Many businesses experience difficulty in achieving consistent payroll services for their local operations or across multiple countries. These difficulties are as a result of changing laws, working and compensation models – all of this contribute to the complexity of your company payroll. Check our previous post – how to do payroll in 5 Professional Approach.
Let’s delve in…
What is Payroll?
Payroll refers to a company’s number of employees, the total amount of money or salary paid to these employees and the records of all the total money a company spends or pays to its employees – such as salaries, wages, withheld taxes, and employees bonuses or perks.
A brief on Payroll taxes…
The fundamental requirement of every government agency is that companies or employers withdraw employee’s income taxes from their wages.
Payroll taxes in developed countries like the U.S are separate from income taxes, although they are levied on employers in proportion to salary. U.S. income and payroll taxes collected through deductions are considered to be trust fund taxes because the employer holds the deducted money in trust for later remittance.
There is a basic formula for calculating the Net Pay – From gross pay (the salary paid to the employee) one or more deductions are subtracted, to arrive at Net Pay. Thus the employee’s gross pay (pay rate times number of hours worked, including any overtime) minus payroll tax deductions, minus voluntary payroll deductions, is equal to Net Pay. Payroll tax deductions play a critical role and because they are provided by law they are known as statutory payroll tax deductions.
The employer must withhold payroll taxes from an employee’s check and hand them over to several tax agencies by law. Payroll taxes withholding;
- Medicare tax.
- State income tax
- Federal income tax
- Social Security tax
- Various local tax
Types of payroll services
The 5 Hyper-professional Payroll Services & Companies
Here is a list of the 5 most used and accurate payroll services and companies that you might consider adopting for your business payroll services.
Gusto is Payroll services for small Business & companies that solve some of the biggest challenges that businesses face by making complicated tasks both simple and personal – In an easy, integrated platform, Gusto automate and simplify your payroll, benefits, and HR, all while providing expert support. The amazing thing is – You and your employees will get the peace of mind you need to do your best work. It provides employees’ benefits—like health insurance and 401(k) accounts—while helping companies create great places to work. To learn more visit the Gusto home page.
Best Fit software – Justworks is a Payroll Service for Hands-off Payroll Processing Using a PEO. Justworks is a platform that helps employers manage payroll, benefits, employee information, and employment-related compliance.
TriNet PEO is vastly used by Multistate Employers – is a professional employer organization that provides small and medium-sized businesses (SMBs) with full-service HR solutions tailored by industry. To free SMBs from HR complexities, TriNet offers access to human capital expertise, benefits, risk mitigation and compliance, payroll and real-time technology.
Your business is unique, just like your industry. Growing tech companies don’t act like financial institutions or nonprofits. With TriNet, you have the support of industry-specific HR professionals who cater to the HR needs of technology companies.
Intuit Payroll Services
Intuit is best for QuickBooks Users Who Want General Ledger Integration – access and manage your books from your computer, laptop, tablet, or smartphone anytime you choose. Create access privileges so that your colleague or accountant can log in and work with your data online.
Create and send custom online invoices from any device. The QuickBooks Online Mobile app automatically stores your data in the cloud and syncs across your devices, making it easy to manage your business on-the-go. Access your account, manage your business, and stay organized anytime, anywhere on your computer, mobile or tablet.
Paycor is a payroll service industry best used by growing businesses above 100 employees’ – payor modernizes the way you manage people, from the way you recruit, onboard and develop talent to the way you pay and retain them, and build a company culture.
Zenefits as the name sounds – is majorly used by employers who want to give a lot of benefits to their employee’s – Zenefits is a payroll service that focuses on providing a full range of employee benefits to your staff. Unlike a PEO, it’s not a co-employer. Instead, it’s a service that provides a full suite of solutions in addition to payrolls, such as HR tools like org charts, and benefits like health insurance and a mobile app.
Best of all – Square payroll is the best payroll processing software for small businesses and company size – Square Payroll is a full-service payroll solution that helps small businesses pay employees and handle payroll taxes. … Square Payroll also automatically calculates and provides access to vital information like paid time off, hours worked and total labor cost for each employee.
OnPay Payroll Services
The best fit for Small, growing and large businesses and accountants – no matter how big your team is, OnPay always runs payroll fast, and we give you the HR tools and reports you need to stay organized. We also sync with QuickBooks, Xero, and other top software.