Payroll services are the grease that keeps the wheels turning at any business. When the process runs smoothly, you won’t hear a thing from anyone. However, payroll can be delicate, and kinks in the system throw a major wrench in your employee morale, efficiency, and potentially retention. Therefore, it’s something you absolutely must get right.
Your people need to trust that they’ll get paid on time, every time. One payroll problem might be forgivable. But, once that problem turns plural, doubt will fester in your workforce. Of course, you want to compensate your employees for their work, and you definitely want to avoid encounters with the IRS over payroll taxes. Luckily, payroll service providers know how to keep you out of hot water.
What do the best payroll services have in common? Reliability. Working with a vendor like ADDA Infusion ensures you don’t spend time stressing about your systems. We work with any payroll system. Companies we’ve consulted with have used a variety of platforms, including Paylocity, ADP, Workday, Bamboo, Gusto, UKG, Paychex, and more. No matter the system, we move through administration and processing like clockwork.
In this blog, we share an overview of what you should expect from a reliable, effective payroll service.
Payroll System Implementation
Whether you’re implementing a brand new payroll system or looking to move to a new one, ADDA Infusion can set things up seamlessly. Matching your company with the right system is critical. For example, a larger business may need a more robust software such as Workday or UKG. Otherwise, we often recommend Paylocity, but ultimately our goal would be to find a system that best meets your needs. As with other SaaS tools, implementation can be bumpy without the structured guidance of an expert. Moreover, since this particular software will be your payroll hub, things must go smoothly.
For example, if your company is moving from one system to another, you will need to migrate a lot of data, some of which can be pretty sensitive. Similarly, setting up a new system altogether means gathering identifying information from employees all at once. You don’t want to leave any of that work to chance. By working with a payroll service provider, your business won’t lose time trying to learn this process on the job.
While you set up your preferred system, you can establish more granular elements like pay schedules and payment methods. If you aren’t sure which pay schedule would be best for your organization, your ADDA consultant can provide some additional guidance.
Perhaps your company already has a system in place that you love, so you aren’t looking to implement something new. Whatever software you use, ADDA consultants will be able to comfortably take on your payroll workload.
Outside of implementation, much of the remaining work falls under administration.
Payroll Administration
Payroll administration is the continuous work that ensures checks go out on time and taxes are filed. Here, we would also handle employee and employer tax-related tasks such as W-2 and 1099 filing and the quarterly and annual employer payroll filings.
To achieve that, payroll specialists must calculate the correct tax withholdings for each employee and your business, so they can pay those taxes. Specifically, they must deduct withholdings for employee state, local, federal, and FICA taxes. Additionally, you’ll need to ensure that your state and federal unemployment taxes are paid.
Beyond the tax withholdings, specialists are also responsible for deducting premiums and payments related to benefits from your employees’ paychecks. For example, if your staff has any kind of employer-provided health coverage or a retirement fund, such as a 401k, your payroll team must regularly deduct those costs.
We also cannot stress enough the importance of maintaining accurate payroll records. For example, the federal government requires your business to keep at least three years of correct records and four years of payroll tax records. Depending on the state you operate in, more record-keeping complexities may exist. As such, you want to make sure you have a dependable service provider to keep your business compliant.
Payroll Processing
Payroll processing is the final step that gets checks into your employees’ hands or deposited into their bank accounts. Running payroll from start to finish involves: calculating hours and overtime, entering additional pay such as commission, sending out checks, and distributing withholdings.
Processing is the most visible piece of the payroll puzzle. It won’t take long for your employees to tell you if there are any issues here. However, if all the other parts of your process have followed the letter of the law, you shouldn’t have any problems. When you work with ADDA Infusion, you can trust that this step and the others preceding it will run without a hitch. Moreover, your employees will be able to trust that their employer has their backs.
ADDA has your Payroll covered!
You have plenty of things to worry about with your business; don’t let payroll be one of them. ADDA Infusion has mastered this process from implementation through processing. Click here to find out how we can take payroll off your plate.
