Indianapolis Payroll Services Benefits
Indianapolis Payroll Services
Processing payroll for your business can be a daunting task, and there are a myriad of reasons to hire a professional Indianapolis Payroll Services Company to help you handle your payroll needs. There are many responsibilities the employer has, which include:
Handling documents for your employees
These can be W-4s for your state, the I-9s, salary deferral agreements, and many other forms specific to your business and benefits.
Ensuring that your employees are not only paid, but also on time. Setting aside the time to run payroll and ensure your employees are being paid accurately.
If you’re a business owner with employees, you will also have to complete additional tax filing.
This can involve a lot of time, paperwork, and know-how to ensure you are completing payroll correctly. Let’s look at some of the things you need to watch out for, and why a payroll professional could be good to outsource that work to.
When hiring employees, there are two important designations. Are they an actual employee, or an independent contractor? Understanding the difference, and ensuring you have the employee classified correctly is hugely important because of how employer taxes and payment works. An employee and an independent contractor are paid in different ways, as a baseline, but also you have to factor in things regular employees may have such as bonuses, sick time, vacation time, and other benefits. If you hire a regular employee as an independent contractor, and you discover that they should have been a regular employee, you could owe back employer taxes. It’s vital to ensure you have the correct designations.
This is more closely connected to hiring employees, as the rules for regular employees and independent contractors are different. Paying employees is not as simple as calculating how many hours they put in, and factoring their hourly wage, you must also consider any applicable taxes the employee has to pay, and those you pay on behalf of the employee.
There are many payroll taxes, each with their own deadlines for remittance to the IRS, that an employer, or their outsourced payroll provider has to manage, and ensure those remittances are made in a timely manner. Because there are so many different payroll taxes that the employer has to withhold, it can be confusing to ensure that the correct deadlines are met. These taxes can include federal income tax, state income tax, FICA/FUTA taxes, etc.
Wages are paid to employees typically in two ways; check or ACH deposit. Currently, roughly 60% of all employees in the US receive their wages by way of direct deposit, or ACH deposit. There is a lot of cost savings and convenience for both the employer and employee when this option is used. For a check, you have to write the check, fold it, and mail it to the employee, or have a time for them to pick it up for work. Not feeling well on payday? Well if you pay your employees by check, you may still need to be physically present to do so. Direct deposit can cut out that work, and reduce the overall
load of tedious elements of handling Indianapolis payroll. I said that there are benefits for the employer and employee though. With direct deposit, wages can be deposited in the employees bank account quickly, and using a reliable method. Employees can spend less time in line at banks to cash or deposit their checks, or save on convenience fees of having a check cashing location process the check for them. While these two are the most common methods, there is a paycard system employers can use. Paycards resemble, in a way, reloadable gift cards that you can buy for many retail and restaurant locations. Funds are deposited on the card, which are handled by a bank, but don’t require the employee to physically go in and establish an account. Fees are usually low or non-existent for employers, so this could be a good option for them.
Indianapolis Payroll Outsourcing
Learning the nuances to handling payroll for Indianapolis companies can consume a lot of time for employers. Understanding all the key elements of processing payroll, managing files and forms for employees, handling tax filling and remittance can easily overwhelm some individuals. When choosing to outsource your Indianapolis payroll services, you still need to make a few considerations. Look at elements that a payroll company provides. Do they offer tiered services? What are the rates and fees associated? Are you able to bundle employees or able to pay a fee for them individually? Will the payroll company assist you with onboarding? Will they track any of your paperwork? Will they provide you with any assistance to complete your payroll tax filing?
When outsourcing payroll, asking yourself or potential providers, like BK Express Bookkeeping, these questions will help you understand any specific costs associated with their services and help you understand the cost benefit of their payroll services.
Have any additional questions about payroll services? Contact BK Express Bookkeeping today!