How to Enable Payroll Service

Paycheck

Many employers outsource the job of paying their employees to a payroll service. The payroll service is responsible for handling their clients' payroll processing. Generally, before the payroll service begins processing each payroll, the employer is required to forward the relevant payroll data to them.

Instructions

1. Install the payroll service's software onto your computer; this can be done via the Internet according to the instructions provided by the payroll service. Once the software is installed, compute the amount of hours each employee will be paid. Enter the information in the payroll system. Before sending the data, print the relevant payroll reports and double-check what you have entered. Most payroll companies will allow you to fax or email the information if you are unable to install their software.

2. Fax, email or enter any adjustments necessary for the current payroll or future payrolls to the payroll service. These adjustments can include correcting an error from a prior payroll, tax changes, salary increases, pay decreases or retroactive pay. Forward changes to an employee's personal information, such as name and address, to the payroll service as they occur.

3. Enter all personal, sick or vacation hours in the system or send the data to the payroll service. It will store and track the information. Keep a copy of what you send to the payroll service in case you need to it. Make other benefits changes (401(k), health, dental, vision) in the system or forward them to the payroll service via email or fax. The payroll service will monitor all premiums paid.

4. Make the payroll service aware of any financial changes that can affect the employees' direct deposit. If you changed your bank account and routing numbers, notify the payroll service immediately; a delay can result in untimely direct deposits and angry employees. Notify the payroll company of changes in employees' direct deposits as well.

5. Establish an effective courier/mailing method with the payroll service. You want to ensure that the employees' checks will arrive as scheduled. Formulate an agreement with the payroll service so you receive copies of all quarterly and annual tax filings plus benefits or retirement tax filings if they apply. Transmit all issues relating to taxes to the payroll service so they can make the necessary adjustments as they occur.

Tips & Warnings

• Choose a reputable payroll service that will provide you with stellar client service. Make sure the payroll service understands your needs before you employ them. Read and comprehend the fine print before signing the initial contract.

References

• Will Outsourcing Payroll Make Your Life Easier?