A payroll processing provider would manage an employer’s employee wages by collecting data like benefits, deductions, and time worked for the period. The payroll processing provider also ensures the employee wages are paid as at when due to avoid issues relating to unpaid salaries. Sounds like a piece of cake right? But without an expert handling payroll processing data or software for the same purpose, things might get out of hand real quick. That is why most companies part with a few dollars to get their payroll processing done quickly and accurately to avoid errors and the IRS.
Here are a few behind-the-scenes processes that happen before the real payroll processing procedure takes place:
Setting Up an Employer Status
One of the most paramount underground schemes before payroll processing takes place is set up the company’s employer status. First of all, an ‘employer status’ may mean one of two things.
First, it may mean a firm that process and issues its own payroll reports to the relevant bodies. Some firms have multiple companies organizing their payroll; however, it is commonplace to have an employer assigned to a single company.
Also, ’employer’ may mean the collection of several payroll processing entities under a single company. This allows for different payroll data to be collated at the employer category, for instance, a single individual working for more than one firm can be issued just a single W-2 form.
Another step is the process of selecting a suitable tax for a company – be it federal, state or at local levels. The W-2 forms require that the correct Federal Tax ID of the company be filled in.
Another step in the employer setup is the workers’ compensation class categories used in deciding what your company’s compensation class is. Expert advice is required in making this decision.
The employer setup also involves setting up the employees’ deductions, benefits, and earnings of your company. Then the employee details and mode of payment can be set up.
Tax Filing
Payroll tax filing is as important as paying up your employee wages. It must be done without any error and must be filed on time too to avoid being sanctioned by tax bodies.
For efficient tax filing, most companies turn to professionals. By doing this, there wouldn’t be a need to keep in mind that there is payroll tax filing coming up as the professionals would handle all the burdens.
Are you looking to find a reliable payroll processing provider in California? It doesn’t matter the state you are, however, if you are looking for a quality payroll processing provider, E-pay is all you need.
E-pay has licensed accountants who are well-versed in the payroll laws of the different states in the U.S and provide clients with timely and accurate payroll services.
E-pay also helps manage each employee data, and make their wages available to them as at when due, to promote employer-employee relationships and build motivation to keep working.
Sign up to E-pay payroll services today and let an experienced team of accountants and business attorneys help your business reach unprecedented heights in no time.