features can also be useless.
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ACH Makes Financial Transactions Easier for Small Business Owners
By Marcie Haitema
Automated Clearinghouse (ACH) transactions and benefits remain largely unknown and misunderstood for most consumers and businesses. The misunderstanding stems from the fact that the ACH has multiple uses and applications. It can be both a credit and debit transaction. It can be used by both consumers and businesses to pay an obligation (ACH credit transaction). Or, it can be used to receive payment by using an ACH debit instruction.
What is ACH?
The ACH, and the association that set its rules and enforces compliance-The National Association of Automated Clearinghouse (NACHA)- was formed more than 30 years ago as a replacement for the paper check.
Direct deposit of payroll was one of its first payment types and is still one of the most popular (now considered a native ACH payment) types of ACH transactions due to the ease, convenience and safety provided to both employers and employees.
As time marched on, businesses, governments and consumers increasingly embraced ACH payments because they are cost-effective, reliable and efficient to initiate and receive. Federal, state and local authorities' use of the ACH is evidence of its ever-growing popularity to collect taxes and remit refunds. Online bill payments are predominately accomplished using the ACH network. Consumer-oriented businesses (e.g., credit card and mortgage companies) use the ACH to convert checks to settle consumer debts. Retailers, such as Wal-mart, convert checks written at the point-of-sale to the ACH, often surprising consumers when the cashier actually hands back their voided check.
How can small businesses benefit by using the ACH?
The simplest thing to do is to use direct deposit of payroll to pay employees, be it one employee or more. An abundance of companies exist to service the direct deposit needs of small businesses. Their services include calculating and filing all the tax and withholding obligations associated with payroll. ADP, PayChex and Intuit come to mind first, but there are others.
Accounting software providers, such as Peachtree and QuickBooks, also offer direct deposit of payroll. Often their direct deposit service is an add-on to the basic accounting package or requires use of a premium version (at an additional cost).
Financial institutions also offer direct deposit of payroll that automatically link to accounting software and provide the same electronic payroll services as an ADP or PayChex, often at a reduced cost. Banks also offer other ACH services. Ask your bank if they have an online bill payment tool for small businesses to use the ACH to pay vendors and other obligors electronically. It's easy to use and, again, integrates with common accounting software packages.
Most online bill payment providers make their services accessible via the mobile phone, in addition to the PC, so it is getting even easier and more convenient to pay bills and employees every day. Intuit, for example, recently announced a mobile app for small businesses.
Make the management of your business simpler by using the ACH payment system. Eliminate the time spent on calculating what is owed to employees and vendors by leveraging the tried and true, safe and sound ACH payment tools available to small businesses today. Then focus on what is really important: making your business successful.
Marcie J. Haitema is a leading expert in the areas of e-banking, automated clearinghouse (ACH) transactions, electronic funds transfer services (EFTS), treasury solutions, payment conversions and mobile payments. (913) 220-7308 // [http://www.marciehaitema.com]
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Payroll Taxes Small Business
By Tyler Wells
Hiring your business's first employee is an important milestone for many small businesses; considered by the entrepreneur to be a sign of growth and prosperity. Usually unanticipated is that it is a harbinger of countless frustrating hours spent working on payroll and figuring out your payroll tax obligation.
Who Pays Payroll Taxes, Me or My Employee?
Payroll obligations and taxes come in two different varieties: those that your employee pays but that you are responsible for withholding and those that you pay and are responsible for withholding. The key here is that, no matter what, you as the employer are responsible (liable) for the proper collecting and submitting of payroll taxes and that responsibility is a serious one. Payroll taxes cannot be discharged in bankruptcy and your Uncle Sam is the last bill collector that you would every want to cross. So be very careful in learning your responsibilities and making sure that they are fully met!
What Payroll Taxes Am I Responsible For?
- Federal Withholding is for most of us the biggest single deduction from the paycheck. Through a Form W-4 the employee informs the employer how much they must have withheld from each paycheck. It is the employer's responsibility to use the W-4 to calculate how much should be deducted from the employee's check and be remitted to the federal government.
- FICA stands for Federal Insurance Contributions Act tax and basically it means Social Security and Medicare. The theory behind these taxes is that they are shared half and half by the employer and employee; 6.2% of wages for social security and 1.45% for Medicare. In addition, wages subject to Social Security (but not Medicare) taxes are limited by a Social Security Wage Base which is $106,800 for 2010 but is adjusted annually for inflation. This means that the maximum annual amount for Social Security in 2010 is $6,621.10 each for employer and employee.
- FUTA stands for Federal Unemployment Tax Act and is a tax paid by the employer; usually.8% of the first $7,000 of income.
- State and Local Taxes, as the name implies, vary greatly from state to state. Generally, each state will charge SUTA, or state unemployment, and mandate a withholding for state taxes.
Who do I have to pay payroll taxes on?
Payroll is a pain in the ass. It is complicated, time consuming, creates a potentially devastating liability and causes cash flow issues for the company. So why not just get around it? In the past it has been fashionable to characterize people who do work for you as independent contractors, pay them the cash and just issue an 1099-MISC at the end of the year. Not only have you freed up loads of valuable time that can be put to a productive use (for example, a three martini lunch) but you've also just saved yourself the FUTA and FICA taxes that you would normally be responsible for. The employee, er, independent contractor is also happy, because they get to take home the whole check without all those pesky taxes and withholdings taken from their check. Win-win, right? Well guess again, Buckaroo. The IRS has long been on to that trick and has lately launched a campaign against employers, er, contractors, that fail to properly classify those whom they hire.�
Who Is an Independent Contractor?
There are no bright lines or safe harbors to determine when it is safe to actually consider a worker an independent contractor or employee, but the spirit has to do with control over the worker's time and services. Do you tell the worker when and where to be? Do you either demand exclusivity of their services, or have them work certain hours so that it would be difficult to work for someone else? Have you been paying them a consistent amount, in consistent intervals, over a protracted period of time? All are factors that, in the eyes of the IRS, may mean that your worker is actually an employee masquerading as an independent contractor.
All this is not to say that you should immediately convert that independent contractor into an employee, but you do need to be aware of the IRS position on this and to be wary of the potential consequences should you get audited.
What Compensation Is Subject to Employment Tax?
Compensation to employees can come in various forms and be called many different names. Whether you call it wages, salary, commissions, bonuses or something else really is irrelevant as far as determining employment taxes due; the rule of thumb is that is someone is being compensated for their time or their efforts then it is probably subject to employment tax. Some specific exceptions carved out by law include: vacation pay, reimbursement of expenses, employee benefits, and prizes or gifts.�
How Often Do I make Payments?
This depends entirely on how big your business is and how many employees are on your payroll. Very small firms with only one employee could possibly be required to pay quarterly but most employers pay either semi-weekly or monthly. Publication 15 (download on the IRS website) is your guide for all things related to employees, and can help you determine how often you will need to remit payments to the IRS�
How do I get Help!
If all this has your eyes rolling and your palms sweating then don't despair, many entrepreneurs choose to outsource the drudgery that is payroll to specialists so that they can concentrate on what is really important, running a successful business. There are three main options, based upon your willingness to pay and the complexity of your payroll.
- Using special software like Quickbooks Payroll - no, software can't actually do the job for you but it can significantly save time and hassle by automatizing the process. The best packages also provide support so you have a resource when the inevitable oddball transaction comes up.
- Hiring an accounting firm - most accounting firms (like me!) that specialize in working with entrepreneurs will also have a payroll outsourcing function that can take most of the dirty work off your hands. These usually specialize in small and medium size enterprises, under 100 employees.
- Hiring a payroll outsourcing firm - Paychex is the big dog on this block with almost 40 years of experience handling payroll for medium and larger sized businesses. Generally the most expensive, and often the most complete, option available
As the WebCPA and the author of WebBizFinance.com [http://WebBizFinance.com], my job is to help you grow your business and solve your business finance and accounting problems! Please visit me at WebBizFinance.com [http://www.webbizfinance.com/2010/10/payroll-taxes-small-business/]
Tyler Wells, CPA
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Residential Real Estate Payroll Tax
By Blake Dale Ratcliff
Payroll taxes due to local, state, and federal governments are a major interest for business. For the principal and signing authorities in particular this is a major issue because should the business fail and should these liabilities not be paid current they become the obligation of the principals and signing authorities. Ignorance is no excuse and bankruptcy does not offer relief. Because of this relying on a payroll company until you are a relatively large organization with an accounting department is wise. Even in this case taking steps to protect this area from mismanagement and ensuring as principal that you actively oversee this responsibility is wise.
There are a number of good payroll outsourcing alternatives. Paychex and ADP are probably the best known. You can choose to either pay the payroll tax yourself or deposit payments with these companies and they will remit this for you to the appropriate jurisdictions / revenue collectors.
Simply establishing this relationship is not enough however. As principal there remains plenty of issues that can create a tax liability for you personally. Because of this, principals and their senior managers should take a few simple steps to protect themselves. The main steps I advise are the following:
1) Sit down with a good CPA with payroll expertise. I define good as a CPA who can provide years of references backing their reliable calculation and oversight of payroll tax. Ask the CPA to explain the percentage of each pay check for each jurisdiction you operate in that should be anticipated to be paid. In other words, if employee John Doe receives $10,000 in the city of Topeka, Kansas what will your payments be above the $10,000 to the federal government, to the state of Kansas, to the county where Topeka resides, and to the city of Topeka.
2) Each month verify that payments for each jurisdiction are reasonably consistent with the expectation given from step 1. If not, find out what the situation is and work directly with your payroll company to rectify any shortfall or overpayment. Verify at the time that all payments are made on time or early.
3) At year end ask your accountant to review the payroll tax payments for accuracy and assurance that you are likely fully paid to all jurisdictions.
These simple steps will protect the interest of the entity, your employees, and your interest as principal. More importantly, the tax systems are very inflexible on payroll tax receipts. Effective management will keep you clear of very aggressive enforcement and collection laws.
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Payroll New York, Unique Aspects of New York Payroll Law and Practice
By Charles Read
The New York State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of Taxation and Finance
New York State Income Tax Bureau
W.A. Harriman Campus
Albany, NY 12227-0125
(800) 225-5829 (in state)
http://www.tax.state.ny.us/
New York requires that you use New York form "IT-2104, Employee's Withholding Allowance Certificate" or a Federal W-4 Form for New York State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In New York cafeteria plans are not taxable for income tax calculation; taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.
In New York supplemental wages are taxed at an 8.2% flat rate.
W-2s are not required to be sent in New York.
The New York State Unemployment Insurance Agency is:
Division of Unemployment Insurance
State Campus, Bldg. 12
Albany, NY 12240
(518) 457-2635
[http://www.labor.state.ny.us/business_ny/unemployment_insurance/unemployment_insurance.html]
The State of New York taxable wage base for unemployment purposes is wages up to $8,500.00.
New York requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.
Unemployment records must be retained in New York for a minimum period of three years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The New York State Agency charged with enforcing the state wage and hour laws is:
Department of Labor
Division of Labor Standards
State Office Bldg. Campus
Building 12, Rm. 532
Albany, NY 12240
(518) 457-4321
http://www.labor.state.ny.us/
The minimum wage in New York is $5.15 per hour.
The general provision in New York concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.
New York State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:
- Employee's name
- Employee's address
- Employee's social security number
- Employer's name
- Employers address
- Employer's Federal Employer Identification Number (EIN)
This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a $20.00 penalty for a late report and $450 for conspiracy in New York.
The New York new hire-reporting agency can be reached at 800-972-1233 or 800-225-5829 or on the web at http://www.tax.state.ny.us/wt/newhire.htm
New York does not allow compulsory direct deposit
New York requires the following information on an employee's pay stub:
- Gross and Net Earnings
- explanation of wage computation if requested
- itemized deductions
New York requires that employee be paid no less often than semimonthly; weekly for manual workers (semimonthly if commissioner of labor agrees); less frequently for FLSA-exempt employees paid over $600 a week.
New York requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed seven days for manual workers.
New York payroll law requires that involuntarily terminated employees must be paid their final pay by next regular payday (by mail if employee requests) and that voluntarily terminated employees must be paid their final pay by the next regular payday or by mail if employee requests it.
Deceased employee's wages of $30,000 must be paid within 30 days of death to the designated beneficiary or surviving spouse; $15,000 within 31 days to 6 months to the surviving spouse, adult children, parent, sibling, niece or nephew, creditor, or person paying funeral expenses (in that order); $5,000 if more than 6 months after death to distributee, creditor, or funeral expenses.
Escheat laws in New York require that unclaimed wages be paid over to the state after three years.
The employer is further required in New York to keep a record of the wages abandoned and turned over to the state for a period of 5 years (after Dec. 31 of year report is filed).
New York payroll law mandates no more than $1.85 may be used as a tip credit.
In New York the payroll laws covering mandatory rest or meal breaks are only that all employees must have 30 minutes for noon meal from 11 a.m.- 2 p.m. (60 in factory); another 20 minutes from 5 p.m.-7 p.m. if shift starts before 11 a.m. and goes after 7 p.m.; 45 minutes during shift of at least 6 hours starting between 1 p.m. and 6 a.m. (60 in factory).
New York statute requires that wage and hour records be kept for a period of not less than six years. These records will normally consist of at least the information required under FLSA.
The New York agency charged with enforcing Child Support Orders and laws is:
Division of Child Support Enforcement
New York State Department of Family Assistance
40 N. Pearl St.
Albany, NY 12243
(518) 474-9081
https://newyorkchildsupport.com/home.html
New York has the following provisions for child support deductions:
- When to start Withholding? First pay period after 14 days from service.
- When to send Payment? Within 7 days of Payday.
- When to send Termination Notice? "Promptly"
- Maximum Administrative Fee? no provision
- Withholding Limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of “How to Start a New Business”.
For Professional Payroll services at a Budget Price go to http://www.PayrollonaBudget.com a Paperless Payroll Company.
Go to http://www.CustomPayroll.com For a full service payroll service bureau with CPA's on staff.
See an excerpt of Mr. Read’s interviews from William Shatners “Heartbeat of America” television show on the websites linked above.
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Bookkeeping Service New York - Choices That You Can Take Advantage Of
By Amitaabh Saboo
If you're living and establishing a business in one of the busiest metropolitan in the world, then perhaps it's time that you choose a bookkeeping service New York. Fortunately, there are a lot of companies and freelancers that can provide you with quality work. Moreover, there are several bookkeeping services that you can choose from, allowing you more flexibility on how to go about the financial operations of your business. For a start, a bookkeeping service New York can either be or all of the following:
Accounts Receivable Services. Accounts receivables are the money that you still need to collect from your customers. They are already considered as assets by the company, but unless they are collected, they can never be called as realized. As you know, cash is one of the lifeblood of an enterprise. Hence, you need to make sure that debts are collected at the right time and from the right person. A bookkeeping service New York could also be related to accounts receivable. With this, the individual should have the capability to manage the accounts receivable of your business. The bookkeeping service New York may also include setting up the database of customers; preparing the invoices to be sent to all those who are in debt; maintaining account balances of customers; and reporting of delinquent accounts, balances of customers, and receipts.
Accounts Payable Services. A bookkeeping service New York can also be in line with the accounts payable of the client's business. Here, the job is to set up the database of vendors and suppliers as well as record invoices from them. This is to ensure that you can easily monitor your existing debts and plan out when you are going to pay them. You can also conveniently come up with a budget for your business every month. Moreover, the bookkeeping service New York may involve processing checks and scheduling payments. The bookkeeper should also be able to reconcile statements in order to come up with the real accounts payable balance of the enterprise. However, for security reasons, you have to make sure that the access of the bookkeeper should not include knowing your account number and, of course, your PIN. What he needs to do is to simply prepare the checks and the statements and then send them to you.
Other Services. The bookkeeping service New York could also be related to payroll. One of the biggest headaches of business owners is knowing how much and when to release the salaries. Though they could set the most convenient schedule for the releasing of payroll, a lot of times they forget to pay their employees simply because there are a lot of other things to do. You can allow somebody else to take care of this a problem. A bookkeeper may also control the payroll of your company. This means he has the responsibility to keep track of the attendance of employees and the number of hours they work. The bookkeeping service New York may also render the bookkeeper responsible for deducting from the salary the mandatory benefits, as well as calculating the bonuses that an employee may get from the company.
Accurate Bookkeeping Service in New York improves the ability of a firm to focus on business growth while simultaneously curtailing risks and costs. There are many Bookkeeping Services in New York that work for small and medium businesses and CPAs.
Article Source: https://EzineArticles.com/expert/Amitaabh_Saboo/154412
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Benefits of Outsourcing Payroll Services
By Sammy Gates
Deciding to outsource the payroll division of a company is a complicated matter. It will require much research and preparation to finally arrive at a logical conclusion. Perhaps it may be of some help to know that thousands of business organizations have outsourced their payroll functions. The Los Angeles payroll service is one of those which make this possible for businesses around the area.
Organizations are very good in the business which they do. Whatever business this is, an organization cannot be an expert at everything. However, the service is made of experts in this field, providing expertise concerning the payroll of a business organization.
With this service an organization can save time, money, frustration and other incidental costs. Through outsourcing the payroll aspect of an organization, the management department has no great need to keep up with the changes in local, state and federal laws that affect payroll. They assume this burden and liability for the company. Aside from this matter the service employee's can keep up with the legislation, which can reduce a company's cost in the long run.
This service is also a good liability shield; any mistake will be attributed to the service provider and not to the mother company. This will place the company under a better light in the eyes of the law, insuring the goodwill of a company.
The payroll service makes a company's growth convenient. There will be less need to worry about dedicating extra resources in order to keep up with changing payroll issues. With the matter of payroll already solved, the company can spend more time and focus on more important matters. A large administrative task of trying to handle payroll is an easy task with the service.
The Los Angeles payroll service can handle other matters besides payroll incentives, including retirement plans, workman's compensation issues and employee benefits which require planning. There are many reasons indeed to outsource one's payroll needs. The service saves a company time, money and leads a company towards its goals.
For more information on payroll service [http://www.lapayroll.com/] please visit LAPAYROLL.com
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Payroll Illinois, Unique Aspects of Illinois Payroll Law and Practice
By Charles Read
The Illinois State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:
Department of Revenue
101 W. Jefferson St.
P.O. Box 19022
Springfield, IL 62794-9022
(217) 785-0970
(800) 732-8866 (in state)
http://www.revenue.state.il.us
Illinois requires that you use Illinois form "IL-W-4, Employee's Illinois Withholding Allowance Certificate" instead of a Federal W-4 Form for Illinois State Income Tax Withholding.
Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Illinois cafeteria plans are: not taxable for income tax calculation; not taxable for unemployment insurance purposes if used to purchase medical life insurance. 401(k) plan deferrals are: not taxable for income taxes; taxable for unemployment purposes.
In Illinois supplemental wages are taxed at a 3.0% flat rate.
You must file your Illinois state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media.
The Illinois State Unemployment Insurance Agency is:
Department of Employment Security
401 S. State St.
Chicago, IL 60605-1289
(312) 793-5700
The State of Illinois taxable wage base for unemployment purposes is wages up to $9,800.00.
Illinois requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.
Unemployment records must be retained in Illinois for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.
The Illinois State Agency charged with enforcing the state wage and hour laws is:
Department of Labor
Labor Law Enforcement
160 North LaSalle, Ste. C1300
Chicago, IL 60601
(312) 793-2800
[http://www.state.il.us/agency/idol/]
The minimum wage in Illinois is $6.50 per hour.
The general provision in Illinois concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.
Illinois State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:
- Employee's name
- Employee's address
- Employee's social security number
- Employer's name
- Employers address
- Employer's Federal Employer Identification Number (EIN)
This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a $15, $500 penalty for a late report in Illinois.
The Illinois new hire-reporting agency can be reached at 800-327-4473 or on the web at [http://www.ides.state.il.us/employer/newhire/general.htm]
Illinois does not allow compulsory direct deposit
Illinois requires the following information on an employee's pay stub:
Illinois requires that employee be paid no less often than semimonthly; monthly for FLSA-exempt employees; union contract can provide different intervals.
Illinois requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed semimonthly-13 days; weekly-7days; monthly-21 days; daily-1 day.
Illinois payroll law requires that involuntarily terminated employees must be paid their final pay immediately if possible, if not, by next regular payday; next regular payday if suspended due to labor dispute or temporarily laid off and that voluntarily terminated employees must be paid immediately if possible; if not, by next regular payday.
Deceased employee's unpaid wages must be paid when normally due to the person owed for funeral expenses, spouse, or child after small estate affidavit; estate no over $15,000.
Escheat laws in Illinois require that unclaimed wages be paid over to the state after five years.
The employer is further required in Illinois to keep a record of the wages abandoned and turned over to the state for a period of 5 years.
Illinois payroll law mandates no more than 40% of minimum wage may be used as a tip credit.
In Illinois the payroll laws covering mandatory rest or meal breaks are that employees must have 20 minutes during first 5 hours of 7and a half-hour shift.
Alabama statute requires that wage and hour records be kept for a period of not less than five years. These records will normally consist of at least the information required under FLSA.
The Illinois agency charged with enforcing Child Support Orders and laws is:
Division of Child Support Enforcement
Department of Public Aid
509 S. 6th St.
Springfield, IL 62701
(800) 447-4278
[http://ilchildsupport-employer.com/Default.aspx]
Illinois has the following provisions for child support deductions:
- When to start Withholding? 14 working days after the withholding order is mailed to the employer.
- When to send Payment? Within 7 days of Payday.
- When to send Termination Notice? "Promptly."
- Maximum Administrative Fee? $5 per payment.
- Withholding Limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of “How to Start a New Business”.
For Professional Payroll services at a Budget Price go to http://www.PayrollonaBudget.com a Paperless Payroll Company.
Go to http://www.CustomPayroll.com For a full service payroll service bureau with CPA's on staff.
See an excerpt of Mr. Read’s interviews from William Shatners "Heartbeat of America" television show on the websites linked above.
Article Source: https://EzineArticles.com/expert/Charles_Read/28852
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Should Your Company Consider Outsourcing Some Departments?
By Chuck R Stewart
As a company, it's important for you to know your strengths and weaknesses. Then, with this knowledge, you can choose to do what you are good at and pay another company to do what you are less good at. It just makes sense. For example, one area that you may not want to deal with is the warehousing of your inventory and finished goods. If your company is located in Texas, you can hire a Texas contract warehouse or a Houston 3PL (third party logistics) warehouse. If you are in California, try a California contract warehouse.
In the past most companies considered it to be good business to set up the business and do all work within the company. The founders of the corporation would choose the products to be sold and would do all of the design work. This is the core of the corporation. Another core activity is sales. The sales force needs a strong loyalty to the company and the product and a deep knowledge of the product.
Over time, it was discovered that a company could be leaner and meaner if it concentrated on these core departments. That meant that maybe someone else could do some of the tasks better and more efficiently. Two words apply to this type of work: outsourcing and outside operations.
One department that can be outsourced is human resources (HR). There are many companies that specialize in handling the benefits for a company. These companies can help other companies to select the best medical and other insurance for the lowest cost. Other HR-related tasks include processing the payroll. For hiring new employees, recruiting companies are available.
Another department can be outsourced is information systems (IS) or information technology (IT). In this area, too, professionals who specialize in network setup and maintenance can give a company excellent service.
Outsourcing software development and technical support to companies in foreign countries is in the news these days. This solution is attractive to companies because these foreign workers can live well in their countries for less money that is required for domestic employees. (However, domestic workers suffer deprivation when this work is no longer available to them.) Two disadvantages of this foreign outsourcing are the time difference and the language barrier.
Outside operations are used by the manufacturing department. If the company is manufacturing its own product and has not outsourced the manufacturing, there may still be some manufacturing processes that they can't perform or choose not to perform. In this instance, the partially finished material is sent to a vendor, who then works on the material. One example of a process that is often performed by an outside vendor is heat treating.
Finally, the company may not want to track its own inventory in their own warehouses. Or maybe they have some warehouse space but may need additional space at certain times of the year. These companies would want to make use of contract, or 3PL, warehouses.
Theoretically, a company could consist of only the core departments, with all other work being outsourced.
Chuck R Stewart recently stored the overstock from his store in a Houston 3PL warehouse. He has found that storing the overstock in a Texas contract warehouse to be extremely convenient.
Article Source: https://EzineArticles.com/expert/Chuck_R_Stewart/191394
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