What Does a Payroll Service Company Actually Do?
There’s no doubt that tackling payroll presents serious challenges to businesses of all sizes. Handling time and attendance, payroll taxes and workers’ compensation can be difficult for even the most experienced business leaders. That’s where payroll services companies come into the picture. These companies take the stress out of payroll and related processes by providing Internet-based, intuitive services to companies of all sizes and in all industries.
What Do Payroll Companies Do?
Just like their name suggests, companies that specialize in payroll services work with their clients to ensure that employees are paid on time and that all of an employer’s legal obligations are met. Because they focus only on payroll and human resources tasks, these companies take the worry out of payroll processes. That allows business leaders to focus on important enterprise tasks instead of worrying about how and when individual employees will be paid.
Of course, payroll is more than just writing checks or setting up payments via direct deposit. Payroll companies handle a wide variety of duties including:
- monitoring employee time and attendance
- setting up and making adjustments to direct deposit accounts
- calculating payroll taxes and ensuring the correct deductions
- proactively monitoring the relationship between workers’ comp premiums and actual payroll
- integrating third-party 401(k) and benefits plans
- providing electronic payroll records to employees and employers
- ensuring compliance with all state and federal laws governing payroll.
One of the key responsibilities of a payroll company is to make it easier to monitor employee attendance and time at work. Most companies do this by offering a combination of punch-in or clock-in options to employers. In some cases, employees may clock in using secured badges or fingerprint scanners. In others, employees log into an online account to clock in at the beginning of the day and clock out at the end of work. These systems can also be configured to monitor breaks and meal times.
Some payroll companies, such as Integrated Payroll Services, also provide HR support services to clients. These services are designed to help employers meet their legal obligations and check compliance of company programs with different labor laws. The information provided as part of these services is always up to date, so business and HR leaders don’t have to waste their time researching recent developments in labor law online.
Why Do Businesses Choose Payroll Service Companies?
Choosing a company that offers payroll services is a great way to streamline payroll processes and eliminate the need for an in-house payroll department. Many business leaders also choose payroll service companies because they offer the best in legal compliance and accountability. When business leaders work with payroll specialists, they can rest assured knowing that any pay or filing mistakes will be identified and corrected quickly. It’s a great way to provide employees with efficient, reliable pay services while minimizing liability concerns.