Whether you have two, 250, or thousands of employees, payroll processing is an ongoing necessary business function. At some point, you may want to consider better options than in-house manual payroll and look at payroll processing services.
If you have a high number of employees and don’t want to dedicate a large amount of internal efforts, you could use full-service payroll outsourcing along with human resources features for hiring and managing employees. Or if you want to keep control of submitting your payroll taxes but want a service to process your payroll, calculate your payroll taxes, and report on your payroll, online payroll services may fit your needs. A valuable tool in outsourced and online payroll services is a payroll calculator, which makes the payroll process quick, easy, and accurate.
When You Outgrow QuickBooks
Many entrepreneurs and small businesses rely on accounting software like QuickBooks, which has payroll functions included. But when a business grows to more than a few employees, a more robust payroll solution is required. It’s at this juncture that business owners must choose between keeping payroll in-house and writing payroll checks themselves, or using online payroll services to totally outsource payroll for automation, accuracy, and compliance.
The complexities of payroll processing, tax deadlines and compliance, and record-keeping, combined with the need to keep up with changes in employment and tax law, make outsourcing an attractive choice for busy companies. Reporting and paying all payroll taxes, running payroll, keeping payroll records for the legally required time, and reporting tax returns are all detail-oriented and time-sensitive tasks that take time and attention away from core business operations.
Payroll calculators are a key part of outsourced and online payroll processing. Usually accessible 24/7, they allow you to calculate payroll numbers systematically, providing less chance of error. There are different types of payroll calculators, including gross-up, paycheck, FSA, and payroll deduction calculators, to focus on specific areas of payroll processing.
A gross-up calculator shows gross pay using take-home pay and deductions. A paycheck calculator shows the take-home pay when rate and deductions are entered. Payroll deductions calculators and payroll tax calculators provide accurate information about how much to deduct from paycheck and how much to take out in taxes when preparing to run payroll. FSA calculators help when processing FSA deductions for benefits by letting you plug in either the flat FSA contribution or percentage rate for deduction. Other types of payroll calculators include earned income credit, marginal tax rate, and self-employment tax calculator.
The plug-and-play ease of payroll calculators makes them a key feature in automating payroll processing. They are always up-to-date with compliance issues and ensure accuracy in much less time than with manual processing, only depending on the validity of initial entries for accurate calculations.