Accounting Payroll

Small Business Advice - Improve Your Accounts Receivable Collection Cycle Now

2008-06-09T05:01:00.000-07:00

Almost any small business can use advice on how to improve its collection cycle. The first line of defense against late payments is a complete invoice. Your bills should be accurate, detailed and easy to understand. If difficult to understand, then your client will need to call for additional information. That translates into "you have been added to their to-do list," which increases the time of your collection cycle. Include on each invoice:

Your company's contact information: name, address, tax id number, phone and contact person

The date the invoice was prepared

The customer's name and address

A description of the goods or services sold to the customer - itemize, if possible (An itemized bill is harder to contest.)

The amount due, with sales tax amount broken out

When the invoice is due

Once prepared, send invoices promptly. Another piece of small business advice is the longer you take to bill a customer the less likely you are to receive payment for the goods and services provided.

Many of my business mentoring clients are surprised to learn that the step requiring the most amount of time in the cash conversion process is the time it takes to collect on a customer account. The cash conversion process begins the moment they make contact with the customer, and ends when they have received and deposited payment from that customer; hopefully this cycle repeats itself each month.

The time it takes my business mentoring clients to collect their accounts receivable is measured by the average accounts receivable collection period. The average accounts receivable collection period is an important indicator for determining when their business will be paid for the goods and services it provides.

This simple calculation gives you a powerful tracking tool that helps you adjust your cash in-flow on an as-needed basis:

Step 1: Calculate your average collection period by dividing your total sales for the previous year by 365. This gives you your average daily sales volume.
(Total Sales / 365 Days = Average Daily Sales Volume)

Step 2: Then divide your average daily sales volume into your current accounts receivable balance to get the number of days it takes to collect a bill.
(Average Accounts Receivable Collection Period = Average Daily Sales Volume / Current Accounts Receivable Balance)

Now that you know your average accounts receivable collection period, you then need to interpret that number as it relates to your business by asking four important bookkeeping service questions.

Bookkeeping Service Question #1: Is your average accounts receivable collection period in line with the company's credit policy? If your credit terms provide your customers with 30 days to pay their bills, then you should expect that your average collection period will be somewhere around 30 days - maybe a little longer. If your average collection period is 60 days then you need to examine other factors that affect billing.

Bookkeeping Service Question #2: Are you billing your customers consistently? Look at your Accounts Receivable Aging Report, the report that summarizes all of your outstanding invoices by client and number of days outstanding. Are the outstanding invoices on that report related to products and services sold within the last 45 days, or are they related to products and services you provided three months ago and just got around to billing? Create a procedure to bill customers once a week or each time you have a completed sale.

Bookkeeping Service Question #3: Are you billing your customers effectively? Are your customers calling you with questions about your invoice? Perhaps you didn't have that important upfront conversation with your client about how you charge for your products and services. By having this conversation, confusion and anxiety over wondering if the customer is going to pay you can be eliminated.

Bookkeeping Service Question #4: Are you tracking overdue accounts and taking consistent action to collect past due accounts? Do you have an effective tool in place to track when an account comes due, and knowing who has paid their bills and who has not? When a customer's invoice goes past its due date, is there a procedure in place to follow-up with that customer? Sometimes sending customer statements and making friendly reminder calls is all it takes.

By answering these four basic questions, implementing a few bookkeeping service procedures and heeding this small business advice, you'll soon be running a fine-tuned collection machine.

change management

DIY Accounting Payroll Software Questions and Answers

2008-06-09T04:13:00.000-07:00

HMRC will advise the new tax code change from 543 to 603 which was announced in May 2008 and the date the new tax code to be applied which is expected to be September 2008. The amended tax code is entered as a new tax code on the employee details tax amendments section of the payroll file and the tax reduction is then automated at the date the new tax code is applied.

The income tax deduction calculated by the DIY Accounting payroll package is different to the inland revenue CD Rom.

Small differences can occur because the DIY Accounting payroll system has in the past used the revenue manual tax tables whereas the inland revenue employers CD Rom use a percentage calculation. In fact the manual tables jump in pounds and tax tables can increase by four pounds between different look up rates which can create small differences.

In the current financial year many of the financial income tax and national insurance calculations have been changed in the DIY Accounting payroll calculations to a mathematical percentage basis. Differences can still occur where the subject of the calculation is rounded to ignore the pence.

All these differences are minor and immaterial and adjust themselves since tax is calculated on a cumulative basis. HMRC percentage calculations also differ from the calculations using paye look up tables for similar reasons.

Employee gross pay was entered and no national insurance contribution was calculated.

The national insurance contribution table applied is shown in the column to the left of the employees name on the payroll sheet and you will probably see the letter C when because this employee is of working age and not a second employment the national insurance table letter should be A. Check the date for both for this employee which may have been omitted or entered wrongly.

Income tax deducted for my employee who is on a normal tax code was much higher than normal.

The income tax code column to the left of the employees name on the payroll sheet may appear as zero which should show the tax code. To resolve the tax code check the employee starting date has been entered and the numerical value of the tax code in the employees details and the date that tax code should be applied.

When I try to enter wages on the payslips a dialogue box appears with the message that the payslip spreadsheet is protected.

No entries are required to the payslips file. All entries are automated from the payroll file and the protection prevents corruption of the formulae in the payslip file. The entry on the payslip file can be changed by entering the required gross pay on the payroll workbook and the payslip will automatically update itself from there as part of the paye system.

I cannot see any tabs at the bottom of the payroll software workbook.

After entering the employee details navigate to the month in which you wish to enter gross pay by clicking the tab buttons at the bottom of the excel spreadsheet. If you do not see any tabs at the bottom of the sheet you may not be viewing the full sheet. Click the square box at the top of the menu bar to view the full sheet and the tabs should then be visible.

When I open the payslips file I receive an error message saying read only, non repairable error has occurred.

This is likely to have been an interruption during the download process that has corrupted the payslip file. Download the payslip workbook again direct from the confirmation email sent to you after purchase.

We bought the up to 20 employee payroll package and now have 23 employees.

Make a second copy of the payroll software, saved into a separate folder and split the payroll into two parts. Perhaps use one package for one department and the other package for a different department or use one for existing employees and the other for new starters.

Do I purchase a new payroll software package each financial year or can the payroll software be updated for more than one year paye purposes.

The payroll software include that years tax rules to
enable the packages to automate the production of that year tax returns. Each year has new tax rules embedded and being on excel rather than a database then it is necessary to purchase a new package each year.

Does the payroll software automatically generate the amount payable to the inland revenue each month.

The payroll package automatically calculates the income tax and national insurance and collects the information on a paye payments schedule so you know exactly how much to pay each month. The paye calculations also complete all the revenue forms including the P35 annual employers return which is required when you file the paye information with the revenue at the end of the financial year.

The payslip workbook is not automatically updating from the payroll spreadsheet.

The payslip updates automatically and there are no calculations on the payslip file or links out of that file. The most likely cause is that the payslip file was renamed and has broken the links from the payroll file. If you have saved the file after breaking the links by renaming the solution is to download the payslips file again without changing the name.

Franchising

Online Accountant - Where Can You Go Wrong?

2008-05-24T01:14:00.000-07:00

A lot of times, business owners run to an online accountant whenever they can no longer manage the financial operations of their business on their own. They would possibly look for one too if they don't know anything that's related to business accounting. Yet there are others who fail, by picking the wrong online accountant for them. Thus, they aren't only wasting their money on someone, but they are also jeopardizing the success of their entire business.

It's perhaps high time that you get to know the common mistakes you may encounter while you're in the process of searching for your online accountant. Make sure that you avoid all of them, to ensure that you can get the most appropriate one for you:

1. Looking for an online accountant at the wrong places. You will have greater success of finding an online accountant when you look for them in CPA firms and stable outsourcing companies that offer one. You are assured that this individual has been carefully screened and chosen based on his experience, knowledge, and expertise in his profession. On the other hand, you will likely fail if you try looking for them in friends and relatives who don't have close connection to the accounting and finance world.

2. Online accountant lacks qualifications. In truth, it's only you who can actually define the qualifications for your online accountant. Nevertheless, it's important that who you search for will have the knowledge about the subject matter. This means that he should have an accounting degree. Furthermore, he must have the experience to speak of. Usually, accountants would have to spend as long as 2 to 3 years, before you can be fully confident of their skills. There's nothing wrong in getting someone fresh from the university, but if you have plans of expanding your business or you don't have much time training him, then you should pick somebody with both skills and experience.

3. No proper resume or credentials. There are some businesspersons who skip looking at the resume and credentials of their online accountant. After all, for them it doesn't really add too much weight for their choice. However, skimming through their credentials will give you a good idea about their working experience, track record, and how well they do in their previous jobs. You could be meeting a virtual accountant with experience, but is often fired or forced to resign from his job because of his attitude or work performance. You basically don't want him to be part of your team.

4. Virtual accountant could fit the job. You have to think about the nature of your business, when you're searching for an virtual accountant. This is because you have to have someone who understands your business area. This way, you are guaranteed that there will be no or less mistakes in the way he treats financial transactions of your business. If you can't find one, then just ensure that he immediately understands the nature of your enterprise and applies the necessary and appropriate accounting methods.

entrep

Payroll Solutions - A Contractors Guide

2008-05-24T00:42:00.000-07:00

Sometimes there is more to a Payment solution than meets the eye!
IR35 has added to the complexity of taxation legislation and forced many more contractors to seek specialist tax advice. Unfortunately, a lot of this advice can be misleading, offering short-term gains with high risks.

HM Revenue & Customs (HMRC) are actively investigating some of the practices used by contractors to minimise their tax payments (tax avoidance) and may well examine each of your contracts individually rather than take your earnings as a whole. Therefore, as a contractor you need to be very careful when you choose your payment solution.

Pay as You Earn (PAYE)

Avoids the entire IR35 headache and is the HMRC compliant standard. The PAYE system is a method of paying income tax. Your employer deducts tax from your wages or occupational pension before paying you your wages. Wages includes sick pay and maternity pay.

This means that you pay tax over the whole year, each time you are paid. Your employer is responsible for sending the tax on to HM Revenue and Customs (HMRC).

Contractors that work through an employment agency and receive all income via PAYE
Agencies, only pay a reduced rate as they still have to pay out National Insurance, holiday and sick pay costs, together with the additional administrative burden of running a payroll and complying with current employment legislation.

Personal Service Companies (PSC) / Limited Companies

PSC's are commonly one man bands, processing income as part salary and dividend payments. In the past, contractors used this method to exploit tax loopholes and improve tax efficiency. Contractors set up a limited company and pay themselves via a minimum wage and dividends.

However, this method is now classed as risky because:

Contracts inside IR35 dividend payments are simply NOT viable anymore.
HMRC view minimum wage/dividend options as tax avoidance and may impose PAYE.
If there is no "goodwill" in the company, a contractor may be seen as receiving "disproportionate return on initial investment" and dividend will be taxable as PAYE.
(according to section 447 of the ITEPA, 2003)

Outside IR35: if a dividend payment takes a contractor over the 40% tax threshold they will face an end of year tax liability.

You will find many agencies and clients will not allow you to use this method until you've had your employment contract reviewed by a IR35 specialist, which can cost upwards of £150 per contract assessed.

Umbrella Company

An umbrella company acts as employer to independent contractors who work under a temporary contract, usually through an employment agency.

Since the introduction of the Managed Service Company (MSC) legislation in the budget 2007, the only way an independent contractor can comply with this requirement is to set up his or her own personal limited company or use an umbrella company.

An umbrella company issues invoices to the recruitment agency (or client) and, when payment of the invoice is made, will typically pay the contractor through PAYE (although historically the term has also been used for salary and dividend type payment structures).

Umbrella Companies are fast becoming both the choice for both contractors and agencies alike:

-Company pays the contractor via PAYE on the total contract sum and uses a HMRC approved dispensation to offset business expenses.

-IR35 is irrelevant as all income is paid as PAYE.

Composite Companies

There is no legal or tax law definition of the word "composite company". However, this term is commonly used in the context of service providing companies to the contracting industry.

The word "composite" means "made up of various parts" and in the context of contractors, is represented as a service providing company, through which many contractors place their contracts.

A mixture of salary & dividend payments now, could be viewed as blatant "tax evasion" by the HMRC, according to section 447 ITEPA, 2003:

-Company provides administrative services, invoicing and receiving payment for work carried out - eases burden for contractor.

-Contractor paid a small salary plus expenses, remaining income paid via dividends.

Popular in the past, this option was viewed by the government as 'tax avoidance'. New legislation introduced in the budget 2007 means that it's now looked upon as blatant 'tax evasion' for workers Inside IR35.

If you are deemed employed, this option should no longer be pursued.

Employee Benefit Trusts (EBTs)

Once an attractive option, the 2002 Pre-Budget Report announced immediate legislation to counter the avoidance of Tax and National Insurance contributions (NICs) through the abuse of EBTs.

Contractor works under company receiving basic salary, usually 20-30% of contract value, with balance paid into an offshore trust from where it is loaned back to the contractor.

Loan is in foreign currency so avoids IR35, taxation and NI.

HMRC has now closed the loophole on this scheme and EBTs can no longer operate.

Tax relief is now only allowed on PAYE payments made by the trusts, i.e. the lower salary figure, and not on loan.

The HMRC Anti-Avoidance Group has set up a team to project manage these cases to ensure that the tax outstanding is collected systematically and consistently.

Foreign Loans

Foreign loans are a legal means of "avoiding" Tax and National Insurance, however Gordon Brown announced in his budget on 17th March 2004 the intention to introduce a scheme which will force any Company setting up and marketing "tax avoidance schemes", to register with the HMRC.

As with most tax law, the measures are not at all clear. For example who defines "the obtaining of a tax advantage"? Presumably anything we do which does not involve us paying the highest amount of tax possible could be covered by this? The penalties for not registering or notifying will be up to £600 per DAY.

-Loans made to contractors in foreign currencies and repaid (often at very low rate).
-Must be operated in conjunction with an offshore company, not taxed on profits.
-Offshore companies are scrutinized by HMRC and all dealings would be challenged and taxed as income if received by a UK resident.

In short, this tax avoidance scheme is under so much scrutiny that for the average contractor the hassle and risks involved are just not viable.

Offshore Schemes

Offshore schemes are classified as any financial setup where income is moved outside the UK to avoid paying the host countries rate of Tax and National Insurance contributions. Payments are usually made as distributions, loans and dividends.

The Inland Revenue's Special Compliance Office is gearing up for a crackdown on offshore umbrella companies and other tax avoidance schemes designed for solo contractors caught by the unpopular IR35 legislation.

The HMRC have warned contractors not to rely on schemes they have developed to get around IR35, as they could crumble when examined.

All income generated in the UK by a UK resident must be declared - whether received or not - and is subject to IR35 criteria and taxation.

HM Revenue & Customs now have power to view details of around 100,000 UK-domiciled clients of Offshore Schemes.

Investors with undeclared offshore accounts are being urged to come forward and HMRC is proposing to offer reduced penalties for a limited period, although investors will still have to pay their tax bill plus interest for up to 20 years.

An offshore account is a high risk option.

ethics news

Stop Time Leakage And Save A Fortune

2008-05-24T00:03:00.000-07:00

Let's say you have 100 workers - employees or subcontractors being paid an average of 25 per hour. And let's say each one works 48 weeks per year and that each one of them loses a very conservative one hour per week based on a forty hour week.

That would be a loss of 120,000 per year, not to mention the opportunity cost of 4,800 billable hours that you could have billed elsewhere. If you then add to this the time taken by the foreman and administrator managing timesheets, it's hard not to agree that - for every 100 workers - you could be losing more than 150,000 through time leakage!. This equates to >2.5% of the annual labour cost. In an industry where there is often a 50/50 split between labour/materials and where net margins average 5%, 2.5% saving on labour would add 1.25% to your nett margin.

I'm not going to tell you that you can save that much or more - only you know how the figures add up for you, but I wonder what happens when you imagine yourself saving a small fortune?

TIME LEAKAGE - MONEY DOWN THE DRAIN

Let's take a quick look at what time leakage is and how it happens. Time leakage is jargon for 'time lost', and there are many factors that contribute to it, including:

Manually filling out time sheets

Faulty short-term memory - when filling out a timesheet at the end of the week. People's memories seem to err on the side of additional time

Foreman review and sign off of timesheets

Transport of timesheets to head office from remote sites

Administrators -

- entering time into payroll systems

- reviewing timesheets

- calling individuals and foreman to validate before finally signing off

Reconciling timesheets with trips to the dentist, sick time, holidays and other absences

Time recorded on site but not actually spent on the site

I wonder if you are a main contractor with many sub-contractors on a site and whether some of the causes of time leakage may currently be beyond your control. Or, if you're a sub-contractor, how some of these problems may be beyond your control as it may be that you don't always have your own foreman on site or you can't spend time on the site yourself as you have too many sites.

In either case, considerable amounts of money leak away with lost labour time.

In an environment where people and sites are transient, it's fair to ask:

Can this problem be solved?

How can I solve this problem?

How do I stop the leakage and save money?

When you think about it, it becomes clear that a solution would have to include the following capabilities -

Accurately track people entering and leaving sites

Cater for sites of all sizes

Communicate with head office automatically

Track clock-ins - in real time

Integrate data to payroll systems

Be reliable, robust and scalable

Surely, the technology exists... so why is providing this solution still such a challenge in the construction industry? Primarily for this reason: One size does not fit all.

At least, not until now.

Consider this: A business may be characterised by small numbers of people (1 to 5) going to many customer sites or by large numbers of people working on small number of sites. A business may have small sites or large sites. You may be a subcontractor or a main contractor that simply wants to control labour costs, or you could be a project management company tasked with controlling labour costs. You get the picture.

And you may already be aware that, thanks to advances in technology, all these disparate requirements can now be solved with a single solution.

YOU CAN CONTROL LABOUR COSTS ON CONSTRUCTION NOW

Experience shows that the key to how you can accomplish this is the front-end flexibility that allows multiple and differing requirements to be integrated to a single back-end application. And what if it also provided both main contractors and sub-contractors a single solution while still allowing you to be in control of your own labour data?

I'm not going to say that when you have the ability to gather (in multiple ways) accurate data in the field that integrates the information with the head office, you have the problem solved, because you'll know that when you experience the savings for yourself.

Large and small sites scan in using biometric devices that return data to the application in real time over the Internet or over the mobile network. No phone lines or broadband required. Such hardware can be easily moved from site to site.

Individuals travelling to multiple sites can clock-in using IVR (Interactive voice response) or using their mobile device.

Because each method communicates with a central system at head office (ideally a web-based solution that is visible securely anywhere you have internet access), which means that head office gets a complete, real-time, integrated solution that gives you control to end labour leakage, you can start saving a small fortune.

As technology advances you will see the construction industry change, and while some companies will wait until forced to change to stay in the game, others will take advantage of the opportunity to evolve, to get the competitive edge now and put an end to 'wasted time'.

Because this solution has only recently become possible - with the convergence of improvements in biometric technologies, mobile networks, voice over the internet, functional mobile devices, and the desire to cut costs - you may want to speak with people like you who are already enjoying the savings before you decide to arrange for an audit and discover how much you can save.

I wouldn't advise you to get in touch and arrange for a 'time leakage' cost savings audit until you are ready to start saving a fortune!

continuity disaster recovery

Payroll Outsourcing Company - Relieve Your Business From Payroll Processing Deadlines

2008-05-14T19:26:00.000-07:00

A payroll outsourcing company relieves your business of the tasks of processing payroll, issuing checks, withholding tax and benefit deductions, tax filing, or retirement services. It manages for you your payroll functions with great accuracy, such that you would almost always no receive any complaint with tax laws and regulations. In some cases, payroll outsourcing providers could even provide complete HR services, managing the entire HR department for you.

General payroll tasks include:

- Preparation and delivery of payroll
- Reporting of payroll
- Calculate of FICA, FUTA, SUTA, Federal and State withholding
- Filing of payroll taxes
- Audits
- Updating of employee files
- W-2, W-3 and 1099 forms
- Reporting of 941 and 940
- Garnishments
- Assumption of liabilities and responsibility for payroll taxes, reporting and audits

What exactly should you look for in your payroll outsourcing company?

- Flexibility and customization-optimum mix of services for your payroll should be met, allowing employees to have an unlimited number of pay rates, job distributions, automatic payments, deductions, and taxes, payments in multiple banks. Payroll outsourcing company system should allow payments made by employees to be delineated by financial institution, flat percentage, or repeating payment amount.

- Integration-payroll system must be able to integrate with your business' current accounting software, not the other way round.

- 401(k) Administration-system of payroll processing company system should allow the employee's contribution, employer matching contribution, profit sharing, and other fund sources to be distributed independently to different chosen funds.

- Time-off Benefit Management-payroll system should allow an unlimited number of time-off benefit plans for each employee.

- Reporting-payroll outsourcing company should follow the reporting system specified by the company.

Franchising

Payroll Outsourcing Providers - Entrust Your Payroll Tasks To Experts Online

2008-05-14T18:53:00.000-07:00

Payroll, a part of accounting transactions which deals with the process of paying employees, calculating salaries and employee benefits, and withholding money from the employee for payment of payroll taxes, insurance, garnishments and other deductions. Processing of payroll also involves the calculation of staff wages, commissions, as well as reimbursement for employee-paid expenses such as travel expenses. These processes are now carried out by payroll outsourcing providers.

Payroll used to be known as a basic business process, but actually, it is far from basic. Payroll has become more complex over the years. It has become time consuming, even confusing given the changing parameters that are used in the system. It has also become expensive to update.

These are the reasons why a lot of businesses now outsource to payroll outsourcing providers or a specialist payroll bureau, what was once guarded and considered as the sensitive function of payroll. This bureau is responsible for processing of wages, staff cover, technical aspects, IT equipment maintenance, procurement of stationery and maintaining the general confidentiality of this sensitive information. Sophisticated integrated database management techniques, which provide customized payroll administration, are utilized by the various payroll outsourcing providers or payment specialist bureaus.

Relieving a business of this major process allows the businessman to use his or her precious time to focus on running the business and how to make it successful. Moreover, outsourcing payroll providers will save the businessman more money-as there is no need for the business owner to upgrade equipment, update software, purchase new equipment and stationery, and pay staff wages and social benefits. All of these will be taken care of by the payroll outsourcing providers or specialist payroll bureau.

careersemp loyment

Nine Reasons Why Potential Clients Should Hire Your Bookkeeping Service

2008-05-11T07:23:00.000-07:00

My least favorite thing is 'selling' my services to potential new clients. It makes me uncomfortable. Then a few years ago, Beth my business coach said, "Linda, why not describe the reasons why someone needs good bookkeeping? Talk about that during your initial meeting." I was skeptical; I didn't believe it would work. She encouraged me to try the approach at my next meeting with a potential bookkeeping business client.

Well, I did, and much to my surprise her bookkeeping business advice worked! Not only did that client hire me, but also referred me to two colleagues. The approach I used - and still use - is simply to explain why it is so important to have good records.

Here are nine reasons why it's important for businesses to have good financial recordkeeping systems. Use one, two or all of them with your next potential new client. Whether your potential client is devising or revising their bookkeeping routine, remind them that the purpose of your bookkeeping business is to help them manage their business tasks.

#1 Reason for Retaining Bookkeeping Services: Monitor the Financial Success or Failure of Your Business

It's hard to know where you are going if you don't know where you've been. The same is true with your business - it's hard to know how your business is doing without a clear financial picture. A good financial system provides answers to the questions: Am I making money? Are sales increasing? How do expenditures compare to sales?

#2 Reason for Retaining Bookkeeping Services: Provides the Information You Need to Make Decisions

Evaluating financial consequences should be part of every business decision. Without accurate records and financial information, it's difficult to forecast the impact of any given course of action. For example, financial information gives insight as to whether or not it pays to hire another salesperson. Accurate records reveal the profitability of any line item.

#3 Reason for Retaining Bookkeeping Services: Obtain Bank Financing

The best time to seek financing is when you don't need it. The bank will want to see your income statement, balance sheet and tax returns for the most current and prior years, as well as projected statements showing the impact of the requested loan.

#4 Reason for Retaining Bookkeeping Services: Obtain Other Sources of Capital

If your business has reached the point where you need to take in a partner or investor, any prospective associate will want to become intimately familiar with your financial picture. Suppliers and other creditors may also ask for certain financial records. The source of this information is based on your day-to-day record keeping.

#5 Reason for Retaining Bookkeeping Services: Prepare a Budget

All businesses should use budgets for planning purposes. Budgets keep businesses on track by forecasting cash needs and controlling expenditures. When companies seek financing, bankers or prospective investors look for budgets as evidence of planning and stability.

#6 Reason for Retaining Bookkeeping Services: Prepare Your Income Tax Return

No matter what your business entity, you must file an income tax return and pay income taxes. With good records, preparing an accurate tax return will be easier and filing will more likely be done on time. Poor record keeping may result in underpayment or overpayment of your taxes. If your CPA prepares your tax return, poor records could result in higher accounting costs.

#7 Reason for Retaining Bookkeeping Services: Comply with Federal and State Payroll Tax Rules

If you have employees, you are aware of the myriad of rules and regulations relating to payroll taxes. Payroll tax must be deposited according to strict deadlines. Late payments of payroll taxes result in severe penalties, including jail time!

Payroll tax returns must be filed quarterly, and must reconcile with payroll deposits made during the quarter. At year end, you're required to give employees and the government W-2 forms, which must agree with your quarterly payroll returns. Sound bookkeeping practices, even if you use a payroll processor, will make compliance with payroll rules easy. Poor records will make it impossible.

#8 Reason for Retaining Bookkeeping Services: Submit Sales Taxes

If you collect sales tax, good records make it easy for you to compute the tax due and prepare the required reports. Sales tax must be deposited according to strict deadlines. Late payment of sales taxes can result in severe and unnecessary penalties and interest.

#9 Reason for Retaining Bookkeeping Services: Distribute Profits

If your business is a partnership, you will need good records to determine the correct amount of profits to distribute to each partner. If you're operating as a corporation, profits that you'll be paying out as dividends to the shareholders must be determined.

I encourage you to try this approach. It's one of the best pieces of bookkeeping business advice that I can pass onto you.

fundraising

Why Should You Outsource You're Payroll?

2008-05-03T14:31:00.000-07:00

Business owners who elect to outsource their payroll have less stress and more downtime than business owners that keep their payroll in-house. Owners have enough to worry about in running a business and performing payroll calculations and worrying about tax penalties shouldn't be one of them. Payroll services save businesses Time & Money.

Payroll services are especially popular with small-medium sized businesses. Typically, the payroll functions usually fall on the shoulders of the small-medium sized business owners. Owners can spend countless hours weekly on payroll calculations, but if you outsource to a payroll service provider, it can take minutes!

So, what should you look for when searching for a good payroll provider? First, make sure that their payroll service can actually meet the payroll demands of you're business. Owners often make the mistake of going with a company and then having to switch to another payroll provider. Second, make sure that you're payroll provider is dependable and accurate. This will allow both businesses to function more efficiently and form a solid business relationship. Make sure to ask other companies who do business with them if they are happy with their service. Remember, make sure to ask at least three or four owners so you can gain more insight on exactly what they're reputation is.

It is truely perplexing as to why more owners don't use payroll services. After all, payroll providers often save companies time and money. Also, business owners already have enough on their plate as it is. My recommendation is that you start the search for a new payroll provider today. Let payroll services do their job so you're companies can do yours!

Franchising

Payroll Outsourcing

2008-05-03T13:10:00.000-07:00

Payroll outsourcing is a very common and growing practice these days. Payroll is an important business function that deals with the process of paying employees for services rendered. Payroll outsourcing can be defined as the accomplishment of a payroll task by some external agency. There are many reasons why companies outsource payroll, but the most prominent benefit lies in the fact that it often saves money. Basic payroll outsourcing services include calculating paycheck and tax obligations for each employee, printing and delivering checks, and providing management reports.

Every business owner knows that handling payroll can be a headache. Preparing payroll internally can cost valuable hours of employee time every pay period, and require expensive accounting software and training. Besides, the person handling payroll of an organization internally needs to keep up to date with changes in personnel, deadlines, and tax requirements on an ongoing basis. Payroll outsourcing is an affordable way to take away these burdens, because it is a time-saving and cost-effective alternative to internal payroll processing.

Payroll actually commences with the worker signing up with a company. A typical payroll report contains items such as gross hourly wages and gross salaries, bonus payments including stock given as a bonus, overtime pay, severance pay, per diem and travel allowance, and contributions to deferred compensation by employees.

Today, payroll outsourcing is a vital part of an organization's payroll and benefits functions. This will improve employee satisfaction and enable the organization to focus its assets on mission-critical areas. The market for payroll outsourcing services is competitive and there are a number of key points, such as speed, accuracy and ease of use, to consider when opting to use a payroll company.

Though payroll outsourcing may prove highly valuable for many organizations, it also has many drawbacks. It is essential that every company precisely assess its requirements to determine if outsourcing is a feasible alternative.

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Payroll Outsourcing Costs

2008-05-03T12:45:00.000-07:00

Payroll outsourcing costs are negligible when compared to the expenditure incurred in processing payroll with in-house staff. According to statistics, 40% of the entire administration time of a small business concern deals with payroll processing. Payroll outsourcing is a cost-effective solution for proper profit management. The cost of outsourcing is based on the specific services provided. Most of the companies offer some basic packages as well as advanced versions. The price of the package varies with the added advantages.

Payroll outsourcing costs depend on the printing of checks also. An extra amount is charged for printed check delivery to the client. In addition to a basic account charge, the cost of a check on average is $2 to $3. Each additional function is charged nominally. A small business will likely have to pay $3 to $5 per check for a full service solution.

Normally the charges are calculated from the figures given to the company when setting up the account. The charge varies with the number of employees. Some packages offer a slab system for the number of employees. For a particular slab, only the period of service is charged. If the number of employees exceeds the basic slab, then another charge package has to be subscribed to. Larger employee concerns can avail of attractive cheaper packages.

The packages cost starts from $10. An average cost-effective package costs $15 to $30. Survey reports state that an average business enterprise spends at least $59 on payroll costs. Quarterly charges are also collected along with the usual charges. Customers can opt for annual plans which generally cost around $199-$299.

Many companies offer payroll processing. Very often, these companies also offer free trials. The selection of the service provider must be done only after a thorough evaluation of the market and comparison of competitive prices and services.

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Certified Payroll Software

2008-05-03T12:15:00.000-07:00

Certified payroll software is a computer program that makes certified payroll reports, statements of compliance, "no work performed" payrolls and general or custom-designed plan benefit reports. Certified payrolls are payrolls generated under Davis-Bacon act. It requires the submission of weekly payroll report beginning with the first week that a company works on a project and for every week there after, till the work completed. These payroll reports are to be signed and must have certificate that the information given in it are true and correct.

The major certified payroll reporting forms used are 'United States Department of Labor form WH-347 Payroll Certification' and form 'WH-348 Statement of Compliance.' Although most states follow these forms, some states require specialized forms, which are mostly derived from these forms. The companies are required to submit "no work performed" payrolls whenever there is a temporary break in work. Certified payroll software programs automate all these tasks by generating completed payroll reporting forms which are ready to be signed and mailed. Most certified payroll software programs read data directly from QuickBooks company file. So copying or re-entering of data is not required.

The payroll report generated by certified payroll software programs must produce information about the following. Project and contractor/subcontractor information with address, employee information with name, address and social security number of each employee, withholding exemptions, employee work classification, hours worked with date, total hours worked by employee, rate of pay/cash fringes, gross amount earned on this job/all jobs, deductions and net wages paid for week.

Certified payroll software program saves time, improves accuracy and minimizes double data entry and other input complaints due to human errors. When purchasing a certified payroll software it should be noted that it deals with the payroll forms of your state. The cost of certified payroll software is defined by its use in the particular field and the number of employees working and the company providing it. Every contractor and subcontractor is required to keep their own certified payroll reports and other basic records which are inputted to certified payroll software programs for at least 3 years after the project is completed.

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Payroll Management - Start Planning Now

2008-05-03T11:50:00.000-07:00

Payroll management is an issue that is never too early to start considering. Obviously, in the early stages of your business, your payroll management will consist of paying yourself. As your business grows you will have to concern yourself with compensation for you and your employees.

Payroll management in a business that has employees requires planning for salaries and hourly wages. There will also be payments to subcontractors for technical and sales related services to consider. You will eventually become too busy to do it all yourself and you will need help.

Before you get to the stage where you need to hire additional help, it is a wise strategic move to think about your payroll management needs and plan accordingly.

Payroll Management Issues
Salary versus hourly wage
Bonuses and commissions
Compensation Package - vacation pay, time off, sick days, holidays
Employee Benefits - health care, dental plan, pension
Insurance - Disability and Life

A common aspect of payroll management that gets overlooked is payroll taxes. No matter what you do, you can't avoid these for either yourself or your employees. The employer's portion of payroll taxes will cost you money. Effective payroll management takes this expense into consideration from the start.

The Bottom Line on Payroll Management

Payroll management is an issue you need to think abut before you have employees. Even if the payroll roster is just you, your business will still have payroll expenses. It is never too early to start thinking strategically about your payroll management. You should be formulating a plan for handling employees and subcontractors and the expenses that come along with them, long before you actually need them.

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Payroll Services

2008-05-03T11:22:00.000-07:00

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-?is 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, dependant 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.

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Payroll Tax Outsourcing Services

2008-04-30T23:53:00.000-07:00

Numerous outsourcing companies now function to provide payroll tax outsourcing services to corporate clients with regard to payroll tax. Payroll tax is a regressive tax and more expensive than income tax, which pays for two social insurance systems namely Medicare and Social Security.

The payroll data is to be given to the payroll service provider. This can be done through a telephone call, fax or via the internet. Payroll tax outsourcing will eliminate workload in the areas of processing payroll tax and related aspects. Experts at the outsourcing agencies will manage monthly or quarterly employment tax reports and submit them correctly and on time.

Payroll tax calculations will be different according to the area and the structure of the firm. 940 and 941 tax issues require a complex understanding of the differences in the revenue code between these taxes and personal income tax. Most of the payroll services offer the option of filing state and federal payroll taxes for your business. Several avenues of tax relief exist in both federal and state tax codes. The services provided by the outsourcing company also include finding these avenues and reducing your overall tax. The companies balance QTD/YTD deposits to liabilities to ensure all your payments are accurate.

Payroll tax outsourcing service providers also give guarantee for their work and assume the penalties that may arise in the wake of incorrect tax calculations. Most of these companies offer the support for payroll tax data extraction, payroll data migration, wage garnishment distribution, and payroll tax filings. By outsourcing your complete payroll tax you can have a risk free compensation at market rates for your tax funds awaiting payment, tax payment management and no penalty payroll tax payment.

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Free Payroll Software

2008-04-30T23:19:00.000-07:00

Finding free payroll software can be a tough task. It is also not an ideal solution for most businesses. The ideal payroll software helps companies to easily process employee payrolls. Tracking of tax withholding, vacation time, over time and other benefits are some of the other important features found in most payroll software. When you opt for a free payroll software, most of these features might be lacking and some free software come with pop ups and other product advertisements.

If you are a first time user of payroll software, then it is a good idea to use free payroll software as it gives you the much need information regarding the software and its worthiness in your organization. Most free payroll software will have certain basic features and you will be asked to pay certain amount to use the other features. The basic idea behind free payroll software is to attract you to the product.

Almost every supplier of payroll software offers a free trial version of payroll software package. This gives the business owner a chance to use the software package for free and to identify whether the software is able to meet the demand of the company. At first, you can download, install, and try the payroll software package. This free trial version in most cases will be far more superior than the free payroll software is. Most free trial versions opens up all the features to its customers. If it you find the software suitable, then you can choose the service of a good software solution by paying an amount. Sometimes, the monthly charge can be as little as $20.

Free payroll software is often hunted by small business establishments as they do not need all the state-of-the-art facilities. But, most free payroll software providers do not give any service and this can sometimes create tough situations for its users.

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How Do I Use Money For Payroll And Tax Returns?

2008-04-30T13:38:00.000-07:00

How do I do payroll?

Payroll accounting represents the most complicated record keeping and bookkeeping task that small businesses do. The only other activity that even comes close is preparing a corporate tax return.

Payroll accounting and recording requirements are extremely onerous. When you do your own payroll, you have to meet certain federal requirements for categorizing, tracking, and recording the amounts you pay your employees. You will have a series of only slightly less onerous requirements for reporting the amounts that you pay as an employer. State and local agencies also get into the payroll accounting process by requiring you to report wages and salaries paid and then pay taxes on those salaries and wages. These requirements, of course, vary by location.

For these reasons, we suggest that you pay an outside agency or individual to do the work. This might sound like shirking responsibility, but it is a very common decision for small businesses to make. This service often isn't expensive-as little as $20 a month.

But it saves you an enormous amount of work by greatly simplifying your financial record keeping. If you choose to prepare payroll yourself, and this might make sense if you prepare only a handful of checks a year or if you have only one or two employees, you can do so using the Money program. Before you begin, you must obtain the appropriate payroll preparation instructions from both the federal and state government. Call the local branch of the Internal Revenue Service to get the federal payroll preparation instructions, otherwise known as Circular E. The Circular E booklet will tell you exactly how to prepare payroll checks-including the handling of payroll tax deductions and later payment of withheld amounts. You also need to locate and read the equivalent state payroll preparation instructions. With this information, and a bit of work, you can prepare payroll checks for employees. The Category field-actually the Split Transaction dialog box-lets you show your employees' gross wages and tax deductions.

How do I prepare business income tax returns?

Using Money for business accounting greatly simplifies the preparation of your annual income tax returns. In essence, all you need to do is prepare the report that summarizes your profits and losses and then transfer the information from this report to your tax return. Sole proprietors report only profit and loss information on their Schedule C or Schedule C-EZ return, for example. So Money's profit and loss statement provides every bit of data you need.

If you do business as a corporation, you are required to provide some balance sheet data as a part of the corporate tax return. To provide this data, you will also need to prepare a net worth statement as of the last day of the year.

Prepare your tax return using the Profit and Loss Statement report and a balance sheet, or Net Worth report. Don't export data from the Money program directly to your business tax preparation program though. While exporting might seem to be a time saver, it actually hides some of the data that gets plugged into various input fields on your return. This hiding of the data and the data transfer can sometimes produce errors.

For this reason, you are better off using the reports as data sources and then entering this information by hand into the tax preparation program. Fortunately, for a small business there isn't much data entry to do. You will have only a few numbers to move from the Money report to the tax preparation program.

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Payroll Services Outsourced

2008-04-30T12:59:00.000-07:00

Some companies may opt for outsourcing their entire payroll services. They may look for vendors either within their country or offshore which would be very cost effective. So the company may look at the option of funding the payroll services. Funding this process can be done by either:

1) Outsourcing

2) Downloading some payroll software

The software for payroll processing helps in calculating the money due to employees along with maintaining proper records. This can help in streamlining the entire process, making it less time consuming. The software enables to calculate the state deductions and other important tax season forms. This would also reduce errors to a large extent. No two businesses are alike so the solutions should be provided based on the business and the strategies.

Outsourcing would enable the company to save on infrastructure cost of having a separate department for accounts and also on skilled labor along with specialized training costs. Outsourcing would also help the company in cutting down on their costs on administration and focus on core strategies of the organization because any organization aims to grow ahead rather than to get struck with day to day operations. Payroll services outsourcing is like having your own team of experts who can handle all the customers like how you would have.

Payroll can be weekly, monthly, bimonthly or once in 6 months as ell depending on the strength of the organization.Of late there is a growing demand of constant improvement in the techniques of payroll processing which aim to smoothen the functioning of the organization.

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Payroll Outsourcing Services

2008-04-24T10:23:00.000-07:00

Payroll outsourcing services are the services provided by payroll outsourcing companies to their clients. Payroll outsourcing includes receipt and analysis of payroll data, reporting the payment of payroll taxes, issuing payment and reports to employees and reporting data to end user.

Payroll outsourcing services provide a ready solution in areas that are critical to the success of a business. They undertake the back office accounting and payroll work for all their clients and create a local presence by providing routine consultation and tax return. Payroll software provided by the outsourcing company will enable you to transmit your payroll data securely, easily and efficiently through the internet. You can view a pre-check register to verify that the payroll is perfect at every time. The software also helps you to input data and receipt online.

Services offered by different companies vary slightly. The services generally provided are full service payroll administration which takes care of direct deposit, tax filing, job costing, payroll updates, deductions, advances, W-2 filings, keeping track of tax law and implementing the necessary changes. A responsive, flexible service provider can in every way be a valuable associate for any business.

There are online services that provide additional options like web access, which allows you to view information and even make changes to such information online. The management and employees are allowed to access to view their benefits plans, enroll in benefits, read policies, and make changes to current data.

The greatest advantage of payroll outsourcing is that it allows the management and employees to focus on the business and make improvements, instead of wasting valuable time in tiresome work. Payroll outsourcing services are a great boon to companies which have split from the parent company and are just building up a payroll department.

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Payroll Outsourcing Solutions

2008-04-24T09:40:00.000-07:00

Payroll outsourcing is the transference of in house performed functions to a third party. The tedious administrative work associated with in house payroll processing of a company is eliminated, allowing the staff and management to spend time more constructively.

Payroll outsourcing is ideally entrusted to companies which are reliable and have an expert team at the centre, who can provide solutions for any problem that may arise. The expert advice ascertains an international working standard. It avoids payment of penalties and unnecessary tensions like reservist claims and salary increment. Also the cost for software licensing, maintenance and upgrading processes can be nullified with outsourcing.

Many outsourcing companies function now to provide payroll outsourcing solutions. Selecting the right one must be done vigilantly to avoid pitfalls. The domain expertise and client testimonial have to be carefully checked. An evaluation based on the comparison of the outsourcing methodology of different venders, ensures the focus of the outsourcing.

Payroll outsourcing solutions generally include payroll processing with post processing accounts and reports. For a total payroll solution, it must include data/time capture and entry, disbursements, special services, and exception resolution. A dedicated call center also must be included to ensure customer support. In addition to all these, many outsourcing companies are offering 24/7 helpline assistance.

Outsourcing solutions are economical and promise full value for the money spent. When selecting an outsourcing solutions provider, it is important to ensure maximum security in dealings. Payroll outsourcing solutions are provided online also. In such cases, encryption technology and password protection are important.

Payroll outsourcing companies offer many attractive benefits at a reasonable cost with increased proficiency. Customer satisfaction is guaranteed with anytime assistance. The product also has more value, since the risk of tax levy and penalty is lessened through electronic payment.

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Payroll Software Companies

2008-04-22T21:30:00.000-07:00

Payroll software companies are companies that provide payroll software programs. Payroll software programs are written computer programs which are meant to handle payroll and tax filing activities of a company either small or big. Payroll software programs from these payroll software companies make your payroll reporting and tax filling much easier and reduce the time lag. Payroll software companies provide payroll software programs which can be used on weekly, biweekly or monthly manner.

With company to company, the cost of payroll software product varies. The cost depends upon the payment duration, number of employees, the state to which the consumer company belongs and the tax procedure. Although the initial cost of these software programs are much higher, in the long run it saves money.

Most of the payroll software companies upgrade their payroll software programs annually, thus making it more accurate and user friendly. The functionality of payroll software program provided by the payroll software companies are measured in terms of depth and breadth of features and services it provides. There are ratings for all these companies which are measured in stars (4 stars, 5 stars etc) and are based on customers' opinion.

Most payroll software companies provide free demonstration of their products in their online service. Software from many payroll software companies also calculates tax according to the tax rate of the state. Almost all companies have different software programs for different states; this is in order to meet the changes in tax rate and tax laws. The cost of online payroll software ranges $20 per month to many hundreds and thousands per month. Some payroll software companies provide free up gradation of their software for a definite period of time to cope with the new tax laws and changes on tax forms.

Some of the payroll software companies are Pensoft, Check Mark Software Inc., Topsys Solutions Pvt Ltd., Page Computer, California Cellular, Buy.com, Thenerds.net, and Digitally Unique. All most all payroll software programs from payroll software companies follow Windows operating system.

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Payroll Processing Outsourcing

2008-04-22T20:47:00.000-07:00

Payroll processing outsourcing has become a popular option for companies seeking payroll solutions. In payroll processing outsourcing, a group of expert payroll accounting professionals offer exceptional services for proper management of the payroll according to company demands. Reliable and timely delivery of payroll helps the companies to concentrate more on the growth of other departments like research and development of the product and marketing. It relieves the company staff from the hassles of in house processing and processing soft wares.

Payroll processing outsourcing ensures on time payment schedule even with last minute alterations. The payroll processing includes management of starters, leavers, SMP, SSP, pension contributions, court order payments, with accurate payroll reports for accounting. It also takes care of the employers' obligations to the IRS, with prompt filing of taxes. The payroll processing companies handle the forms and figures, remind of the deadlines, and take care of even the minor details of payroll processing.

Payroll processing outsourcing tackles each step in the processing of employee payroll. Proper planning and scheduling avoids confusion and guarantees expert service. Payroll processing services are usually flexible by nature and integrate themselves into the business smoothly and work to the advantage of the business establishment. Employees are allowed anytime access and benefits like payroll debit card. Payroll processing outsourcing also reduces workload in areas such as new hire reporting and certification of the payroll.

Payroll processing software generates payroll as soon as the data is entered. Then the local, federal and state taxes are processed, deductions are calculated, and details are filed. Taxes are deposited in the appropriate government accounts. The payroll checks are then delivered to the company or to the employee's address. Payroll processing outsourcing is done online as well. The Web based method is a user friendly one which helps to print out the checks. Security of the system has to be entrusted to passwords and encryption technology.

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Payroll Tax Software

2008-04-17T12:24:00.000-07:00

Payroll tax software programs help you to deal with your payroll taxes and take benefit of any unknown deductions, credits and exceptions that you may otherwise be ignore off. The greatest advantage of using payroll tax software is speed and accuracy with modest human resource utilization.

There are a number of payroll tax software products available in the market and most are designed to handle various tax forms and rates. Some provide tax saving tips with IRS (Internal Revenue Service) forms and tax reference library, in some you can directly fill on-screen IRS forms, some has single user and multi-user versions, some provides vendor reports, earnings reports and unemployment reports which makes payroll data entry easy. Almost all payroll tax software programs have the alarming option to informing you the right time to file the tax. The software also helps you in scampering through the numerous tax calculations.

Many companies have incorporated the tax rates in their payroll software programs which enable calculating and printing payroll and tax amount simultaneously. Thus these software programs assure that your business is in correct direction in terms of tax and payment. Payroll tax software programs are upgraded annually to meet the new tax laws and changes on tax forms. Thus you have to make sure that you use a payroll tax software which is not outdated.

Payroll tax software programs can be purchased either directly or from the internet. While choosing a payroll tax software, make sure that it is ideal for your business. Go through them and see that they deal with the tax rate of your state or locality and it is enough to handle the tax problems of you and your employees. Payroll Tax Software a program is best used along with a certified accountant. This is because the program's estimates are based on the information put into it and an accountant or a bookkeeper is the best person to enter data into it.

Source: http://ezinearticles.com/?Payroll-Tax-Software&id=268614
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Payroll Software

2008-04-16T10:37:00.000-07:00

Payroll software is a tool to manage all the accounting needs of companies, small businesses, multinational corporations, non-profit organizations, and other institutions. It is the easiest way to calculate timely and accurate processing of employee salaries, bonuses, tax withholdings, wages, and tax deductions. Payroll software is also the best choice to keep track of weekly, monthly, quarterly, and annual pay checks and payroll tax-related forms. Some payroll software makes use of the existing applications or can be customized into your available environment. Common benefits of payroll software are its reliability, flexibility, savings, ease of use, and convenience.

After entering the initial information, payroll software automatically calculates figures and produces pay slips. It is simpler, accurate, and quick and most of them are user friendly. By means of payroll software, you can also reduce the effort and time of manual processes. Payroll software holds many features. It stores appropriate information on each employee, withholds tax based on place, performs electronic fund transfers, improves management reporting, and reduces paper check security issues, administrative overhead and payroll production costs. Besides accuracy and time saving features, it helps to track advanced information about overtime paid, vacation days, garnishments, union dues withheld, child support payments, holiday pay, and much more. Moreover, it is capable of preparing and printing W-2 information

Most payroll software includes modules for job cost, human resource systems, time billing, and general ledger. Today, a wide selection of payroll software packages is available in the market at different price levels. Leading suppliers of payroll software includes Peninsula Software of Virginia, Inc., and Sage Software SB Inc. Choosing the best payroll software package is a difficult task as there are a large number of companies offering payroll software. Always implement a free trial version of the software before purchasing payroll software. Make sure that it contains all the latest tax updates and it conforms to your state tax laws.

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Small Business Payroll Software

2008-04-15T10:16:00.000-07:00

Small business payroll software handles payroll and tax filing in small business establishments. A small business company is defined as a company with 500 or less employees. Small business payroll software simplifies tedious tasks of documenting, figuring and executing a payroll; on a weekly, biweekly or monthly manner. The cost of payroll software depends on the payment duration, number of employees working, the state where the company is situated and the tax procedure followed by the state. The features in the software can also vary due to the above said reasons. Small business payroll software programs save time and manpower. Even smaller companies have full time employees only for executing payrolls, by the use of small business payroll software; they can be used in other appropriate posts.

Small business payroll software programs are continuously evolving and are becoming more and more user friendly and more accurate. The usefulness of small business payroll software is measured in terms of its features and services. Good small business payroll software will have several options and will have the flexibility to meet the growing needs of a company. Though there will be some initial time lag in inputting data, the software minimizes it with its fantastic speed of calculation. It also warns us about multiple entries of same data. The only error possible is human error which comes at the time of data inputting.

Small business payroll software can be purchased directly from the market or from online service providers. Most software makers allow you to compare their product with other products on their Web sites. Many small business payroll software providers provide a free trail, which gives you a chance to use the software and see whether it meets the needs of your company. The cost of payroll software programs vary considerably from $20 a month to many hundreds. Many small business payroll software companies assure you service and up gradation for a definite period of time.

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Payroll Time Clock Software

2008-04-14T08:46:00.000-07:00

Payroll time clock software keeps track of time and attendance information of an employee in an accurate way. By utilizing the payroll time clock software, you can eliminate the use of paper time cards, handwritten records, and badges. It helps to generate a wide range of efficient reports including attendance, overtime, payroll policies on start and end times, gross pay, holiday, and sick time. Workers can punch the starting time and end time, straight from their own desktops by using a networked PC. Another notable feature is that it handles multiple worker schedules at the same time. Almost every payroll time clock software packages provide standard qualities such as versatility, adaptability, and flexibility. The installation procedure of this software is very easy and simple.

Certain payroll time clock software has features such as employee schedule, time clock maintenance, prevent unscheduled punches, employee notifications, managers console, schedule exceptions, job time, and processing reports. Payroll time clock software saves time, money, improves punctuality of the employee, and makes payroll calculation a quicker process. Security to avoid tampering with computer clock time is another highlight of the software. A number of payroll time clock software packages provide self service information, configuration options, and security. Most payroll time clock software can run on any computer and have user friendly features.

Nowadays, most business organizations and business owners are utilizing the service of payroll time clock software. A wide range of payroll time clock software packages are available in the market at different price levels. A simple mistake in the payroll calculation can cause serious problems, so it is better to choose the best software package that fulfills the need of business owners. Most providers of payroll time clock software also offer a free trial version of the software package. This is an ideal opportunity for users to identify the worthiness of the software and its adaptability to your environment.

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Payroll Time Clock Software

2008-04-14T08:44:00.000-07:00

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Payroll Tax

2008-04-12T00:20:00.000-07:00

If you are about to start a new business, organization or company, you should definitely have an idea about payroll tax, how to do calculations and why they are important in the USA. Payroll taxes are a major source of tax revenue for state and federal governments, generating funds for unemployment and welfare checks.

Pay roll tax is the Federal and state taxes that an employer is required to deduct and pay to the government on behalf of employees. These include state and federal income taxes, social securities and Medicare taxes that are withheld from the wages of an employee. The employer has to contribute to these taxes, the same amount that is deducted from the employees. Payroll tax also includes the state and federal unemployment taxes paid by a company to the government; this means employers have to pay the State and Federal unemployment tax.

In the United States, payroll taxes pay for two insurance systems namely Social Security and Medicare. Social security that comes under payroll tax includes insurance policies for retirement, disability, hospital, workers' compensation and many more. Medicare is the insurance policy that covers elderly people, mostly above 65 years of age. Being a regressive tax, it is much more expensive that income taxes. Like any regressive tax, the payroll tax takes a large proportion of income from those who draw low incomes.

The important feature of payroll tax is that it requires the employer to contribute. For example, if 7 percentage of an employee's income is withheld for social security, the same amount has to be put in by the employer for the payroll tax. This means that self-employed people will have to bear the burden of the entire tax. These are calculated and deducted according to state and Federal tax structures.

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Filing Payroll Taxes

2008-04-11T23:40:00.000-07:00

An organization has a large number of employees who receive a salary for the work they do. Some employees may be paid a stable salary while others are paid on the basis of productivity or the number of hours worked. All organizations having employees are in charge of paying payroll taxes. Payroll taxes are all the different forms of employment taxes paid by the organization and covers Federal and state income tax, social security and Medicare taxes and federal unemployment tax. Payroll taxes are deducted from the employees pay. Filing pay roll taxes becomes an important task in order to maintain proper record and pay taxes regularly.

There are a number of forms and documents that need to be filed with the IRS. Payroll taxes involve large number of deductions and exemptions that are to be taken into account during the filing process. First, pay roll taxes need to be calculated accurately and each of the employees is required to fill out a form know Form W-4. The form helps to calculate payroll taxes. The form is used to calculate federal and state income tax to be deducted from the salaries of the employees. Social security and Medicare deductions are also considered and the amount to be paid is calculated. Both the employer and the employee pay the calculated amount.

The organization must also file Form 941 with the IRS. In case of agricultural employees Form 943 needs to be filed. The amounts mentioned in Form 941 should be in accordance with the amounts given every month using tax coupons or the EFTPS. At the end of the tax year, Form 940, which is basically an information returns form, is required to be filed with the IRS. W-2 forms are also required to be filed with the IRS.

The IRS has its own website which provides all the information related to filing of payroll taxes. The rules and regulations specified on the IRS website must be strictly followed.

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The National Minimum Wage

2008-04-11T01:58:00.000-07:00

The national minimum wage is something you need to consider when hiring employees for your company. A national minimum wage is in place to ensure that workers can count on having a minimum pay rate for the hours that they work. The rates are set by the Low Pay Commission that has been in operation since 1999, and these rates have risen annually. In addition, these rates are enforced by a network of 16 teams of National Compliance Officers for Minimum Wage and a telephone hotline that your employees can call in if they are not getting their National Minimum Wage. It is extremely important for every employer to know what the National Minimum Wage is and who is entitled to earn it.

The Three Minimum Wage Bands
There are three rates, based on an age group for the National Minimum Wage. Why three? There are three different age groups, so that older employees are not being taken advantage of, and to ensure that employees are earning enough to make an acceptable living.

The first age group is for adults over the age of 22 and they should be receiving no less than £5.52 per hour. There is an accommodation offset for all employees who are working out of town and you are providing their accommodation. This rate is £4.30 (or £30.10 per week). This is a daily rate, and should be added to their pay packet for each day that they work out of town for you.

The next age group is called the development rate. This is for people who are between the ages of 18 to 21. This age group should receive no less than £4.60 per hour. This age group should also receive the accommodation off set for out of town work where you provide the accommodations. Once these employees turn the age of 22, you are required to give them a raise to put them into the first age group's National Minimum Wage.

Depending on your location and when your employee's birthday is, until they are passed the age of compulsory for school, and reach the age of 18, they are entitled to £3.40 per hour. Again, as soon as they reach the age of 18, they must be given the development rate.

Complaint? Pick Up the Phone!
If you are an employee that is not making the National Minimum Wage for your age, you can fill out a complaint form that is available online or call the National Minimum Wage hotline. The complaint will be looked into and if the situation needs to be corrected, it will be.

If you are an employer, you need to make sure that you are paying your employees the National Minimum Wage. By doing so, you also follow the law and will not be subject to a complaint, or worse, charges.

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Payroll Services Makes Payroll Management Simple and Easy For You

2008-04-08T04:27:00.000-07:00

A payroll service company can help executives and business owners manage the administration portions of their businesses. These companies can manage administration duties, such as payroll, to ensure that managers spend time on productive and revenue producing activities. Businesses can contract with a company that specializes in administration management.

Many business owners spend an inordinate amount of time dealing with payroll and other administrative related issues. Lots of organizations hire employees who deal with administrative related issues. However for many organizations the overhead costs can be very high. Other organizations do not have the employees or expertise to deal with payroll related issues and to ensure you are in compliance with all state and federal law. Many choose to contract with companies who will handle your unique concerns. The management and owners can focus on building the company while the contractor will ensure that your business is in compliance and running smoothly.

Many companies can provide a variety of services for small to medium sized businesses. Some payroll online companies can compile all of their data while others can offer phone, fax or internet transmissions. Some may allow you to easily fill out worksheets or the employees can enter the information using the internet. These organizations can also process the paperwork and print checks using banking routing numbers and other account information. If a company chooses, they may also offer direct deposit for the employees who will later receive a stub, confirming the distribution of funds. The stub will document the gross and net pay, withholdings, deductions and other personal information. A lot of companies can print your checks and reports, or return them to you for distribution in your own office.

Direct Deposit allows employees to receive funds into checking, saving, trust or mutual funds. This option can be especially good if the employee travels a lot because he does not have to go to the bank every time to deposit the checks. You also do not have to sign any checks if the employee has direct deposit.

Finally, a company can provide payroll reports for all companies. Each report will have pertinent information such as the name, social security number, sick and vacation hours, tax status and other information. Most will either deliver all the important documentation or you have the option to pick it up yourself. Many companies can also manage and update time and attendance register, create employee manuals and management checklists. You can manage the details better and create best practices for human resource information system.

Lots of payroll companies also help other companies prepare their takes. Some of them can manage your taxes. They can automatically withdraw the taxes due from your banking account, and pay them on the requested due date. They can pay all federal, state, and local taxes. They can produce and file W-2 and 1099 forms. Payroll service organizations can ensure that small and medium sized companies are in compliance with federal law and these are properly managed. If you are a small or medium sized firm, you may want to consider partnering with a company that can manage your payroll such that you are relieved from the payroll work.

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Payroll Service - Online Solutions For Payroll Management

2008-04-05T23:33:00.000-07:00

Most executives and business owners know that a successful business must be managed well. However, administrative duties such as salary management efforts keep managers from being more productive, and dedicate more time for revenue producing activities. Businesses can be relieved of the hassles and technicalities by contracting with a company that specializes in payroll management.

Many business owners spend large percentage of their time administering salary related issues. Large organizations at times hire coordinator or a team of individuals to deal with salary related issues. Many times, the overhead costs can be exorbitant for some companies. Other companies do not have the man power or payroll expertise to deal with payment related issues and to ensure you are in compliance with federal law. Many opt to contract with companies who will handle your salary related issues. The management and owners can focus on building the company. It will ensure that your business is in compliance and running smoothly.

Certain companies will administer your paymaster management needs for you and meet business compliance issues today and in the future, ensuring your organization succeeds in the competitive business environment. Most simply, the company gathers the salary information and transmits it via e-mail, internet or fax. Once the company receives your information, they can manage your checks and reports. For a fee, many payroll service organizations will manage disbursement of payroll checks, direct deposit stubs or payroll debit card. Payroll administration centers integrates payroll service processing and tax filing, HR information management, employee benefits, time and attendance reporting, web-based self-service and much more. Many can also manage and update time and attendance register, create employee manuals and management checklists. You can manage the details better and create best practices for human resource information system. A lot of companies can print your checks and reports, or return them to you for printing in your own office.

Many web based payroll companies allow you to enter salary data remotely through a personal computer. Via the web, you can check the paysheet statistics for accuracy and then send it for processing. All you would have to do is to log into the system. Most good web based systems are user friendly. You can enter salary and employee information and submit it for processing anywhere you can access the internet. This is especially great for those individuals who travel for business.

No one goes into business to experience the joy of tax filing. No business owner looks forward to wading through the mountains of paperwork related to salary and employee benefits. Certain companies can keep you in compliance. Many salary management companies can help you with tax paying and filing capabilities, which mean that your taxes are paid promptly. Most can help you with Federal, state, local and unemployment tax liabilities.

Since your company is unique you will want a payroll system that fits the way you do business. You should work with a company that can offer customized tailored solutions. There are companies that can tailor this system to suit you best.

Source: http://ezinearticles.com/?Payroll-Service-Online-Solutions-For-Payroll-Management&id=1087002
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Online Payroll Services Revitalizing the Work Place

2008-03-31T12:46:00.000-07:00

Years ago, when people thought of the payroll process, they thought of the traditional, antiquated idea of long lines standing in front of a mechanical punch clock, waiting to get their cards stamped. Beyond that, the typical worker lived in fear of mechanical failure or human error resulting in lost paychecks. Likewise, businesses were forced to dedicate extensive resources towards a standing payroll department, with all of the associated overhead, paperwork, and general hassle of a large office. Luckily, for most people, those days of waiting and worrying are over with the advent of online payroll services.

Today's business world relies more and more on salary transferred or payment made online. The benefits for the workers are numerous. Using an online system, workers will find that their pay checks come faster with fewer headaches and hassles. Given the streamlined process, there are multiple points at which mistakes can be caught and corrected before affecting their paychecks. Furthermore, online remuneration process offers the chance to workers for easy access tax and salary information without the time and paperwork associated with antiquated emolument systems.

Finally, and perhaps most importantly, some online remuneration management companies can work with employees in setting up direct deposit accounts. This allows employees to have their paychecks deposited straight into their bank accounts. They can do away with the travel time associated with waiting for checks to be cut in the on-site payroll department and then taking those checks to the bank. Some innovative companies are even offering payroll debit cards, which sends the paychecks directly to a debit card, allowing the employee to spend the much needed cash that very day.

Beyond that, the list of benefits available to the employer using an online remuneration service company is equally astounding. Gone are the days of an entire department dedicated to payment, overflowing with needless hard copies of paperwork. Outsourcing to an online remuneration management company can help employers easily produce new hire paperwork, unemployment applications, and end of the year tax information, literally saving hours and days for businesses looking to focus their energy on increasing revenue and customer satisfaction.

Some business owners may be reticent to dive into an online salary system due to concerns about safety. However, these worries are totally groundless. An upstanding, experienced payroll service company will offer your business secure websites, password confirmation systems, and an overall level of security that will meet or match any old paper filled payment medium. With streamlined reporting, employers can track their payroll funds at any point, from deposit to pay out. This attention to detail keeps you, the business owner, confident in your remuneration managing company and may even allow you to reevaluate how your business allocated funds.

Before selecting a payroll service company, it's important to understand the many exciting benefits and features associated with online salary defrayment services. The remuneration managing company that you choose can help you decide what type of service is right for you given your workforce and needs. At the end of the day, your employees (and investors) will thank you for switching over to the painless and cost effective world of online payroll services.

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Outsourcing Payroll - Online Solutions

2008-03-30T11:32:00.000-07:00

For any single person or department, if you have the duty of ensuring employees are receiving the correct amount of money in their pay packet; it can be a great burden of responsibility.

Poor payroll administration can take up a lot of time, resources and costs as well as allowing too many mistakes to occur. Many businesses are now looking for alternative ways to manage their payroll administration within their organization.

Reasons could be that current payroll management is proving too costly or simply the software that they are using has now become outdated or obsolete.

Outdated software can prove to be costly, not only financially, but to the employees time who manages the payroll administration tasks.

By integrating an up to date payroll management system, or in fact by outsourcing your payroll management, you could find that not only are you saving on costs, but you are also improving efficiency in the management of your payroll administration.

By using up to date online payroll systems you can:

Increase efficiency
Save time and money
Improve data management
Password protect information

Online payroll systems offer solutions which can enable your staff, as well as your management access to payroll information at any time.

Employer self service (ESS) and Manger self service (MSS) allow the option for people to access their own payslips as well as their personal information.

If a member of staff moves address, they can access their own password protected area and update their information. They can view their payslips online and even request their payslips to be sent electronically.

If you are a large company, keeping track of your employee details can be a task on its own, but by allowing staff members to update their information, you are saving time as well as the reduction of possible mistakes that can happen.

If you are considering outsourcing your payroll administration, it is important to outline what you expect from payroll software solutions before you take the plunge and implement a system into your organization.

It is also important to ensure you are happy with the decision you have made and that it covers all areas of what you require from your payroll software.

Payroll systems can prove to be a great addition to your business management systems and help you to ensure all staff receive the right amounts in their pay packets as well as allowing staff to view and update their personal information online.

Payroll systems can also help you keep track of staff pay rises and ensure they have been correctly applied to pay packets.

Whichever payroll solution you opt for, you can be sure by choosing the right one, you will save time and costs as well increasing efficiency in your payroll administration procedures.

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Double Check Your Annual Payroll Figures and Tax

2008-03-28T14:06:00.000-07:00

Payroll administration is a specialized section of accounting. Payroll software lightens the burden on many employers significantly. If used properly, a payroll system can add value to the business.

The biggest source of revenues for tax authorities is employee tax. Tax regimes are mindful of this, so regular audits and inspections are conducted on the payrolls of businesses.

A common discrepancy is the variance in total salaries for a year, in the income statement of the business, and the actual salaries paid. When business tax returns are furnished, the salaries amount may differ from payroll salaries declared for tax. The relevant tax office could identify this anomaly, and demand an audit. Stiff penalties could be levied.

Since software makes life easy, many users may be unfamiliar with the double entry that should integrate with the accounting system, which in turn is relevant for tax returns. A manual process of double-checking payroll totals and how it relates to the accounting system should be performed.

Please note that cash or bank payments to employees do not constitute total salaries. This is a common mistake and leads to numerous problems later on. I will expound by way of this example below,

Salaries and wages DR

Taxes and other deductions CR

Bank/cash (difference between the two above) CR

Taxes and deductions DR

Bank/cash CR

Analyze payroll schedules carefully, and determine if it conforms to the above sequence. If it does not, than that explains why your payroll does not balance with your ledgers and/or salaries expense.

For a large payroll, the help of a payroll accountant will be needed. The software supplier should ensure that the payroll software interfaces with the accounting software, or alternatively, produces accurate reports that enables bookkeeper to post the transactions to the accounting books.

A majority of audits on small to medium sized businesses targets tax, salaries and special perk discrepancies. Annual reviews of payroll figures will go a long way in addressing the above-mentioned shortcomings.

Employment Taxes - An Overview

2008-03-25T11:45:00.000-07:00

Employment taxes are often the bane of small business owners. They are the normal functions of large payroll departments and they are often misunderstood by employees.

Employment taxes are the tithe that must be paid to satisfy the requirements of Federal, State, and sometimes even local requirements. They are the bane of small business owners when they first hire an employee because of the complicated and detailed record keeping involved and the amount of paperwork required. In some cases, the employer is responsible for the tax. In other cases, the employer shares the burden with the employee. In the case of income taxes, the employer is merely obligated to withhold the entire amount from the employees pay and deposit and report it in a timely manner.

The major employment tax is Federal or State income taxes. This tax is calculated using information provided by the employee's W-4 form and following the guidelines in IRS Publication 15 and 15-A, the Employers Tax Guide and the Employers Supplemental Tax Guide. The State income tax, if applicable, is calculated in a similar manner. The taxes are withheld from the employee and must be deposited in a bank or financial institution that accepts tax deposits for the Government, and reported on IRS Form 941, Employees Quarterly Federal Tax Return.

The taxes mandated under the Federal Insurance Contributions Act (FICA) include Social Security taxes and Medicare Taxes. These taxes are shared on a 50-50 basis between the employer and the employee. Many employees are not aware that the employer is contributing as much to their FICA taxes as they are themselves. This is a hidden cost of employment that increases payroll. Another such tax is the FUTA tax. This is the Federal Unemployment Tax and it is paid entirely by the employer to provide funds for unemployment compensation.

The calculation and reporting of Employment taxes is normally done by the payroll departments of larger business concerns, but small business owners often find themselves struggling with the process. When a firm does not have an accountant that handles tax issues, this is often a serious problem for the owner. There are now many good business software programs available to assist in the preparation of payroll and the calculation of payroll taxes.

Common problems with Employment Taxes include poor record keeping and failure to handle deposits and reports in a timely manner. The IRS and the State taxation departments are not very lenient with employers who fail to report employment taxes when they are due and penalties can be levied against the employer for failure to do so. Although employees typically bemoan the large chunk taken from their take home pay, they usually do not realize the expense and the hassle of the employer in dealing with Employment taxes.

What Are Your Employee Leasing/PEO Goals?

2008-03-25T11:04:00.001-07:00

If you have decided that an employee leasing/PEO service is a smart choice for your business, the next step is determine what specific goals you want to achieve. With so many companies to choose from that specialize in specific industries, markets and states- which one will be the best choice for you?

For example, a contractor that needs to keep workers' compensation costs to minimum has a totally different objective than a physician's office in the need of a strong benefits package. This is where the search can be difficult. Many employee leasing companies these days don't even offer benefits. Their niche may be strictly in the construction and trades industry with an offering of competitive workers' compensation rates and payroll.

You'll also find what I would call "hybrid" employee leasing companies that target blue and gray collared employers with limited benefit packages so they can say they offer all the "bells and whistles" too. The final category would be PEOs that really target the white and grays with strong benefit and human resource services. These employee leasing companies will also provide more "extras" like pay cards, special reports and employee assistance programs.

Within those basic tiers of employee leasing companies there are still many factors that separate each. Many in each category, for example, have workers' compensation policies that only cover the employees in the state they operate from. Some may cover the state of their home office and a few surrounding states, with others offering nationwide coverage.

Health insurance and benefits need to be carefully selected, as well. Great Blue Cross and Blue Shield rates aren't worth much if you happen to be in an area where the doctor and hospital coverage is limited. A cut-rate plan that requires your employees to drive an hour to see the doctor ends up being more of a nuisance than a benefit.

As you can imagine the overall costs and fees will vary per group. The goal is to really drill down to your business needs and work from there. If you need help or just have questions, call us. Our information is free and helpful.

Failure To Withhold Employment Taxes - Don't Anger The IRS

2008-03-23T05:53:00.001-07:00

When you are told that employment taxes are an important part of a business, you should believe it. The failure to handle withholding from your payroll properly and to prepare and file reports timely will lead to a severe penalty from the IRS.

The obligation to make sure that the withholding of taxes from the employees on your payroll is done properly is a serious one for any employer. It does not matter if you have only one or two employees. The failure to obey the laws on employment taxes can lead to a serious IRS penalty. Many a new small business owner has been overwhelmed by the seemingly endless packets of forms and booklets that arrive from the IRS and the State when you begin your business.

It may appear that learning about and performing brain surgery would be easier than understanding your responsibilities in regard to tax withholding and reporting. This will not get you any sympathy from the IRS should you fail to do it properly and in a timely manner. The timely manner part is, perhaps, the more important of the two. Errors can be corrected, but you get fined for being late.

It is hard to pass off the blame, too. A recent court decision illustrates this point. A small automobile dealership hired a bookkeeper to handle the payroll responsibilities for the firm. His job duties included the filing of quarterly reports to the IRS and the depositing of funds withheld. He performed these duties adequately for a time, and then for some unexplained reason ceased to do it. The IRS imposed so severe fines on the firm for failure to file timely reports.

The firm sought abatement against the fines based on the fact that the failure to comply was the fault of the employee and the employee alone. They had trusted him and he had let them down. Of course, when his failure was discovered, he was promptly fired. The firm did not think they should be held responsible for his failure. Of course, this defense failed. It is the business that has the responsibility to withhold and to file properly. How, they discharge this responsibility is their concern, but whatever way they do it, if they fail it comes back to them.

Any business, large or small, should be aware of the seriousness of the IRS when it comes to the filing of employment tax forms and the proper handling of funds connected with withholding. There are stiff penalties for non-compliance. If it is a small business, and they are not familiar with what needs to be done, they must seek professional assistance.

Source: http://ezinearticles.com/?Failure-To-Withhold-Employment-Taxes-Dont-Anger-The-IRS&id=1054335

Payroll - Stop Stressing By Sending It Out

2008-03-23T05:16:00.001-07:00

For many companies, regardless of size, the cost of maintaining a payroll department is prohibitive and the stress of dealing with issues is intense. One way around this is to send the work out.

A payroll vendor is a company that takes on the responsibility of your payroll department. They are provided with the information necessary to calculate and prepare the paychecks for your employees. They also can handle the record keeping necessary to prepare and file the complex tax forms that can so befuddle small business owners. In most cases, the cost of the service is more than covered because the company using them no longer needs extra employees or office space to handle this function.

The only real necessity is the ability to communicate payroll information to the payroll company in a timely and accurate manner. They usually can take care of everything else leaving the business owner to concentrate on the major priorities of his business. Employees are pretty funny that way in most cases. They expect their pay to be accurate and on time. This makes payroll preparation such a priority job that it is often better to outsource it to professionals than to attempt it in house.

The services of the various vendors are pretty similar. They produce paychecks and records. The factors that set them apart are cost and customer service. This is so often the case when selecting a professional service of any kind. The problem is that too many make cost the primary concern when customer service is ultimately more important. It is strongly recommended that the business owner does not fall into the cost trap when selecting a firm.

The level of customer service is going to be the important factor. The ability to communicate effectively and be responsive to your company's individual requirements is the single most important service the vendor offers. If you are looking for such a service, it is important to have some references. These references should be similar sized companies with the same payroll conditions as your company.

A small business that is local and hires a few long term employees has few problems, but a larger company with employees that might be in different locations or has high turnover would present a whole different set of requirements. As is often the case in the selection of any professional service provider, make a short list of those that you are sure can meet your needs and provide excellent customer service. Once this list is made, then make your cost comparisons.

Source: http://ezinearticles.com/?Payroll-Stop-Stressing-By-Sending-It-Out&id=1054332

Payroll Outsourcing Companies

2008-03-15T05:57:00.000-07:00

Payroll outsourcing companies deal with outsourcing of payroll activities. They do the actual work of tallying hours and creating the paychecks for all the employees of a client. Payroll means a sequence of accounting transactions dealing with the process of paying employees for service provided, holding money from employees for payment of payroll taxes, insurance premiums, employee benefits, garnishments and other deductions. The payroll outsourcing companies provide the processing of non-core activities of a company. Payroll outsourcing companies usually have a group of experts, who can complete jobs quickly and efficiently, giving the management more time for development activities. Shifting the payroll burden to another firm means less work for in-house staff, eliminating the need for them to learn new, specialized duties.

Outsourcing companies undertake the burdensome responsibilities of administration, payroll record keeping, tax duties and claims, printing and delivering checks, and providing management reports. The experienced personnel in the outsourcing companies guarantee that your payroll files and details are accurate, prompt and professional. When there are problems regarding payroll activities the professionals in the outsourcing company can offer you reliable advice and rapid resolutions.

Signing up with a payroll outsourcing company saves time, resources and money for any small or big business establishment. The payroll outsourcing company will need to be given updated information once a week or once a month, depending on how often the employees are paid. An ideal payroll outsourcing company is one which is aware of all state and federal regulations. It should have credibility and sufficient facilities to handle the job undertaken.

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Payroll Time Clocks

2008-03-15T05:22:00.000-07:00

If you are managing a small business with a growing number of employees, it may be about time for you to purchase payroll time clocks to monitor attendance. There are several models of payroll time clocks suitable for different kinds of businesses and employees.

Types of Payroll Time Clocks

The most common is the punch system time clock. Employees slip their time cards through or under the clock to time in and time out. The clock prints on the card the time recorded. There is also the biometric payroll time clock that uses human imprints to recognize employees. The clocks usually identify the employees through a finger, palm or retina scan, and logs in their entry and exit times. There is also a growing number of enterprises that are switching to time clock software. The software is installed on each personal computer unit of the employees. In the morning, the employees turn on their computers and log on. The log on is their time on record. At the end of the day, they log out for their time out record. If you own a very small business startup, you can have the badge reader time clock system. For this device, only one person-you-can time in and time out for the employees.

Payroll Time Clock Software Generates Reports Faster

Modern payroll time clocks come with software that makes it easier for the payroll unit to generate reports and compute payroll, overtime pay, and deductions. To get the most out of a payroll time clock system, you need to choose the one best suited to your business and the kind of employee control you implement.

The capacity of a payroll time clock system depends on the breadth and sophistication of records management you require per employee. Some systems can handle several hundred employees; others are limited to a maximum of fifty.

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Federal Payroll Tax

2008-03-10T10:51:00.000-07:00

The authority over federal payroll tax in the United States is the Internal Revenue Service (IRS that determines the percentage of payroll tax withheld from an employee's wages, the formalities to be fulfilled by an employer and any other issues relating to federal social security, Medicare and unemployment taxes.

Federal payroll tax withheld from an employee's wages and paid by the employer includes federal social security tax and federal Medicare taxes. This is a mandatory government extraction from your check on every payday. The federal payroll tax also includes the Federal Unemployment tax that has to be paid by the employer. Medicare and social security federal taxes have to be equally divided with the employer and employees. Social security is taxed at 6.2% currently and Medicare at 1.45% currently in the United States.

Every organization and every employer must report to the Internal Revenue Service for the federal payroll tax. As an employer, your obligations for federal payroll tax are many. The first step is to get an Employer Identification Number (EIN), by filling out form SS-4 and applying for it at the local office of the IRS. Each employee then needs to fill out form W-4 for the employer. This procedure has to be followed by both full time and part time employees in your organization. In case the employee has not submitted this form, taxes will be withheld from the wages of an employee without taking into consideration dependants. This is because the amount withheld is based on the marital status of the employee and the number of dependants. Once done, the federal payroll tax is calculated according to the current rates and submitted to the local IRS office.

More information on federal payroll taxes can be found at the IRS Publication 15, Circular E.

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How to Calculate Payroll Tax

2008-03-09T23:09:00.000-07:00

The IRS is very strict on payroll tax and the deductions associated with it. Even a small miscalculation can land an organization in serious trouble with this regulatory authority. So, it is important to maintain careful records of payroll accounts in an organization.

The first step to calculating payroll tax is getting each and employee to fill up the W-4 form from the Internal Revenue Service. This form aims to calculate the payroll tax depending on the marital status of an employee and the number of dependants. Since most states have payroll structures that are based on the federal system formulated by the IRS, this form helps organizations calculate the payroll tax withholding for both federal and state governments.

Currently, the social security tax withheld from an employee's wages is calculated as 6.2% of total salary. This same amount has to be contributed by the employer, and added to the payroll account of the organization. The wage base for this tax is $76,000 dollars a year, beyond that, taxes need not be deducted from the employee. The same procedure is followed for Medicare taxes, calculated at 1.45% of the employees' salary. There is no wage base for Medicare taxes, and the employee and the employer goes on paying the tax independent of the salary of the employee. The Federal Unemployment Taxes (FUTA) is also calculated at 6.2%, but an employer can take credit up to 5.4%. The FUTA wage base is $7,000 dollars; an employee whose wages exceed this amount in a year, stops paying FUTA taxes that year. The same rules are applicable to State Unemployment Taxes (SUTA) also.

These calculations and deductions have to be done accurately to avoid any confusion. Each company must have a payroll account to that these deductions are transferred to and paid to the state and central governments at the end of the year.

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Payroll Outsourcing Services - Saving Valuable Time

2008-03-07T11:07:00.000-08:00

Payroll Outsourcing Services really can save you valuable time when it comes to working out your payroll data.

I remember working for a company which had around 200 members of staff and I had to sit and count out people's wages.

Thankfully, I didn't have to sit and work out how much each person was going to receive in their pay packet, or how much tax and national insurance contributions each person had to make. Counting out the cash was a headache in itself.

The great thing about Payroll software is that it works everything out for you, so you are not using up your time working out individual employees pay.

I'm sure if you have never used payroll outsourcing services before, that many times you would have been scratching your head trying to find a mistake, or even worse, had an employee stood in front of you telling you their pay is wrong - ouch!

Using Payroll Outsourcing Services isn't overly expensive. When you work out the costs of time you, or an employee, would spend every week or month working out administration such as tax filling, data input and calculations, keeping track of changes in the law as well as issuing payments and reports, the savings can be well worth it.

As well as reducing the amount of time spent, you also reducing the amount of risk.

When looking for Payroll Outsourcing Services, you are likely to find good companies over the internet, but always do your homework.

You should look for a company who is IPP qualified as well as ensuring you are going to get reliability and good customer service. Always check out their client feedback, and if they company gives a name of a company who is already using their payroll outsourcing service, then give them a call and see if they are happy with the service they are receiving.

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Why Small Business People Need to Outsource their Accounting Payroll

2008-03-04T22:48:00.000-08:00

Now mind you, I have been around small business people all my life, I even started out as one, after retirement, I guess, I am now a semi-retired businessman. So, when I give you this next advice, realize that I am speaking from experience. Small businesses need to outsource their payroll accounting, because it is serious business and if you make a mistake you could be fined or imprisoned. Certainly, I could tell you 100s of stories of small business people getting into serious trouble over payroll accounting, and it is just not worth it.

As a franchisor, our franchisees always had issues with payroll accounting, those who attempted to do it themselves using the latest software still spent huge amounts of time, time they should have spent with their families or in running their businesses. Small Business Entrepreneurs should do what they are good at and not get stressed out over those things they hate to do (accounting, especially payroll accounting) and do what they are best at; Making Money! You must make money in your business and you must focus and spend your time wisely.

Who should you hire for payroll accounting? Well, obviously someone who knows what they are doing, has good testimonials and has had a bit of experience dealing with government agencies and those who enforce payroll laws. Hire the best, work only for the best, so you can be only the best, and let me tell from experience that is my best advice in this matter. Let us call it my "Final Answer!"

Online Payroll Outsourcing

2008-03-04T14:22:00.000-08:00

What is Online Payroll Outsourcing? Well, outsourcing service provider will process all payroll activities online and thus making paperless payroll solution. It is emerging as fast outsourcing job in the field of payroll. Online payroll will help getting full information about payroll system of your organization on few clicks anytime. Online payroll will help you even getting the paychecks printed whenever it is required.

Why to outsource payroll jobs?

Payroll record keeping, maintaining records and tax reporting are time consuming as well as require large employment for maintaining payroll manually. Payroll is complex in nature due to involvement of taxations and various laws & by-laws for keeping it accurate. It will be very convenient for companies to outsource payroll jobs to outsource service providers who have good experience in payroll business. Such outsourcing firms employ highly qualified and experienced people who can handle your payroll accounts with ease. Outsourcing companies have adequate infrastructure to meet the overseas demand for outsourcing. They provide quality product, constant support and deliver on time. All these benefits with good price are the main reasons of online payroll outsourcing jobs.

Many online payroll outsourcing companies are now providing web based pay roll, which is becoming very popular. The moment data is modified and saved, website will give you latest data. Outsourcing companies prepare website with powerful software coding which automatically calculates data and then store in the service provider's drive. Another important way to make data online quickly is application service method. Here, data is not stored but is sent directly to the server's webpage. Data will only be transmitted if all calculations are done first on the provider's site.

Due to sensitivity, security is another concern for payroll data. While outsourcing online payroll business, it is very important to secure data from hackers. You must ensure that data is supported by SSL (Secure Socket Layer) encryption for reliable data transmission. Also, your online payroll outsourcing site must be guarded by multiple firewalls to stop unwanted intrusion.

Online payroll outsourcing helps in keeping data accurate and on time. A good online payroll outsourcing project should alarm the company about the due dates of payment, taxes, submission of relevant forms to government authorities, annual payments, renewals etc. It must be fast, accurate, user friendly, secured, and backed by prompt customer's support.

Help With Payroll Taxes - Telling The IRS To Buzz Off

2008-02-10T06:22:00.000-08:00

If you had known it would be this hard...If you're a small business owner, one of your constant headaches is making sure you're filing your payroll taxes correctly. You have to make sure you're taking out the right amounts in federal and social security taxes for your employees. You have to make sure you're reporting correctly to the IRS, and you have to make sure you pay the IRS those taxes every quarter, even if the payment could hurt your business.

Accidents happen...What happens though if you make a mistake on your reporting? Or worse, what happens if you don't pay on the taxes? What kind of help with payroll taxes can you get, and what can the IRS do to you?

As a former IRS-Hitman I can tell you that IRS revenue agents wait for small businesses to make a mistake on their payroll taxes. Small businesses, especially new ones can be a big payday for the IRS collectors once a debt from misfiled or un-filed payroll taxes occurs. So what help with payroll taxes is available?

The first step is admitting you need help. If you haven't hired an accountant or a CPA to help with you payroll taxes, you should. Even if you or someone you know is good at book keeping, someone experienced with filing payroll taxes with the IRS can save you a lot of time and stress.

You need answers...But you want to know what help with payroll taxes there is after the IRS has targeted you. Don't avoid the IRS; show that you're willing to work with the revenue agents. Whether you've made a mistake filing or missed a quarterly payment, pay any amounts owed immediately.

Why is paying immediately so important? First of all interest and penalties start accruing on the debt immediately and that debt can balloon very, very quickly. Secondly the IRS doesn't waste much time with small businesses before they start collection actions. They can shut your business down while they seize assets to pay off your debt if you can't come up with the cash. And you will probably not be able to recover from the loss of production while the IRS collects their due.

Losing your shirt...If your tax problem stems from a crooked partner or accountant stealing or embezzling money you can get help with your payroll tax debt by appealing to the IRS for a Penalty Abatement. If a debt is caused by a catastrophic event that was beyond your control, such as theft or embezzlement, the penalties on the debt can be removed which can reduce your debt by up to 30%. And that could be the help with payroll taxes that you need to make the debt manageable enough to work something out with the IRS.

Now you have the smoking gun...Use it!

Employee Leasing Vs Staffing Services - What's The difference?

2008-02-08T23:26:00.000-08:00

Over the years I've dealt with many business owners who confuse Employee Leasing (a.k.a. PEO services) with staffing or temporary labor companies. In many cases those same business owners have had experience with one or the other services, but really aren't familiar with the differences. So what are they, and how do each benefit employers?

To begin with, an Employee Leasing company's main benefit to an employer is to relieve the non-profit producing tasks of dealing with employee administrative hassles- such as payroll, employee benefits, human resources and workers' compensation. By outsourcing these to an Employee Leasing company, the employer can focus on what they do best and grow their bottom line.

Throughout the years, business owners have faced increasingly escalated government rules regarding employment. Employee Leasing companies assume many of these responsibilities and provide expertise in human resource management.

An Employee Leasing company is typically the most cost-effective option for an employer when the business owner has five or more full-time employees. Costs related to workers' compensation, unemployment tax and payroll administration are much less in comparison to a staffing or short-term employment arrangement. As you can imagine the more employees as a business has, the more time has to be devoted to employee issues- therefore the value of outsourcing this work becomes a more profitable decision.

A business can benefit by using a staffing or temporary help service in variety of ways, as well. The obvious advantage is the ability to access short-term help immediately. Whether it is a construction project with a timeline that requires temporary labor, or a secretary who takes a leave of absence for an extended period of time; accessing pre-qualified help at a moment's notice is when these services can be an employer's best friend.

The administrative costs such as payroll, unemployment taxes and workers' compensation are handled by the staffing company. The employer also relieves themselves of any benefit requirements like health care, vacation, sick or holiday pay. But, there is a premium to pay for these short-term employment services. The overall employee-related costs will be much higher including fees that are added for using staffing companies. The added risks and administrative costs for the services they're providing is exactly why staffing companies are to be used as a temporary solution.

Just as convenience and grocery stores fill a specific need, the services that Employee Leasing and staffing companies provide (although different) are an invaluable resource for businesses.

Employee Leasing Services Booming As Business Owners See Increases In Their Bottom Line

2008-02-05T11:59:00.000-08:00

At just 20 years old, the Employee Leasing, a.k.a. PEO (Professional Employer Organization), industry continues its steamrolling success at a hefty growth rate of almost 30% per year. Approximately 2.5 million Americans are currently co-employed by one of the more than 400 Employee leasing companies operating in the 50 states.

The reason for this trend is the need to outsource the frustrating "business of employment" tasks- such as hiring, human resource training, payroll, benefits and regulatory compliance. Between 1980 and 2000, the number of labor laws and regulations grew by almost two thirds, according to the federal Small Business Administration. This same study estimated owners of small or mid-sized business spent up to a quarter of their time on employment-related paperwork.

Employee leasing companies assume much of this burdensome responsibility and help businesses comply with all regulations. The employer can then focus on the income-producing areas of the business, where he/she is the expert.

Another advantage of using an employee leasing company is their ability to arrange a business' workers' compensation coverage with major insurance carriers, as well as manage the claims. They also offer human resources services delivered by certified professionals. Most provide services such as customized employee handbooks, recruitment, pre-employment screening, wage and compensation planning, and assistance with job descriptions.

Employee leasing companies help tens of thousands of businesses provide benefits such as health care plans, 401(k) tax-free savings accounts and other perks to their employees. Sponsored benefit programs can include major and supplemental health-care choices, including vision and dental care, employee assistance programs and even adoption assistance. An estimated 95 percent of workers in an employee leasing arrangement have access to a pension plan.

Almost any business can find value in a PEO relationship- clients range from accounting firms and construction to manufacturers and government agencies. The average client is a small business with an average of 19 employees, but some clients have fewer than three employees. Increasingly, larger businesses are signing up, too.

The employee leasing company enables each client company to lower employment costs and increase their business's bottom line. The client can maintain a simple in-house HR infrastructure or none at all by relying on the employee leasing company. Their professionals can provide critical assistance with employer compliance, which helps protect the client against liability. In fact, employee leasing companies have an 88 percent client retention rate due to strong client satisfaction.

Federal 941 Payroll Tax Payment Guidelines

2008-01-31T09:41:00.000-08:00

Many business owners don't realize how important it is to get payroll tax payments made on time. If a late payment is made, once the IRS catches up to it, the penalties are quite stiff: 10% off the top, plus interest. Try earning that at a bank today! Resist the temptation to pay late, because it's not a money saver, it's a money loser. Plus, penalties are not deductible.

Quick Tip: the IRS uses the term "tax deposit" to mean "tax payment", and uses the term "monthly depositor" or "semi-weekly depositor" to mean "monthly payer" or "semi-weekly payer", respectively.

Determine Your Payment Schedule

Before you can determine when the tax payment is due, you must first determine if you are a monthly depositor, or a semi-weekly depositor. Which type you are has nothing to do with when or how often you pay your employees. In order to determine which schedule you are on, examine the payroll records during the "lookback period". This period always runs from July 1 to June 30. For 2006, the "lookback period" runs from July 1, 2004 - June 30, 2005. If the amount you withheld for 941 taxes is $50,000 or less, you are a monthly depositor. If the amount during that period is more than $50,000, you are a semi-weekly depositor.

Monthly Depositor

If you are a monthly depositor, you will pay the taxes by the 15th of the next month. For example, for 941 taxes withheld during August 2006, the payment was due on Friday, September 15. If the 15th falls on a weekend or Federal holiday, the payment is due the next business day.

Semi-Weekly Depositor

If the payday falls on a Wednesday, Thursday, and/or Friday, the deposit is due on or before the following Wednesday. If the payday falls on a Saturday, Sunday, Monday, and/or Tuesday, the deposit is due on or before the following Friday.

The $100,000 Rule

Regardless of which type of depositor you are, if 941 withholdings reach $100,000 or more, a payment is due the next business day, and the semi-weekly deposit rules are in effect going forward.

Payment Methods

You may make payments one of three ways:

The IRS will send you a yellow booklet containing coupons. Fill one out, and take a check to your bank. Be sure to fill out the top stub of the coupon for your records. Use the Electronic Federal Tax Payment System. Visit www.eftps.com for more information and to sign up. Allow about two weeks for the enrollment process to complete. Other types of taxes can be paid as well, using this system. Find a payroll provider who offers electronic payment of employment taxes, and enroll in that service.

Avoid Costly Penalties

Don't pay late Pay using the correct method Pay the correct amount

Source: http://ezinearticles.com/?Federal-941-Payroll-Tax-Payment-Guidelines&id=329664
fundraising

Employee Lesaing, PEO, Or Payroll Leasing - What's In A Name

2008-01-28T13:17:00.000-08:00

In a world where it is increasingly common for business owners to outsource their payroll, workers' compensation insurance, and HR to guys like me, a more appropriate question is "why all the names?", when all three of the terms in this title correctly describe exactly what we do.

That's right. You can pick your favorite of the three, and use the second as a definition, and the third for...well, I guess, redundancy! This confuses PEO prospects, PEO referral sources (insurance agents and accountants), and if you are reading this than it probably confuses you, too. (Chances are that you are familiar with one of the three terms, and the other two sounded like sort of distant half cousins, right?) Now you know that you are in good company.

Therefore, having clarified this situation for you, you may now use whichever term you prefer to describe my industry. (We PEO-owners & enthusiasts just hope it's nice!) For the traditionalist, the term "employee leasing firm" is what the founding fathers used when the industry began in the mid-80's.

The contemporary may opt to address us with the term "PEO" which is the most commonly used term and most searched term for my industry on Google. (It is worth mentioning that "PEO" stands for "professional employer organization" and that our industry association and lobbyist is NAPEO).

The progressive-minded may prefer the more edgy term "payroll leasing firm" which just recently has come into vogue.

Not to digress, but PEO brokers offer the same 3-name ambiguity, too. (PEO brokerage firms are businesses that represent several different PEOs. The relationship is similar to the way in which insurance agencies represent a multitude of carriers).

PEOs and PEO brokers somewhat informally agreed several years ago to phase out the term "employee leasing". In theory, it made sense at the time to simplify the verbiage, favoring the term used within NAPEO's name. In practice, most industry insiders, including me, agree that it is too risky from a marketing standpoint to abandon the older term, although it is often relegated to parenthesis, next to the term PEO.

In closing, you are always welcome to check out the terms HRO, ASO, and BPO if you want to get confused all over again.

Source: http://ezinearticles.com/?Employee-Lesaing,-PEO,-Or-Payroll-Leasing-Whats-In-A-Name&id=944611
advertising blog news

How Easy is Payroll?

2008-01-27T01:38:00.000-08:00

The Institute of Pension and Payroll Management (IPPM) has a saying developed and used by its members: "We don't simply do payroll, because payroll isn't simple". Recently the Inland Revenue has introduced major changes which affect payroll and include legislation covering extended maternity leave, new paternity leave and payment rules, student loan repayments and many more.

Any company offering Stakeholder Pensions to its employees needs to be aware of the rules governing the application of pension through payroll.

Payroll becomes a juggle of paying employees, understanding the legislation and how to apply it and then ensuring compliance with the PAYE and National Insurance audit groups.

Over the next few years there will continue to be changes in legislation applicable through payroll. The IPPM and other organizations constantly lobby the government departments to ensure that new laws do not make the job of the payroll managers more and more difficult. The IR is in the process of introducing electronic filing which should make a big difference at the end of the tax year, especially to large organizations, but also throughout the year when form will be downloaded and returned electronically. All organizations will be expected to file paperwork and to pay the Inland Revenue electronically. This will be phased in with large organizations initially and smaller ones by 2008.

One major change recently has been the increase of National Insurance contributions. Not only has the percentage increased but the upper limit 1% has resulted in most people paying more NI. National Insurance does not only apply to the gross pay provided for employees but also to many employee benefits. A number of companies have been caught out by this change because it complicates the completion of P11Ds, often produced alongside payroll.

It sometimes seems that the Inland Revenue takes delight in finding ways to complicate tax and benefit legislation and there are some of these that catch out smaller companies.

The problem is that should any of these be picked up in a PAYE or National Insurance Audit, the company is responsible for payment, rather than the employee.

Here are some examples:-

Any amount of money paid to the employee, except where it is explicitly for business expenditure, is liable for tax and national insurance and should be paid through the salary.

If the company gifts an employee with virtually anything, the value is liable for tax and national insurance.

Fortunately paying the costs of employee's business mobile phone is no longer seen as a benefit but any home phone paid by the company is a benefit in kind.

Any fuel for private mileage paid by the company is a benefit and is liable for Tax and National Insurance.

All businesses need to ensure that the payroll and benefits are handles by a competent person, or otherwise outsourced to the accountant or a payroll bureau. Payroll bureaus can be expensive, but they don't need to be so it is best to shop around. It is no longer necessary to do a manual payroll although surprisingly large numbers of companies do just that. There is excellent and reasonably priced software around, both for payroll and P11ds but in buying software, do ensure that the Inland Revenue has approved it and that it is supported, improved and updated every year. Administrative or payroll staff who have some knowledge of the PAYE and NI legislation are invaluable to an organization.

Payroll is seldom simple but it is vital to every business. Ask the employees! If the payroll is a day late everyone knows about it!

Source: http://ezinearticles.com/?How-Easy-is-Payroll?&id=332923
change management

Direct Payroll Loans

2008-01-26T01:52:00.000-08:00

Payroll is defined as fixed periodic wages received by any worker in exchange for the work done for an organization. Direct payroll loans are loans given to a person on the basis of what they earn. It is an advance on the paycheck. It is also known as a payday advance, payday loan, payroll advance or cash advance. This kind of loan can be taken through various payroll loan providers.

The payroll loan is a short-term personal loan. It is repaid on the next payday by a preauthorized electronic withdrawal from the borrower's checking account. The rate of interest is generally around 20 percent. The loan amount is generally anywhere between $100 and $500.

Payroll loans can be easily applied for on the Internet. A prospective borrower must visit the website and fill out an application. Once they have been approved, they may request a loan by submitting the payroll loan amount and the date of their next payday. Once this information has been processed, the applicant receives a conformation. The amount is usually credited to their checking account within 24 to 48 business hours.

Web site loan providers usually offer calculators to check out the gross and take-home pay. However, these figures are generally estimates based on the approved amount and not the exact figures.

The general requirements for approval of a loan are that the borrower must be in a t job for at least 3 consecutive months. The take home pay must be a minimum of $1000.00 monthly, after taxes. The applicant must have a valid checking account and must be able to provide a valid current home and work phone number.

Source: http://ezinearticles.com/?Direct-Payroll-Loans&id=353420
advertising blog news

Outsourced Payroll Results in Fewer Tax Penalties, Study Finds

2008-01-26T00:51:00.000-08:00

A new study reveals that outsourcing payroll functions reduces payroll tax penalties. The study, conducted by Empagio Human Resources Outsourcing, was conducted online during the month of September 2006. 209 financial and human resource executives participated in the study. The titles of these people ranged from CEO, CFO, president, vice-president, director, and manager. The results of the study did not reveal the sizes of the companies represented.

Reduced Dollars Spent on Penalties

72% of those participating in the study said that outsourcing their payroll reduced the actual dollar amount of tax penalties being paid to various government agencies. Only 1% said their payroll tax penalties increased by outsourcing. The remainder, 27%, said there was no change in the dollar amount of tax penalties by outsourcing.

Reduced Frequency of Tax Penalties

69% of those participating in the study said that the frequency of paying tax penalties was reduced by outsourcing their payroll. 2% said the frequency of paying tax penalties increased by outsourcing, and the remainder, 29%, said there was no change in the frequency of paying tax penalties by outsourcing.

Why Should Businesses Reduce Payroll Tax Penalties?

There are three important reasons businesses should strive to reduce payroll tax penalties:

Payroll tax penalties are quite stiff; paying them damages cash flow Payroll tax penalties are not deductible on tax returns Late payments and filings are frustrating to those who are responsible for them; decreased productivity results

Unlike other business expenses, there is no financial benefit to paying payroll tax penalties. They are truly a drain on business resources, both the human side and the financial side.

Why Does Outsourcing Reduce Payroll Tax Penalties?

Payroll providers are trained in the complex task of payroll. Because of all the different federal and state taxes and regulations, wage bases, reporting requirements, and payment requirements, payroll is a tedious maze of timetables and decisions. Proper training and experience are important to getting the task completed correctly.

If your business runs payroll in-house and has been paying payroll tax penalties, consider outsourcing this important function. Many of the smaller payroll providers offer inexpensive payroll solutions with a wide range of up-to-date features, such as direct deposit and electronic filing at no additional charge.

Source: http://ezinearticles.com/?Outsourced-Payroll-Results-in-Fewer-Tax-Penalties,-Study-Finds&id=340438
accounting blog news

Cash Payroll Loans

2008-01-25T00:26:00.000-08:00

A cash payroll loan, another name for a quick payday cash loan, cash advance or instant cash loan, is one of the fastest and easiest ways to obtain access to cash to cover emergency financial needs. When you encounter a difficult financial situation, such as urgent medical and/or credit card bills, and you do not have enough cash on hand to cover these expenses, you can turn to a financial lender offering cash payroll loans to solve your financial problem quickly and conveniently.

A cash payroll loan is a short-term loan that covers an emergency need for cash or other short-term financial problem. These loans are designed for employees who need to bridge a cash flow gap between paydays. Getting a payroll loan is fast and easy. You can apply for a $500 to $3,000 loan and once it is approved, the cash is deposited into your account immediately. These types of loans are offered by various financial lenders, such as banks.

In the past, if you needed to get a cash payroll loan, you would have to personally go to traditional lenders. Now, using the Internet, securing a cash payroll loan is fast, easy and convenient. You can visit an online financial lender and apply for a cash payroll loan using a secure Web site. The online environment also provides you with more choices and allows you to compare interest rates, payment terms, and other important factors before you make a choice.

So if ever you find yourself in need of cash and your next payday is still a few days away, you can look for cash payroll loan deals and apply for fast cash. You don't need to have collateral or even make a down payment. You don't even need to have a good credit record. However, to ensure that you don't into a debt trap, pay your cash payroll loan as soon as you get your paycheck.

Source: http://ezinearticles.com/?Cash-Payroll-Loans&id=353354
Franchising

Small Business Bookkeeping Outsourcing Rescues You from Workload

2008-01-24T23:23:00.000-08:00

Outsourcing is a special service that unfolds the practice of handling various business related tasks in less money. It is quite beneficial for small business organizations, as it can help to save thousands of dollars. Small business bookkeeping outsourcing is meant to relieve business owners from those pressures that crop up at the time of overload of work. It is quite popular that small business owners try to handle every department on their own. On other note, keeping a trained staff to handle their bookkeeping work will accompany so many expenses. Just think that how a small business will run if it is paying so much to its staff.

Bookkeeping involves handling of the financial records, business revenue, profits and losses incurred by the company and various other expenses. At the time of tax session, if you are loaded with excess of bookkeeping work then the slight negligence can cause problems. Every single account can go wrong or the expenses and balances may not tally in this matter. At this point of time, outsourcing comes at your rescue. Outsourcing these services will not only save your time, but also money. In fact, you will be able to handle your small business with much more efficiency.

Bonus, gratitude, house allowance, conveyance changes, funds and various other things increases the expenses so much. This is not the only problem of hiring a trained staff, higher salaries is another factor to be considered. Small business bookkeeping outsourcing enables you to transfer your work to outsourcing companies. Usually, outsourcing companies carries out bookkeeping work in much less amount as compared to in-house staff. So, why not outsource the work rather than overspending. This will help you in concentrating on other profit reaping departments.

Bookkeeping outsourcing gives excellent quality work to any business. Because of the professional small business bookkeeping outsourcing staff, the work is handled with much efficiency. They are trained specially for this task only. Another thing to be noticed is that, these professionals do not handle any other department or aspect of the business like a business owner. They are able to concentrate completely on their task and this is the reason for their efficiency. If you think that the bookkeeping work is not being handled properly and there are chances of negligence, bookkeeping outsourcing will surely help you.

Outsourcing service helps you to cut down on a huge amount of expenditure. Well, these savings can also be invested in enhancing the efficiency of other departments to earn huge rewards. After all, every company in the business world is doing business to earn profits by spending less amount of money. Small business bookkeeping outsourcing is the best help that gives desired benefits to companies. This service accompanies various benefits such as performing efficiently in other areas of your business after transferring some of your work, saving maintenance cost of the accountant, the insurance benefits, general liability insurance and many more. Bookkeeping has always been a monotonous task for numerous companies. And outsourcing is like a help to the drowning person.

Source: http://ezinearticles.com/?Small-Business-Bookkeeping-Outsourcing-Rescues-You-from-Workload&id=348523
customer services

Choosing A Payroll Accounting Software For Small Business

2008-01-23T23:10:00.000-08:00

You need people to run a business unless you happen to be a one-man-industry. So, if you have employees, you have payments to make, taxes to deduct from the salaries and send the deducted money to the state exchequer. In case of larger establishments, these things are taken care of by the professionals, who are experts in the area, which takes the accounting load off the higher management.

But if you own a small business, you need to take care of the payroll all by yourself. The old paper system, quite obviously, is too cumbersome and time consuming to fit today's business needs. Therefore, what you need is an efficient payroll accounting software.

A small-business payroll software manages payroll and taxes in a small business establishment. Now, you may be in a fix as to whether or not your establishment is a small business. The answer is quite simple. If you have less than 500 employees, your business is small business for the purpose of getting an accounting software. In other words, irrespective of how much revenue it generates or the amount of profit you might be making, if you have less than 500 employees, you just need a payroll accounting software designed for small businesses.

The tedious tasks of figuring, documenting and executing a payroll is made easy by payroll accounting software whether it is on monthly, biweekly or weekly basis. So far as the cost of the software is concerned, it depends upon the number of employees and the duration of payment. Other than that, the state where your company is located together with the tax procedure followed also matter. These factors influence the features in the software, which, in turn, affects their prices.

Executing payroll is a complicated process and involves skilled manpower. That's the reason why even small businesses have to have full time employees specifically for this purpose. A payroll accounting software reduces the necessity of the payroll executors and makes the whole exercise far smoother, faster and accurate. What is further heartening is the fact that these software are constantly evolving and are getting faster, friendlier and more accurate.

While choosing a payroll accounting software you must also keep in mind the growing needs of the company. So, get a software that is flexible enough to accommodate a reasonable amount of work expansion. It is also advisable to purchase the software that comes with an assurance of an up-gradation later in time. The best deal is the one that give you the most for the least.

continuity disaster recovery

Payroll Check Cashing

2008-01-23T22:53:00.000-08:00

It is normal for employers to hate paydays, although not so much because it is the day they have to pay their employees their due but because doing so involves a lot of counting and computing. Computing individual salaries and giving the accurate amount to every employee is definitely taxing and may cause much confusion. To avoid all these troubles, many employers have opted to release payroll checks instead of actual cash during paydays. With payroll checks, employers no longer have to worry about counting cash.

But while payroll checks offer convenience for employers, they offer the opposite for employees, especially if the employee is 'unbanked' or 'under-banked.' Long lines, limited banking hours and tons of requirements often pester employees each time they cash their payroll checks at the bank. There?s also the additional trouble of paying a check cashing fee, although often minimal, for every payroll cashing transaction for the 'unbanked' and the 'under-banked.'

Because of various business developments and technological advancements, payroll check cashing is no longer very inconvenient for employees. Banks are no longer the only establishments where you can cash payroll checks. Nowadays, you can cash a payroll check from a check-cashing center, which often requires a very minimal check-cashing fee and can process the check in less than 5 minutes. For more convenience, you can also cash your payroll check from the various check-cashing kiosks that can be easily found in major shopping centers and many convenience stores.

Another technology being developed today, which is, in fact, already being used by many companies today, is the payroll card. The payroll card is a plastic card that employers can use in place of payroll checks. This new technology allows employers to directly load an employee?s salary to the card, making cash transfers more convenient on the part of the employer.

With new technologies and various developments in the business world, payroll check cashing is no longer as inconvenient as it was years ago. And with more technologies being developed in the area of payroll check cashing, payroll checks and related instruments may soon be seen both by employers and employees as more practical than handing out salaries in cash.

continuity disaster recovery

Keeping Up To Date With Changes To Payroll Tax Laws

2008-01-23T00:50:00.000-08:00

The typical American business comes in all types and sizes. In fact, one might argue that there is no such thing as a "typical" American business. The business community in this country consists of multinational corporations having tens of thousands of employees, countless small sole proprietors with just a single employee and virtually everything else in between. One thing that almost all of them have in common is that they must deal with the responsibility of paying employees and complying with numerous payroll related tax and regulatory obligations. This can be an especially burdensome task for small business owners. Larger companies can afford to have full time staff dedicated to managing payroll issues as well as keeping up to date with the frequently changing payroll laws. This is seldom the case for owners of much smaller companies. So exactly how does a small business owner go about maintaining compliance with the ever-changing state and federal wage and payroll related regulations? The following paragraphs will serve to illustrate the importance of keeping up to date with these rules, as well as discuss the best methods for businesses to go about remaining compliant.

Without a doubt one of the reasons that so many business owners have such a hard time dealing with payroll tax matters is because in addition to numerous deadlines for filing, the rules of the game can change often. Just a few examples of the changes to federal payroll guidelines made in recent years include:

Electronic Filing Requirements- New regulations were recently released that require certain corporations to electronically file their payroll taxes. Beginning in 2007, the electronic filing requirement will be expanded once again.

New Form for Nearly 950,000 Small Businesses- Beginning in 2006, certain employment tax filers will file the new Form 944 (Employer's Annual Federal Tax Return) once a year rather than filing Form 941 (Employer's Quarterly Federal Tax Return) four times a year.

Refund of Tax Penalties-Here is one that many business owners should actually like! If your business was assessed a penalty by the IRS for filing a late or inaccurate tax form, and if this was your first infraction, you could be entitled to a refund of that penalty if all of your forms and deposits are timely and accurate for the next full year.

Revised Employers Quarterly Federal Tax Return Document 941- The Internal Revenue Service unveiled a new version of the employment tax return Form 941. More than 23 million of these forms are filed annually by 6.6 million employers. The Form 941 is used to report wages, tips and other compensation paid, as well as Social Security, Medicare, and income taxes collected.

Standard Mileage Rates Increased-Many businesses pay a mileage allowance to their employees that reflects the allowable tax deductible mileage rate set forth by the IRS. The IRS has in the past adjusted the standard mileage rate during the year to reflect increases in the price of gasoline. For example, From Jan. 1 to Aug. 31 of 2005, the standard mileage rate for business use of a car, van, pick-up or panel truck was 40.5 cents a mile, compared to 37.5 cents a mile in 2004. Effective Sept. 1, the rate increased to 48.5 cents a mile.

How important is it for a business to stay up to date with payroll regulations? First, remember that there are literally thousands of wage and payroll related regulations set forth by the Internal Revenue Service alone. Then bear in mind that each state also has its own set of regulations for business owners to follow. Now consider that according to statistics form the IRS, more than 13,000 small businesses were audited in the year 2004 (this figure does not include larger corporations with more than $10 million in assets) and that the IRS brought in more than $41 billion dollars in total enforcement revenue during that same year (this figure includes enforcement revenue from both payroll and non-payroll related sources).

One way to make sure that a business follows the rules is to enlist the help of a professional who has experience in dealing with payroll matters. Most often, outside help will come in the form of either an accountant or a payroll service provider. Accountants will typically provide tax filing services and for a fee may advise clients on payroll related matters, even if the accountant is not the person actually producing the paychecks. Some accountants will produce the paychecks for a client as well, though not all will do this. The other option is to utilize the services of a payroll provider. A payroll company will typically handle all aspects of payroll, from weekly paychecks to filing the correct tax documents on time, making tax deposits to the IRS and to the proper state regulatory body, providing year end W2 statements to all employees, as well as direct depositing employee checks electronically. The cost of these services varies, but a typical rate might be in the range of $40 to $50 for each pay period for a small business with approximately 10-20 employees. The cost of payroll services will typically go up by $1-$2 for each additional employee.

Of course, not all businesses choose to enlist outside assistance. With the help of software programs such as QuickBooks and a little time spent studying the relevant payroll regulations, many business owners choose to tackle payroll on their own. In fact, the IRS has a section on their website that outlines both the basics of the current federal payroll laws, as well as regular updates to payroll laws as they occur. You can learn more about federal payroll regulations by going to the employment taxes section of the IRS website at http://www.irs.gov/businesses/small/content/0,,id=98942,00.html. State laws vary from one state to another, but most states do have similar information available on their websites as well.

Source: http://ezinearticles.com/?Keeping-Up-To-Date-With-Changes-To-Payroll-Tax-Laws&id=372279
advertising blog news

How To Buy Payroll Services For Small Businesses

2008-01-23T00:32:00.000-08:00

Small businesses that do not want to deal with or do not have the resources to deal with payroll management and administration, seek professional payroll service providers. They are cost effective, more experienced, reliable, well trained and takes care of mundane chore such as paying employees, and filing taxes etc., saving valuable time that can be devoted to building and running the business successfully.

It is a time consuming as well as exhaustive task to manage the payroll requirements of a business. Trained personnel are needed to be up to date, maintain employee work schedules, their leave calculation, be informed about hiring of an employee as well as aware of those who have be fired etc. so it is easier done by an experienced payroll service provider. When the business has to pay payroll taxes in different states it is better to opt for buying payroll services for small businesses.

The payroll service provider takes care of calculating and getting paychecks ready on time, printing and delivering checks, calculating tax obligations, check signatures, direct deposits, offer tie-ups with retirement plan funds, filing of federal and state payroll taxes etc.

Things to Consider While Contemplating Buying Payroll Services for Small Businesses:

Carefully consider if your business can afford to outsource payroll services and if it will be cost effective.

Research on the Internet, look up the yellow pages, ask people to recommend a good payroll service provide.

Make a list of all possible candidates, call them, and enquire about the services they offer and the costs. Carefully analyze by comparing all the firms, which one offers the best service at the price you can afford.

Make sure the terms are straightforward and hat there are no hidden clauses.

Be certain that the firm you select is a stable and reputable one that services several businesses other than yours.

Beware of expensive add on services that may escalate your costs.

The payroll service provider has to be experienced in handling your kind of business requirements.

These are a few things to be considered while you buy payroll services for small businesses.

The payroll service provider usually cost about $3 to $5 per check processed, with additional fees for the other service it provides such as delivering checks, calculating tax obligations etc. web-based payroll service providers are gaining popularity as the small businesses have to enter relevant data in a secure website and payroll service provider works using the data provided.

Compare prices and services before deciding to buy payroll services for small businesses. Select a provider who is reliable and trustworthy. It can work to your advantage saving time and money, which can be utilized to achieve target goals.

There are firms that sell services as well as products to run businesses efficiently and effectively.

Source: http://ezinearticles.com/?How-To-Buy-Payroll-Services-For-Small-Businesses&id=377840
Business online blog

Small Business Bookkeeping

2008-01-22T01:43:00.000-08:00

Bookkeeping is the process of maintaining records of various transactions of a business. The records include total revenue, gain, loss, expenses, dates of transactions, and many other details. Bookkeeping is the basis of accounting process and it is very important, no matter what business you are in.

There are several advantages of maintaining proper bookkeeping for small businesses. Basically, bookkeeping is legally required for every business. It helps business owners know the exact position of their business anytime they want. Details like gain or loss, the amount due to creditors, dates of transactions, and the amount due from debtors are critical in assessing financial position and bookkeeping helps a great deal in these things. Small businesses have to maintain bookkeeping to be legally and financially sound.

Regular bookkeeping with details regarding transactions, turn over, and profit and loss generations helps small business owners a great deal in getting loans from various public and private financial sources. It is always important to have professionals to maintain books. You can have full-charge bookkeepers who take care of the entire transaction process of the company and/or accounting clerks who can handle specific accounts.

Regularity is one thing which is essential when it comes to bookkeeping. Regular updating is essential in bookkeeping. Maintenance and updating of books should be done on a regular basis - daily or once a week. If updating is not done regularly, one will never know the business' true status. Bank statements which indicate the flow of funds are essential for small businesses.

For many small businesses, transactions are done through invoices and receipts and payments are received or paid through checks or card payments. Bookkeeping can be done manually or can be computerized, depending on the size of the business and transaction volumes. This is usually done by maintaining a monthly spreadsheet of the expenses incurred daily and another to show the sales, purchase, gross, and net profit.

In cash businesses, it is important to keep track of the earnings and expenses for tax purposes. Proper and regular maintenance of books helps the business to a great extent and saves the owner many unwanted troubles.

careersemp loyment

5 Ways To Delegate Without A Payroll

2008-01-22T01:27:00.000-08:00

Assign Tasks to Kids

Do not underestimate the potential of your kids. Kids can handle some task that you do not have time to do: filing, recording messages, paper shredding documents, etc. My 15 year old daughter is responsible for inputting information from business cards that I collect from meetings, into my contact management system, proof reading documents, filing, typing and other small administrative task. She loves it and it gives her great employability skills and inclusion in my business. It is a great way for kids to receive an allowance and special privileges. It allows me to concentrate on other task without having to hire someone.

Trade or Barter Services

If you are in need for a service that requires the expertise of another professional, trade services with the another business owner to avoid any cost. I currently barter by utilizing the expertise of a marketing coach and she utilizes my time management expertise. I've heard of a hair stylist and message therapist bartering each other's services. It also creates another satisfied customer which will provide referrals for your business. This is a win- win situation.

Get Family & Friends Involved

Your family and friends have an abundance of talents that you can take advantage of for a project or task. You can ask for help from a family member or friend and return a favor or take them out for coffee or lunch in return for their solicited help. Notate their special talents for future reference and include it on a spread sheet for when you may need that particular help. You may need babysitting services for an evening speaking engagement or maybe your aunt is an English teacher who can edit your articles or your cousin has an excellent voice that can be used for your voice mail recordings. Utilize the talents of all!

List Projects on Elance.com

You can list a project on www.Elance.com. It allows your project to be posted for free and you then receive professional bids on completing the project. You the liberty to decide on the most affordable bid that fits your budget and review the bio and expertise of the person or company completing the project.

Contract Projects to A Virtual Assistant

You do not have to hire a virtual assistant to handle all administrative tasks. You can hire a virtual assistant per project, once the project is complicated, the contract is over. The virtual assistant can be hired per project which eliminates hiring a fulltime employee, paying health insurance, and it requires no long term commitments.

Hire College Students

Call your nearby university, community college or training program for available internships from students preparing to enter the workforce and who are in need of work experience to include on their resume and will also require a letter of reference from you for future employment.

Don't feel that you are not alone when there is no room in your budget for additional employees or delegation. Use the above resources and proceed with your projects. Remember you went into business to work on your expertise; don't allow other tasks to take you away from that path!

change management

Review and Update Your Payroll Information for Next Year

2008-01-22T00:57:00.000-08:00

As another year draws to a close, remember to see your payroll administrator if you've had any of these major life changes this year:

Change of address. Be sure the payroll department has your new address so your W-2 will arrive promptly after it is processed in January. This also insures that all of your benefits providers, such as your health insurance company, can continue to provide you with up to date enrollment information and identification cards.

Change of marital status. Did you marry, divorce, or lose your spouse this year? If so, you should review your federal and state withholding exemptions to make sure the proper tax is being withheld from your paycheck. See your employer for a new W-4 form if you need to make changes to these exemptions.

Birth or adoption of a child. If your family size increased this year, you should also review your withholding exemptions. Increasing the number of exemptions you claim on your W-4 will decrease your taxes each payday and therefore put more money in your pocket. Rather than wait until April 15th of the next year to get a refund, why not get a few extra dollars in each paycheck? With a new baby, I'm sure this cash would come in handy now instead of later.

Does your employer offer a Flexible Spending Account or a 401(k) and have you considered participating in these plans?

Flexible Spending Account. If you have any out of pocket medical expenses each year, be sure to take advantage of this important benefit. In most cases, just about any cost not covered by your medical insurance can be submitted for reimbursement from your FSA. Don't forget about eyeglasses, contact lenses, dentist visits and co-pays when you add up your annual medical costs.

401(k). It's never too soon to begin thinking about saving for your retirement. If you're in your twenties, now is the ideal time to begin saving because you have many years to grow your money. If you're over thirty, what are you waiting for? And, if your employer offers a match to your contribution, you're giving up free money if you don't participate in this benefit. Be sure to ask your employer about signing up for these tax-saving plans.

Make a New Year's Resolution to review and update your employee information every year, and find out about any new benefits you are eligible to participate in.

advertising blog news

Forex Trading - Non-Farm Payroll Trading (Are You Insane?)

2008-01-21T11:21:00.000-08:00

I understand the allure of trading these wild news events. I used to dream of it myself. It sounds like easy money. Just trade for short periods of time. Make a great return on your investment. It sounds so good!

Then the reality of the issue settles in. Most brokers widen the spread during these times. For example, I know one broker who widened the spread to around 200 pips. Often times it's increased to 50 pips. The "guaranteed" 2 pips spread doesn't exist during times of high volatility.

With spreads like that you're guaranteed to lose. You simply can't trade with a spread like that, and the brokers know it. That's why they have the spread set up like that.

But just for the sake of argument, let's say you found a broker who would let you trade with a regular sized spread during the non-farm payroll release time.

The most common way to trade the news is to straddle it. In other words you place a buy and a sell in the market. Whichever way the market goes first, it will touch that order first. Then the other order is removed from the market, and you work to make profit on your open order.

Well, the market will often whiplash. You may think you guessed wrong and exit the trade at a loss. Then the market will turn and go in the direction you were trading. Or, you'll hang on (thinking that the market is just faking), but it's not. And you'll end up with a huge loss.

In truth, news trading is just like playing craps. It's gambling.

Source: http://ezinearticles.com/?Forex-Trading-Non-Farm-Payroll-Trading-(Are-You-Insane?)&id=451642
change management

HR Payroll Software

2008-01-21T11:04:00.000-08:00

Human Resource (HR) payroll software can be defined as a comprehensive accounting solution to meet the demands of modern day payroll process. Payroll requirements are unique and most of the HR payroll packages are flexible and diverse to accommodate the most complex requirements across industries and organizations. Modern day HR payroll packages are versatile and user friendly. This enables the user a choice of sort order, selection of branch, department, position, etc. and other parameters to generate payroll output as per requirement, either on screen or as hard copies. Today's HR payroll packages have a built-in facility to directly mail the salary slip electronically to the employees. It will also have facilities to send salary statements to other branches, salary disbursement outputs to banks as per the bank's format.

Functionality, quality, and quantity of HR payroll packages have grown over the years and each company that provides payroll solutions ensures that their package is totally adapted to the requirement of the user. Modern payroll packages are user interactive, i.e., it will have a web based module which allows intranet or internet based interface for employee self-service. This allows each employee in an organization to view and update certain payroll related information such as income tax computation, leave data, loan data, etc. The salient features of modern HR payroll packages are flexibility, versatility, easy creation of employee details, convenient modules to update data and transfer of data such as salary reports, etc. It will also have modules that would enable the HR staff easier access to monthly loan reports, periodic reconciliation reports, and employee related details such as leave reports, income tax reports, etc.

Most of the big organizations rely on their IT departments for the payroll software, but it is the HR department's responsibility to ensure that the software contains all the necessary modules to manage all payroll functions. Payroll solutions are also available for small and medium-sized organizations; but, before approaching any vendor, the HR staff should be very clear about their payroll needs. Irrespective of whether a business is big, small or medium-sized, payroll packages should be full functioning and reliable for an unlimited number of employees.

Source: http://ezinearticles.com/?HR-Payroll-Software&id=407904
continuity disaster recovery

Tax Attorney Explains How To Survive An IRS Audit

2008-01-21T00:58:00.000-08:00

IRS audits can be stressful, time consuming and, in some cases, expensive. This article provides an overview of how to approach an IRS audit.

The first step is always to gather information. Taxpayers should start by locating their tax returns for the tax year being audited and the tax year prior and subsequent to the tax year being audited. Taxpayers should then look for documentation to support any tax deduction or tax credit that they claimed on these tax returns.

Particular attention should be paid to expenses listed on Schedules E (for investment property) and C (for small businesses) and items listed on Schedule A (assuming that the taxpayer opted not to itemize their deductions). Mileage expenses, charitable gifts, contract labor, cost of goods sold, and other unusually large items will draw the IRS auditor's scrutiny.

Also, taxpayers should double check the items of income on the tax returns to verify that they did not omit any items from their tax return. Taxpayers often discover that they omitted interest or dividend payments from small savings or brokerage accounts. In many cases taxpayers fail to report these items due to the investment company failing to send out the required tax documents to the taxpayer. Taxpayers should be prepare to explain any unreported income.

Having copies of each of these items to provide to the IRS examiner can prove very helpful in resolving an IRS audit in a timely manner.

Taxpayers can expect that the IRS examiner will want to meet at the taxpayers house and/or business. The idea is that the IRS can ask the taxpayer to go fishing for additional documentation when they are in these locations. That is why it can be helpful for taxpayers to request to meet at the IRS examiners office.

Taxpayers should also be advised that the IRS examiner's job is to assess the most tax possible. Unfortunately, many taxpayers forget this fact as the IRS audit progresses. The result is typically a notice of proposed adjustment mailed to the taxpayer a month after the IRS audit that is completely out of sync with what the taxpayer expected. To avoid this, taxpayers must always recognize the IRS examiner's role and the taxpayer must be proactive in asking questions and determining what EXACTLY the IRS examiner needs to allow the taxpayer's deductions and credits.

Assuming that there are no items of unreported income and the taxpayer is able to substantiate all of their tax deductions and credits, then the IRS audit should be fairly straightforward. If the taxpayer is not able to substantiate deductions or credits or items of unreported income are involved or the IRS audit uncovers these items, taxpayers should immediately consult with an experienced tax attorney. The same goes for tax periods in which the taxpayer did not file tax returns. The relatively modest cost for an experienced tax attorney can significantly reduce the amount of tax that the taxpayer may end up having to pay.

Source: http://ezinearticles.com/?Tax-Attorney-Explains-How-To-Survive-An-IRS-Audit&id=457170
change management

How to Avoid the Perils of Payroll Taxes

2008-01-21T00:41:00.000-08:00

It is the nightmare scenario for every business owner. A letter from the IRS arrives demanding payment for unpaid payroll taxes. The statement list the amount owed along in addition to penalties and interest. Thousands of businesses are faced with this situation every day. Even worse, many of these companies are forced into bankruptcy every year when they are unable to make the payment demanded.

The IRS also considers the problem of unpaid payroll taxes significant. "Payroll taxes represent a significant portion of the IRS's accounts receivable," says Carolyn Stumpf, a spokeswoman for the agency. Fines for a business that collect the taxes but fail to pay the IRS are significant. The IRS considers this their money that is simply held by the business.

But most unpaid payroll taxes are a function of mistakes rather than deception. Depending on the size or your company the time to file is quarterly, monthly or even the day after payday. Missing the due date by even one day can generate a sizable fine. Knowing what to forms to file and when is scheduling problem for a business owner with a million other things they are working on.

Timing is not the only problem. The tax rates that must be withheld are a moving target that often changes as often as congress is in session. There are rates for Social Security and Medicare taxes that have rates for withholding from the employee and the employer contribution. These two taxes sum to the Federal Insurance Contribution Act, FICA.

Federal Unemployment Tax and Federal Income taxes must also be collected from each employee. And that is just for the federal government. There are also taxes that must be collected for the state and even some local governments.

The various rates, numerous schedules and countless forms are enough to make a business owner's head spin. But the failure to get it exactly right is even scarier.

The process starts with a letter and then a phone call. If not corrected the an IRS agent will pay you a visit. If they determine your business is salvageable they can work out a payment plan. If, however, they determine your business is failing then they can sell your assets to collect the money ahead of your creditors.

An even worse scenario exists. The IRS can peruse the business owner or the officers of the company for the unpaid taxes if it defaults.

With such a complex system and such steep penalties it is not surprising that so many companies are turning to payroll services to help them navigate the payroll tax maze. But what criteria should you use to find the right service?

Liability - If there are ever mistakes will your payroll company stand behind you and pay the fines or do you maintain the liability for any errors? You also want to make sure they have the financial security to backup their promises if ever needed.

Access - How will you enter your payroll information? Some services have websites or you may need to call it in to their representative.

Customer Service - If there are ever any changes you need to make how easy is it to contact the service. Make sure you can get a real person on the phone if that is ever needed.

Price - Your costs will primarily vary by how many employees you have and how often you run payroll. Make sure you ask about any additional charges like check delivery or quarterly filing.

By getting several quotes and doing some due diligence you will be getting a good payroll service at a reasonable price. Now you can back to running your business instead of untangling the payroll tax knot.

Source: http://ezinearticles.com/?How-to-Avoid-the-Perils-of-Payroll-Taxes&id=455637
accounting blog news

Unclaimed Payroll Check

2008-01-20T03:13:00.000-08:00

Unclaimed or uncashed payroll checks handled incorrectly by an employer can result in serious trouble for the employer. Prior to implementing a policy on how your company handles these types of checks, there are several issues to consider:

Every state has escheat laws that affect unclaimed or abandoned property. In general the laws require that such property, including the funds from uncashed and/or unclaimed payroll checks, be turned over to the state after a designated period. That period and possibly a minimum amount vary from state to state. The state then holds the items for the owner or heirs until a claim is filed to collect the property.

If an uncashed payroll check is voided the money is then available in the company's payroll checking account. If later the funds are not available to pay the employee or to submit to the state the, employer and officers could find themselves under a breach of fiduciary responsibility. If the courts find the actions intentional the court could find criminal intent. Remember once you issue a check for wages to an employee those funds no longer belong to the company in any way. Under no circumstances should the funds from uncashed paychecks be returned to the general checking account.

Even if the employee never claims the money or cashes the payroll check the employee deserves credit on his Social Security and Medicare accounts for wages earned. The wages also need to be reported as paid for unemployment purposes and unemployment tax needs to be paid. Even though the employee did not actually cash the check, the wages are considered to have been paid during the tax year in which the check was dated

The company must report these wages on the 941, 940 and W-2 forms and pay all taxes that are due as if the uncashed unclaimed payroll checks had been cashed on a timely basis. State unemployment reports and taxes will also need to be filed and paid as if the payroll check was cashed.

Your company policy should contain the following items at a minimum:

A method of collecting, reporting and safeguarding unclaimed payroll checks and recording and tracking uncashed payroll checks,

An outline of the steps to be made and the recording of those steps in attempting to contact the employee who has not cashed or not claimed a paycheck,

The specific period of time, which may be prescribed by the State, after which the payroll check will be voided and the monies escrowed pending payment to the employee or the state. The method and place where this will be recorded,

The period of time, which will be prescribed by the state, after which the monies will be forwarded to the state.

The method and place where this payment will be recorded.

change management

Payroll Record Retention Requirements

2008-01-20T02:42:00.000-08:00

Every business must retain certain records on their current and past employees, but which ones and for how long?

On the federal level, there are two agencies that regulate record keeping. First is the IRS, which is responsible for enforcing the Internal Revenue Code. The second is the U.S. Department of Labor (DOL). The Wage and Hour Division of the DOL is responsible for enforcement of the Federal Fair Labor Standards Act (FLSA), the Family and Medical leave Act (FMLA), the Immigration Reform and Control Act (IRCA), and the laws governing wages paid by federal government contractors.

Both of these agencies have separate rules regarding the type of records that must be kept and the length of time you must keep the records. To further complicate your requirements there are numerous state, local and other regulatory agencies that may require additional record keeping. State agencies enforce State Unemployment Insurance Tax Acts, state wage and hour laws, child support and creditor garnishment laws and unclaimed or abandoned wage requirements.

Keeping these records accurate and up-to- date is extremely important to the health of your business. Without the proper records you will be unable to meet regulatory requirements should you be audited by any of various federal state and local agencies. Failing to meet these requirements can mean large penalties and the potential for large settlement awards should you be unable to provide the required information when requested.

Internal Revenue Service

The following records must be kept for four years after the tax due date or the actual date paid.

Name, address, occupation, and social security number of each employee

Total compensation and date paid including tips and non-cash payments

Compensation subject to withholding for federal income, social security and Medicare tax Pay period for each compensation period

Explanation of difference in total compensation and taxable compensation

Employees' W-4 Form

Dates of employment (beginning and ending)

Employee tip reports

Wage continuation made to an absent employee by employer or third party

Details of fringe benefits provided to employee

Copy of employee's request to use the cumulative method of wage withholding

Adjustments or settlement of taxes

Amounts and dates of tax deposits

Total compensation paid to employee during calendar year

Compensation subject to FUTA

State unemployment contributions made

All information shown on 940

Copies of returns filed (941, 643, W-3, Copy A of Form W-2 and returned W-2 forms)

Department of Labor

The following records must be kept for three years after date of last entry.

Employee's name as it appears on social security card Complete home address and date of birth if under age 19

Sex and occupation

The beginning of the employee's work week Regular rate of pay for overtime weeks

Hours worked each workday and workweek

Straight-time earnings including the straight -time portion of overtime earnings

Overtime premium earnings

Total wages paid for each pay period including additions and deductions

Date of payment and pay period covered

Records showing total sales volume and goods purchased

Following records must be kept for two years after the last date of entry

Employment and earnings records, employee hours of work, basis for determining wages and wages paid

Order, shipping and billing records showing customers orders and delivery records

Wage rate tables and piece rate schedules

Work time schedules that establish hours and days of employment

Department of Labor

In addition to the general requirements of both the IRS and the DOL mandated by several federal acts. They are:

Family and Medical Leave Act

Basic payroll and employee data Dates FLMA leave is taken Hours worked by employee in last 12 months Hours of FLMA leave for exempt employee Copies of employee notice to employer Copies of general and specific notes given to employees Copies of policy regarding taking of paid and unpaid leave by employee Documents verifying premium payments of employee benefits Records of FLMA leave disputes between employee and employer

Title VII of the Civil Rights Act of 1964 and the Americans with Disability Act of 1990 have no general record requirement under the law, but to meet the requirements all records relating hiring, promotion, demotion, transfer, layoff or termination, rates of pay, and selection for training or apprenticeship should be kept for one year from date of action.

The Age Discrimination in Employment Act of 1967 requires that you keep the following records for three years:

name address date of birth occupation pay rate compensation earned

You also keep the following for one year from the date of action:

job applications resumes response to advertised job openings records related to the failure to hire an individual

You also must keep all records related to

layoff or discharge of an employee job orders submitted to a placement agency employee administrated by employee physical exams used to make personnel decisions job advertisements

The Immigration Reform and control Act requires that you must retain copies of the I-9 Form for three years after the date of hire.

advertising blog news

How Your Business Can Save $6500 per Year

2008-01-20T02:12:00.000-08:00

If you run a small business, you probably have a hidden expense that's eating your time, and your business's money: Tracking employee time and productivity.

When businesses are small, traditional practice is to use some sort of manual time keeping system to log employee hours. Each employee fills out a paper time sheet, the payroll administrator goes over the time sheets, cuts the checks, handles the deductions and government paperwork, and deals with requests for time off, overtime and vacation days.

As businesses grow and add employees, this manual system becomes more and more cumbersome. The steps to automation start out small - an automated punch clock and pre-printed time cards, and a rapid switch from manual time keeping to using a spreadsheet.

But even this level of automation requires manual re-keying of data, and as the number of employees grows, the more demanding the needs are for your time and attendance and payroll systems. A lot of businesses end up "trapped" with a legacy system, usually cobbled together out of several different parts, perhaps even with custom programming in the mix.

Payroll accounting is a repetitive and aggravating task which takes up valuable administrative personnel who could be serving your business in other revenue generating capacities. Even with all the automated steps described above, payroll calculation errors account for nearly 10 billion dollars in assessed fees and lawsuits annually in the United States alone. Some estimates say that one in four employers make regular and habitual payroll errors, mostly dealing with withholding or insurance deductions. Others say this estimate is undercounting the problem, and that as the tax code gets more arcane, it will only get worse.

The single most common cause of payroll errors is, well, human errors. Especially in systems with paper based punch clocks or manual time cards, human error (as simple as transposing digits or double entering figures) can be very costly, and cause the need to do adjustment checks or entire correction payroll runs. Most payroll errors are in the range of 1-8%, and even at 1%, when multiplied over several employees, adds up to tens of thousands of dollars of lost revenue.

Human error gets compounded when paper time cards get smudged, coffee gets split on them, employee's "buddy punch" for each other or they just record their time inaccurately. Couple this with the time spent to verify results, and the time spent doing payroll accounting (an average of 7 minutes per time card per employee), and you'll see that a lot of this could be eliminated if you had an automated time and attendance system with integrated payroll processing functionality.

In addition to paying for itself in saved time and reduced error rates, an automated time and attendance and payroll system provides your management team with accurate information about which employees are in on time, and how many man hours (and dollars) are being spent on each part of a project, an important part of cost accounting and project management.

Furthermore, if you ever need to run a labor audit, an automated system gives you total hours worked per employee per day on a project, in real time. A fully automated system also helps prevent "buddy punching" and other tricks that employees can use to cover one another's tardiness or absenteeism. These systems give you the real time data needed to manage your personnel.

Ultimately, using time and attendance software with integrated payroll functionality gives you a streamlined and more efficient set of business practices, which is obviously a benefit to your bottom line. From a manager's perspective, these software packages allow you to look at attendance records by employee, money spent by project, as well as other important information about how your operation runs, all from a simple web browser interface.

These systems can even be used to let your employees do "self service" of several routine human resource related tasks - checking their time sheets, getting access to pay stubs, even arranging shift swaps or schedule changes, all from their web browser at home or at work.

Given the cost of payroll errors, most automated time and attendance and payroll solutions will pay for themselves in under a year by saving time for staff and reducing payroll errors. Indeed, if you assume a business with 20 full time employees averaging 10 dollars an hour - say a retail business - a 1% error rate translates into roughly $6500 dollars a year, which in most cases is much more then the software costs itself.

continuity disaster recovery

Outsourcing Your Payroll Processing - A Great Way To Save Valuable Time And Money

2008-01-18T02:44:00.000-08:00

Outsourcing your payroll is one of the most used solutions to companies that are looking for an economical payroll solution. The basic concept is that by utilizing a processing company you are using an expert group of professionals to manage your company payroll needs. Accuracy and reliability are the minimum requirements of a payroll processing organization.

This will allow companies the opportunity to concentrate on developing other departments and concentrate on marketing and product development. By relieving companies the burden of having to staff an in-house payroll department and the expense software that is required to maintain their records.

Outsourcing your payroll to a reliable, professional company will ensure timely employee checks and deposits of federal taxes. Managing and processing your employees checks includes, court required payments, pension contributions, employee record management and accurate reports. In addition, most processing company's mange the timely filing of your payroll tax obligations to the IRS for federal reporting, by keeping track of deadlines and constantly changing laws and reporting requirements.

Proper communication and set with the service company will avoid confusion from the start and throughout their service time. Most processing services are flexible and easily integrate themselves into your business easily. Utilizing an outsourced processing service allows a number of options that would otherwise not be available to your employees, such as debit cards, online reporting and the ability to store and maintain their paycheck stubs.

Many processing services use custom software that is capable of generating checks, reports processing taxes, calculating deductions as soon as the payroll is entered into their system. Taxes are deposited into the appropriate accounts right away, so you will not have to worry about them getting paid on time and will avoid costly penalties and possible fines.

With the advancements in technology and the internet, several companies have begun to offer online processing. A web-based system allows users to securely and accurately process their payroll and print reports and paychecks in there our office.

Processing using an online portal provides a great deal of flexibility for the employer. You can maintain your employee records online, manage your payroll taxes, monitor your expenses and even print checks right from your own computer. All without additional software to purchase, processing online makes great business sense.

When it comes to outsourcing your payroll, by either utilizing a company online or not, there is a good possibility that you will save a lot of time not to mention money. Money that is better on the bottom line.

branding news

Payroll Check Fraud Incident

2008-01-18T02:28:00.000-08:00

Payroll check fraud came calling four days before Christmas. A branch of our main bank called and wanted to verify a check. The young lady who took the call in our office quickly realized that the check was out of sequence and for a person not on the client's payroll. The check was cut on our trust account. I spoke to the bank employee who had called us. They were stalling the person by having then fill out an account application, more about that later. I took the location of the bank and called the local police department. Of course I didn't have the right exact city and had to make an additional call. The police finally were dispatched to the grocery store where the branch bank was. The woman trying to cash the check was gone. But the police were fairly sure that they would apprehend her soon. Next day she tried to pass a check on someone else at a different bank. The police were called and she was arrested and turned over on a filed warrant to the police I had called. They had issued a warrant the same day she cashed a check on us and had given the bank as part of the paperwork a copy of her real drivers license. No one ever claimed crooks were smart.

She had cashed eight checks on our account for about eight thousand dollars total. Checks under a thousand dollars are easier to cash.

We have a very sophisticated check with all kinds of safeguards against fraud. Special paper, void pantographs, MICR lock, warning legends, artificial watermarks, colored paper and more. So what happened. The scammer and her cohorts simply copied the information including the MICR information on to new check stock. They actually didn't need a real check; they could have used a copy. They however changed the identifying information for the particular employee the original check was issued to. We currently have not been able to identify that person but we probably will in the end. The scam artist would not have changed the information if they were not interested in protecting the person whose check it was originally. There was no way to make the information on the check not available to the scammer. The employee, the employee's bank and our bank need all that information. So what do we do in the future to prevent this? Positive Pay.

Positive Pay is where we now report every issued check to the bank. They keep a list of the check number, date issued, amount and Payee. Also whether that check has ever been presented before. Any check being cashed at a branch is verified against that list before being allowed to clear. Every check being presented to the bank is verified against that list before being accepted for clearing. This should stop checks like this from being cleared in the future. It will not stop scammers from creating them. There is easy availability of check stock and MICR ink and printers. This may seem like a slam duck to scammers but we are not worrying as much now with Positive Pay in place.

How do you stop this completely? 100% Paperless Payroll! If you are not issuing checks there is nothing for a scammer to create or cash. I have not seen where a scammer has been able to get into the Federal Reserve and NACHA to be able to create fraudulent ACH deposits to their accounts. Even then they would be a lot easier to trace and track down. The scammer would have to be bank customer and have been verified by the bank when they set up an account. For employees without bank accounts Payroll Debit Cards work just fine.

We of course have every intention of assisting the local DA in the prosecution of this person and her cohorts in crime.

accounting blog news

National Medical Support Notice, Employer Requirements

2008-01-18T02:12:00.000-08:00

A National Medical Support Notice (NMSN) may be sent to you, if one of your employees has a child support obligation, by a state child support enforcement agency (CSEA). The NMSM is a standardized form that advises you when your employee has been ordered to provide health insurance coverage for a child through your company's health plan.

The NMSN is a federal form that all state child support enforcement agencies must use. If an order has been issued and health coverage is available through the employer, the child must be enrolled by the Plan Administrator.

The standardized NMSN does have some advantages for the employer:

It provides uniform documents so the employer does not have to learn 50 different forms and ways of doing the same thing. The NMSN meets all ERISA requirements under section 609(a)(3) & (4) and is in fact a Qualified Medical Child Support Order. It satisfies state law for withholding employee contributions for the child's health care coverage. It also sets up the priorities for withholding when withholding is inadequate to cover child support and a NMSN. The NMSN states the duration of the medical support withholding and should have the name and address of a contact at the CSEA.

The NMSA consists of four documents. Part A, " Notice to Withhold for Health Care Coverage" Part B, Medical Support Notice to Plan Administrator" Responses to Both Notices

The following five steps are a summary of what the employer is responsible to do under the NMSA without compensation for his time or trouble.

Step One: Determine if the NMSN really applies to you or an employee of yours under the four listed categories. If so complete the response portion and send it back to the CESA it came from. Step Two: If none of the response categories apply send Part B of the form to your Plan Administrator. Step Three: The Administrator should notify you when the enrollment is complete at which time you tell your payroll department or payroll service provider how much to deduct from the employee and on what basis. Step Four: If the combination of the premium amount and the deduction for health care exceed the maximum allowable deduction the employer has to look at state law to determine the priority of the payments. If state law priorities keep the employer from paying the premium complete the Employer Response and send it to the CSEA. Step Five: If enrollment for the child cannot be completed until a future date or until some other action takes place you need notify the Plan Administrator when the employee will be eligible to enroll. You should also notify the CSEA of the time frame involved.

accounting blog news

Payroll Tax Troubles - Employment Taxes Gone Bad

2008-01-17T00:44:00.000-08:00

Payroll tax disputes can destroy a small or medium business and have a disastrous effect on business owner's personal finances. This article will provide a general discussion of the typical payroll tax controversy and some tips on how to address payroll disputes.

Payroll taxes disputes often arise when businesses fail to timely file employment tax returns (such as the Forms 941 or 940) and/or when businesses fail to timely remit their employment taxes to the IRS.

In either case, the IRS will assign the matter to a Revenue Officer. The Revenue Officer's job is to interview the taxpayer and third parties in order to (1) collect the tax return and payment in full or (2) gather enough evidence to pin the trust fund recovery penalty on as many individuals as possible.

The trust fund recovery penalty is the mechanism whereby the IRS sidesteps the protections of the taxpayer's legal entity to impose a personal liability on each individual who could have seen to it that the taxes were paid. The IRS refers to these people as "responsible persons." The penalty imposed on "responsible persons" each individual is equal to 100% of the unpaid taxes at the time that the Revenue Officer assesses the penalty.

There are a number of court cases which specify who is and is not a "responsible person" for purposes of this IRS penalty. A number of cases have even held that persons who are the CEO of the company may not be the "responsible person" in some circumstances.

Taxpayers who find themselves subject to this penalty will want to hire an experienced tax attorney immediately. In many cases the tax attorney may be able to convince the Revenue Officer that the taxpayer is not a "responsible person" or make other taxpayer-favorable payment arrangements; thereby avoiding the trust fund recovery penalty altogether.

In other cases the tax attorney can help build a case that the IRS determination as to who is the "responsible person" is incorrect. These facts must be included in the IRS record at the time that the Revenue Officer is working the case and, unfortunately, Revenue Officers do not add this information to the case file without strong pressure to do so.

If taxpayers miss these opportunities, then they still may be able to ask a different function or branch of the IRS to remove the penalty. If that fails, taxpayers can ask the courts to rule that the IRS was not correct in determining that he or she was a "responsible person" and imposing the civil trust fund recovery penalty.

This can be difficult in cases where the taxpayer has failed to timely file employment tax returns. The Supreme Court, in a case that is often cited by the IRS in the payroll tax context, essentially said that there is no excuse for filing a late tax return. A number of courts have echoed this sentiment.

The Third Circuit Court of Appeals has extended this reasoning to say that "yes, there is no valid excuse for filing a late return unless the taxpayer is does not find themselves in the position of the ordinary taxpayer." It is up to individual taxpayers to show how they are not the "ordinary taxpayer."

An experienced and creative tax attorney can go a long way in helping to eliminate, resolve or minimize the damage that employment tax controversies have on small and medium sized businesses and their owners.

Source: http://ezinearticles.com/?Payroll-Tax-Troubles-Employment-Taxes-Gone-Bad&id=536852
branding news

Non Profit Payroll

2008-01-17T00:28:00.000-08:00

Non Profit Organizations have some unique situations when addressing payroll and payroll taxes for their employees. Here we are addressing here many of the common payroll situations for Non Profit Payrolls.

Non Profit Payroll: Employee Records

There are many state and federal laws and regulations concerning employee records that can be confusing and some times contradictory. What employee records should you keep to be safe? The following items if you actually have them (and you should) need to be kept in employee's personnel files. We recommend for audit and IRS purposes that you keep them for at least seven full years.

Employee job application Reference and background checks Offer of employment Job description IRS Form W4 State W4 equivalent HLS Form I9 Employee benefit enrollment or declining forms Annual performance evaluations Interim evaluations or disciplinary forms Exit Interview

Additional possible forms to keep

Copies of any statements furnished by employees relating to nonresident alien status, residence in Puerto Rico or the Virgin Islands, or residence or physical presence in a foreign country Any agreement between you and the employee on Form W-4 for voluntary withholding of additional amounts of tax Requests by employees to have withheld tax figured based on their individual cumulative wages and any notice that such a request was revoked IRS Form W-5, Earned Income Credit Advance Payment Certificate, and the amounts and dates of the advance payments

Non Profit Payroll: Payroll Pay Records

Each employee's name, address, and Social Security number The total amount and date of each wage payment and the period of time the payment covers The amounts subject to withholding for each wage payment The amount of withholding tax collected on each payment and the date collected The reason, if the taxable amount is less than the total payment The fair market value and date of each payment of noncash compensation Information about the amount of each payment for accident or health plans The dates in each calendar quarter on which any employee worked for you, but not in the course of your trade or business, and the amount paid for that work, if necessary to figure tax liability Copies of statements employees give you reporting tips received in their work, unless the information shown on the statements is in another item on this list

Non Profit Payroll: Employees

Officers and Directors

The Internal Revenue Code defines the officers of a corporation-president, vice president, secretary, and treasurer-as employees, and your 501(c)(3) must classify them as such for tax purposes. This applies if your organization pays these officers to perform their duties as officers.

A 501(c)(3) should not classify a corporate officer as an employee if he or she performs no services, or performs only minor services and neither receives nor is entitled to compensation.

By contrast, the Code defines the directors of a corporation-that is, members of the governing board-as nonemployees, and your 501(c)(3) must classify them as such for tax purposes. This applies if your organization pays its board members to attend board meetings or otherwise compensates them for performing their duties as directors.

Volunteers

From time to time, some 501(c)(3)s may provide volunteers with awards, or gifts. In general, if these are non-cash items of nominal value, such as a ham around the holidays, your organization should not count these items as taxable wages.

If your 501(c)(3) gives volunteers cash items, such as gift certificates or any other taxable fringe benefit, it must include these items in the volunteers taxable wages.

Employees

If a person is not an officer, director or volunteer and you compensate them for work done and they are not an independent contractor, they are an employee. Like other employers, 501(c)(3)s that pay wages to employees must pay Federal Employment taxes on those wages. These taxes include:

Federal income tax FICA taxes (Social Security and Medicare)

Non Profit Payroll: Federal Income Tax Withholding

Your 501(c)(3) generally (except Statutory Employees) must withhold and pay Federal income tax from its employees' wages.

To figure out how much Federal income tax to withhold, employers should ask employees to complete IRS Form W-4, Employee Withholding Allowance Certificate. Ask each new employee to complete and sign a W-4 by his or her first day of work. Keep the form on file, and send a copy to the IRS if the IRS directs you to do so in a written notice.

If a new employee fails to provide a completed Form W-4, your 501(c)(3) should assume single status with no withholding allowances.

Non Profit Payroll: FICA Taxes

FICA taxes go toward Social Security and Medicare. Your 501(c)(3) must withhold and pay these taxes from employees' wages, with one exception: If your organization pays an employee less than $100 in any calendar year, it need not withhold FICA taxes for that employee. A 501(c)(3) must pay both the amount of FICA tax withheld from employees' wages and the organization's match of that amount.

Non Profit Payroll: Federal Unemployment Taxes

The following is a direct quote from the IRS 940 instructions available at the following link: http://www.irs.gov/instructions/i940/ch01.html#d0e251

"Religious, educational, scientific, charitable, and other organizations described in section 501(c)(3) and exempt from tax under section 501(a) are not subject to FUTA tax and do not have to file Form 940. "

What it comes down to is that if you are a 501(c) (3) and you have received your favorable determination letter from the IRS you don't have to pay Federal Unemployment taxes.

Non Profit Payroll: State Unemployment Taxes

States vary on unemployment taxes on non profits and you should check with your State Unemployment Insurance Department for the rules in the States you have employees.

Non Profit Payroll: Paying Federal Income and FICA Taxes

Your 501(c)(3) must pay withheld income taxes, together with both the employer and employee portions of FICA taxes (minus any advance earned income credit payments). These payments must be paid electronically using the Electronic Federal Tax Payment System (EFTPS) or by mailing or delivering a check, money order, or cash to an authorized depositary. Note that some taxpayers are required to exclusivly deposit using EFTPS. Check with a qualified non profit payroll tax professional for additional information.

Non Profit Payroll: Reporting Payroll Taxes

Once your 501(c)(3) deposits the Federal income and FICA taxes, it must submit returns reporting that it has withheld and paid them. Just as the 501(c)(3) pays Federal income and FICA taxes together, it must report them together on IRS Form 941Employers Quarterly Federal Tax Return. They must also be reported annually on IRS Form W2 a copy of which is also distributed to your employees

Non Profit Payroll: Conclusion

There are many similarities between Non Profit Payroll and For Profit Payrolls but several differences not all of which have been discussed here. We always recommend that you use a qualified payroll outsourcing company with CPA's on staff. That way your questions can be answered professionally and any problems solved by a CPA who is eminently qualified by training and experience to work with the IRS on payroll tax problems.

Source: http://ezinearticles.com/?Non-Profit-Payroll&id=499360
careersemp loyment

Maintaining of Paper Invoice Bill by Small Business

2008-01-16T01:38:00.000-08:00

In all business whether it is big or small the different account process to handle the bill payment and invoices are nearly same. This account process is of two types: account payable and account receiving. Since these account process deals with cash flow so it should be handle carefully. In this generation Y there is several technologies like online bill payment, electronics invoicing which helps to removes the tedious paper work. But practically till today it has helped but cannot remove the paper work fully.Even today 80% of the invoice come in paper in small business" says the Aberdeen Group research report.

Management of Onslaught paper In Accounts department
Different companies like Kofax, ReadSoft, AnyDoc and Abbyy developed data capture solutions for converting all the paper based invoices, checks, bills, and other documents into data to sent to the accounting or ERP systems. Large companies are using this software to increase the efficiency of the account department and they are successful in it. They have made productive gain in the accounts department.

But small company can not use this software. Instead they do the maximum work manually. They use software only to scan their paper containing accounts documents. This is not a cost-effective solution.

Reason for which small businesses are not using automatic account data capture software Most important reason is cost of this software is high. So small business firm cannot bear it. Not only buy this software but you have to also bear the cost of:
1.. Licensing Fee for the software (User based or CPU based access)
2. Hardware upgrade to install the software
3. Training for your employees
4. Software support and maintenance

This Software may not be suitable for the interface used by you. Then you again have to change the interface to suit the software.

Invoice bill , checks comes in different size and shapes. Important documents like customer name, address, amounts are written at different places in the paper documents. Now if the paper documents contain hand written notes then it may create problem for the software as it may not scan the data properly. Vendors still embraced OCR and ICR technologies into their product to capture the account data accurately from the scanned images. So there is a long way to go to remove manual entry.

The solution for small businesses to improve their different Account process.

Small business must use offshore outsource vendor for different account processes. They can use their existing infrastructure to send the data securely through internet to offshore location to get process by offshore vendor. For more details read Cybelink Secure BPO.

Using an offshore provider will not change the process of management in the accounts department of the small business. Only change is per scanned images will be converted to accounting software or ERP system.

After receiving the scanned images, following are the typical tasks performed by the

offshore vendor.

1. Use automated and manual process to extract all the data like invoice number, invoice date, and check number from the images.
2. Hardware upgrade to install the software
3. Enter extracted data to small business accounts software
4. Perform other accounting operations like Invoice preparing, Bill payment, and Check Printing in the small business account software.
5. Export the work from the accounting software to a file.
6. Send the file to the small business to import it into their accounting software for verification.

After receiving the finished files from the offshore vendor, small business companies can import it into their accounting or ERP systems for verification and further processing it.

Cost of paper document reduces by 50% if this off shoring is done. Small businesses need to overcome issues like offshore security and offshore outsourcing cultural issues. But by carefully managing their offshore vendors' small businesses can gain the cost reduction and operational efficiency in their accounts payable and account receivable operations.

branding news

Why Raising The Minimum Wage So Quickly Is Bad For Everyone.

2008-01-16T01:22:00.000-08:00

The minimum wage issue has recently been debated in the Senate and after some debating and amendments; the minimum wage will increase to $5.85 per hour, effective July 24th 2007, $6.55 per hour, effective July 24th 2008 and $7.25 per hour, effective July 24th 2009. Since the minimum wage law was passed in 1996, there has been nine attempts to raise the law and nine attempts failed. To the low income worker a sigh of relief can be heard. The increase in pay allows the lower skilled workers to a greater disposal income and spend on essential items or save for the future. Society benefits from greater revenue in sales tax from the increase in spending. This would help fund need programs in the community.

These are a few of the assumptions that democrats and anyone who is pro an increase in minimum wage wants everyone to believe. This is so far from the truth that it is appalling. John Edwards is so animate that he introduced an amendment to assist with the passage of the bill. He declares the lower class workers need it; they really need this to happen. John Edwards must have failed Economics 101 and slept right through a finance class, since this is not what the lower class impoverish workers need for their salvation. Basically, democrats are saying more money will save you from your money worries and here are a few nickels and dimes to appease you.

Economics teaches us about the law of supply and demand. A business that employees worker at the new wage of $7.25 are forced to raise prices beyond their normal rates. Good old inflation allows business owners to raise their prices at least 3% a year, which is the average inflation rate in the US. Employee's wages is calculated as a variable cost from accounting, and variable cost can be reduced when its price is excessive. The variable cost is figured into the price of the product or service of the company. Employers either have to raise the price of their product to maintain their profitability or lay off employees to stay competitive with other firms.

A business's value chain analysis will appear extremely expensive at any point where workers handle their product from harvesting their raw materials to serving the final product to the consumer. A company that desires to maintain profitable analysis's their value chain to determine the cost drives and implement ways to reducing their overall cost. The increase employees wages, which is a variable cost, has increased dramatically over a period of time, these costs are the first to be reduced by lay offs. Not only lay offs, but reducing the total workforce for their lower paid workers. Have you ever waited in long lines at a fast food restaurant or waited to be seated at a sit down restaurant? Now imagine fewer workers due to costs and more of your valuable time wasted for the same service.

Raising minimum wage is not the solution to the low income workers; this is a political smoke screen by the democrats to pay off this sector of voters. Education increases individual's value to employees, not legislative from Congress.

Business online blog

Reviews on Top 3 Payroll Tax Software for Small Business

2008-01-16T01:05:00.000-08:00

If you have a small business you know that you have to keep all of your financial records as organized as possible to ensure that you can make payroll accurately as well as file an accurate and timely tax return. There are many different programs for you to choose from, which can make the process of getting organized a bit overwhelming. Most programs today are very easy to use, and once you get the hang of it you can make payroll as well as tax payments very easy to deal with.

If you need help with payroll taxes you might want to look at a program such as QuickBooks. This program is manufactured by Intuit and is one of the leading programs for small businesses that need accounting software. There are several different versions available such as QuickBooks Basic, the QuickBooks Pro, as well as QuickBooks Premier. This online tax program has time tracking software that is nice, and the program is available for both Windows and Macintosh based computers. Many find that this has all of the features that they need because it allows them to do tracking, banking, invoicing, statements, and more all in one program.

Another great small business software is Small Business Money by Microsoft. This software has been created with business in mind and allows for users to create invoices, track spending, manage cash flow, handle payroll and so much more. There are different versions of this software available so that small business owners can find the version that best suits them and their specific needs. Many report that they like Money because it is very easy to use, without all kinds of extra bells and whistles that simply get in the way.

If you need help with payroll taxes and accounting you may also want to check out Peachtree. This is a great accounting software that will allow you to track spending, handle payroll, and do basic account management very easily. The software is meant to be used by small and medium sized companies and works much like Quicken and QuickBooks, though some prefer this program and its small differences that it has.

As you can see, there are many different programs on the market today that can help small and medium sized companies handle their payroll taxes and other day to day business maintenance. Many find that trial and error is the best way to find the program that works for them. Making a list of your basic needs will help you find the program that is best for you.

advertising blog news

What's Your CTC?

2008-01-15T04:19:00.000-08:00

'IT and IT enabled services' Professionals beware. What you get is not always what you will get.

When you get your offer letter, you will be pleased to find out an impressive looking figure on it. You would also notice that the letter also mentions your salary break-up. The accounts personnel would probably explain you the basic calculations. But you prefer not to talk about it then. At the moment you are overjoyed by winning the bargain. You are on a high. You are delighted and you want to celebrate your victory.

But what happens when you get your first salary? You are disappointed. Why? You feel cheated. Why? You are depressed. Why? Let's find out.

Let's say your package is 5 lacs. You know that your PF is deducted from your salary. Considering components like performance incentive, gratuity, income tax, and other standard components, when you get your salary slip, you find that there is something missing. A portion of your salary is not documented.

Surprisingly, when you calculate the missing amount, you find that it is equal to 12 times your monthly PF deduction. Hold on a minute here. Relax and unfold your salary slip. Now calculate your monthly gross income. Then annual gross and then try to confirm your CTC. You will find out yourself.

Yes! The PF deduction that shows on your salary slip is the company contribution. Your contribution is not documented on your slip. It is documented no where, not even in the offer letter or the agreement letter.

What are you waiting for? Go ahead and confirm. Henceforth before you accept any new offers, beware!

change management

How To Pay Employees With Cash In Quickbooks - Best Way To Protect Your Business

2008-01-15T04:01:00.000-08:00

Sometimes businesses need to pay their employees with cash, verses issuing a paper paycheck. There are a couple reasons the business may want or need to do this:

The business is having cash flow problems, and paying employees from cash is easier to manage. The employee may not have a bank account. Cashing a paycheck is difficult and/or expensive, and direct deposit is not an option.

Businesses should never simply hand employees cash for work performed. There must some type of paper trail to prove:

in what manner the employee received the funds when the employee received the funds how the gross pay was computed what employment taxes were withheld from the pay; gross pay vs. net pay.

Every single one of these is a potential issue that could arise in the event that the employee disputes the pay, or in the event of a employment tax or work comp audit.

Here is how to pay employees with cash, while still protecting the business from potential problems:

1. The business must be set up with some type of payroll service. Either QuickBooks must be enabled to perform payroll, or an outside service should be used. Either way does not matter, but somehow payroll taxes, etc., must be computed correctly.

2. Generate a paycheck in the normal way, using the checking account to draw from, or a special checking account for payroll, if you have one.

3. Have the employees endorse the checks - he/she is signing it over to you.

4. Pay the employees cash. It must be the exact amount on the checks, to the penny. No fudging here! This is important, because the cash paid out must reconcile to the check amounts. If the amounts are not exact, it will be difficult to reconcile them.

5. Take the checks to the bank and deposit them back into the checking account. Don't void them in the software. Although voiding them has the same net effect on the bank balance, the accounting software cannot compute the gross pay and payroll taxes correctly if they are voided.

Another alternative is to simply create "dummy" checks on blank paper. Make sure the employees put their signatures on them. Pay with cash, to the penny.

The employee's signature on the paycheck or "dummy" check is crucial - this way, the employee cannot claim he/she was not paid.

Following this method, you are simply cashing the employee's paychecks for them. This leaves a very good paper trail for your accountant or auditor to follow. Everything is clean, above-board, and easy to understand.

My thanks goes to Suzanne Mead, Certified QuickBooks ProAdvisor over at http://forums.quickbooksusers.com/index.php, for this excellent tip. Thank you Suzanne!

advertising blog news

How To Pay Employees With Cash In Quickbooks - Best Way To Protect Your Business

2008-01-15T03:43:00.000-08:00