One of the most important aspects of running a business is accounting, which is under the finance department of a company. Typically, accounting, in conjunction with the HR department, handles payroll accounting. For a small business that does not have a rigid office structure with a full complement of staff, payroll may be handled by the business owner or by a staff trained to process payroll payments.
- Salaries, gross wages, commissions and bonuses, etc. earned by each employee
Items affecting payroll cost
The cost of a payroll service depends on your needs. Items affecting cost of a payroll service include:
- Frequency of payroll payment
- Actual number of employees
- Location of employees (if there are branches in different states)
Basic payroll service charges
It is usual for a payroll service firm to offer introductory pricing for six months, after which they will have a substantial rate increase. Before you commit to a payroll service firm, make sure to check if they have planned rate increases. Also keep in mind that other services, such as direct deposit, automatic check signatures, printing and check delivery, 1099 and W2 processing as well as federal and state tax filing require separate fees. Make sure you define your exact needs for a payroll service before making a commitment or the service might become too costly for you.