While processing payroll in-house can be painful and time-consuming, the possibility of outsourcing these services is a great boon to many companies. These service providers give businesses the right solution, often tailor-made to suit particular needs. They say their solutions make any business more economically viable by reorganizing and supervising its administrative needs vis-à-vis the employee, including payroll, benefits, tax withholding and compliance processing.
Once the onus of payroll services is placed on the shoulders of these payroll companies, the business itself can actually focus its energies on expanding and building its core competencies, so that bottom lines can see a major positive difference.
Moreover, the transmittal of payroll taxes and filing income tax returns with federal, state and local taxing authorities are not time- or cost-effective. Whereas if the electronic filing and payment service for federal, state and local taxing authorities is availed of, then timely filing and payroll requirement doesn't become burdensome.
Furthermore, while taking advantage of payroll services, the customer can choose the means of data entry that is most convenient, such as phone, fax, email or entry directly through the Internet. Payroll information can be accessed from anywhere via the Internet 24/7, with the help of a protected login ID and password. The employee information can even be altered or printed, as per requirements.
There are companies that provide payroll services for non-sourced workers, previous employees, and contract workers who are not considered independent contractors. Payroll services in that case will provide an all-inclusive collection of benefits complete with medical plans, retirement, tax plans and life insurance, among other things.
This type of payroll service management for contractors is customized according to the needs of skilled contractors, presenting direct deposit and tax compliance plans on a case-by-case basis, health and dental coverage, retirement plans, dependent care plans before tax, worker's compensation, unemployment insurance, and an hour's worth of free financial and tax consultation, electronic timecards and weekly paychecks, to name a few.