Payroll Services

What are payroll services?

Whether you have two employees or 200, every company has payroll needs. Payroll includes the total compensation a company pays an employee for their work. This includes the process of calculating an employee’s net pay and initiating payment to them. Payroll services help manage that process, ensuring employees are paid correctly and the proper records are kept.  

How does a payroll service work?

While each processing platform has unique features, most payroll services essentially work the same way. There is typically a cloud-based portal for both employers and employees. Employers can provide benefits and salaries for employees to access in one portal. Payroll services provide an essential service for business owners who need to provide timely and efficient payroll, while following state and federal laws.  

Payroll services help streamline processes. You can manage employees W-4 or W-9 forms, direct deposit information, and other relevant information directly on the platform. 

Many payroll services include features to help you administer benefits and integrate accounting services all in the same platform. A one-stop shop for employees decreases confusion about where important information lies.  

Some payroll services also provide employee training and development, along with payroll and benefits management. Essentially, there is a payroll services platform to suit the needs of any business, at any stage.  

How to choose a payroll service

The right payroll service should work for the current needs of your business, as well as options to support your business as it grows.  

These features can help you narrow down what exactly your business needs with its payroll service provider. 

• Payroll tax filing and payment: Your payroll processor should handle payroll tax filing and payments. They will prepare and file taxes based on where your employees live. This is important if your company has remote workers in different states.
• Variety of payment methods: The option to provide a range of payment methods to your employees, whether through paper checks, direct deposit, or prepaid debit card.
• Unlimited payroll runs: If your business has employees and contractors who get paid on different schedules or methods, you will want the flexibility of having unlimited payroll runs with your service provider.
• Self-service: Payroll services offer an online portal, so HR staff and payroll workers can view and change payroll data easily. Employees can also view their pay stubs.
• Reporting: Payroll software runs reporting on total compensation, deductions, or taxes paid in any given quarter or tax year at the company or individual level. This serves as recordkeeping as well for the company’s tax records.
• Compliance updates: Payroll services make it easy to stay up to date with the latest payroll and tax regulations, so your business stays compliant with all local and federal laws. 
• Software integrations: Critical integrations like accounting software help your company maintain records in the event of an audit. Additional integrations like your benefits administrator could also provide a seamless experience for your employees.

How much do payroll services cost?

Cost is always an important factor for any small business – but a payroll service is always money well spent. Your employees are your greatest resource, and their timely and accurate payment is critical.  

Payroll services can vary in price and are dependent on the types of features or add-ons your business needs.  

Most payroll services have a fixed monthly or annual cost and typically have a tiered payment structure to cater to the needs of various business sizes.  

Payroll services might charge extra fees for each transaction or employee. There may also be extra costs for additional features. It’s important to consider all the costs associated with a service provider, which could include:  

• Base subscription fees
• Per employee fees
• Setup and support fees
• Taxes or compliance fees
• Add-on fees