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I have worked with companies that use ADP and Paychex to outsource their payroll. It is a very common practice for a payroll service to draft customers accounts for payroll taxes and processing fees. Smaller companies taxes are not due until the 15th of the following month, however, a payroll service will draft the customers account and hold the money in their own account, earning interest, until the taxes are due the following month, or even 30 days after the end of a quarter. This is very very dangerous, see the above post by "aityena" about losing their money when the payroll service did not forward the payment(s) to the IRS or state.

I use to work in public accounting and saw this first hand. I still help some companies with bank reconciliations and accounting questions, and still see the payroll service draft the account for taxes that are not due for months.

Wow...good to know Dallas. Appreciate the information.
It's interesting to see how the payroll companies are playing with due dates.

CorpCons08

Kathy,

Can you also send any material you have on your services to my email address?
I would like to have it on hand for clients I work with.

Thanks,

CC08

What is your email address?

Payroll Place

FCP,

If you are looking for high customer service and low-cost, I suggest you contact me at lavonne.clark@acebusinessservices.com. We provide payroll processing, Quarterly payroll tax processing, W2's and 1099 processing, and Direct deposit or Paper check offerings. We do not retain your quarterly payroll tax money. The money stays within your business until it time to be sent to the IRS. We send the payment electronically to the IRS or you have the option of having us process the forms and you mailing it yourself. We provide the option of you entering the employee hours yourself to ensure accuracy or we can do it. You would also be granted 24/7 access to your Payroll and Tax reports, which is password protected. Your employees would be able to have access to their paystubs and the ability to update their personal information. Our payroll processing can also be integrated into your accounting software. We eliminate your high cost of using an accountant or an expensive payroll outsourcing company as well as the time you would need to spend by doing it yourself with Quickbooks or Peachtree. We can provide what ADP, Paychex, Quickbooks, and Peachtree can not, excellent customer service and low-cost. With that being said, I have the solution to your hassles and headaches of payroll, taxes, and many other business services. We do not go up on your cost as you add employees, it actually goes down. This helps as your business grows. Our standard of service is always higher than our price.

I look forward to meeting you,

Lavonne Clark
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We have been using the B of A "Easy Online Payroll" Service for about a year an a half and have been happy with it. Although, it's not free as someone mentioned earlier (at least for my accounts) the charge is very reasonable (I think in the $15.00/month range-requires B of A business chekcing). Because our employees are paid via direct deposit into B of A personal checking accounts, there's no additional charge for that (or hard checks).

The service handles all the Federal filing, withholding, and tax payments electronically. Depending on the state where you're doing payroll they'll either handle all that electronically or provide you with completed forms that you'll have to print and file manually.

We've been happy with their customer service. They were particularly helpful when we had to file an amended 940 and pay additional tax when we forgot to enter a manual bonus we had paid to two employees at the end of the year.

HTH

I am a tax preparer/bookkeeper and have just started offering payroll services to my existing clients. I am currently considering the expansion of my payroll services to other companies in my area. I am still researching pricing, worker's compensation insurance options, etc. Any advice would be welcome.

The point of my post is..I give my clients the option of paying their accrued tax liabilities via the IRS's EFTPS as they accrue vs when they are due. This way, they do not have a large liability at the end of the period. If they do not opt for this service, I enclose a statement of accrued liabilities with each payroll statement so they are aware in advance. This way there are no suprises or shortage of funds. I would think it would be illegal to hold their funds until tax payments are due.