Payroll outsourcing companies is a type of PEO (Professional Employer Organization) services companies, although they have chose to specialize on providing payroll and tax administration services, which generally goes hand in hand, anyway. Here's why you should consider payroll outsourcing.
1. Cost reduction.
Just how much do you pay the entire Human Resources department? Companies operating in small to medium scales may not even have an HR department, or even an HR staff. They would most likely have one payroll administration office on-board. The salary of a payroll administrator may range from $8,000 to $12,000. You also have to consider one of your employees spend on encoding payroll information and what you pay for the technological support for payroll. Large scale companies have an entire IT department as back-up and small business generally have one computer guy or even hire a moonlighting IT expert every once in a while. Compare the total payroll-related costs to what you would need to pay for the services of a payroll outsourcing company.
2. Focus on core operations.
Fact is, payroll work is mundane and even the most loyal employee will feel so, even when she doesn't complain out loud. Even when you get someone who doesn't "mind" doing the payroll work, you can be sure that time spent on anything not payroll-related is time well-spent. This is because payroll work is by no means a strategic; it doesn't play a role in branding or in increasing market share or in generating product exposure. With payroll outsourced to third parties, your staff will be able to focus on core operations.
3. Compliance.
Payroll outsourcing companies also offer tax administration services and these are generally bundled with payroll services. This means that they get to carry out filing and tax-related work. What's even better is that they know the ins and outs of the tax laws of your state so you can be sure that compliance to government tax rules and regulations is checked. You wouldn't want frequent tax-related clashes with the government, would you?
4. Good feedback from employees.
Let's face it, nobody likes receiving paychecks which are incorrect. It is a hassle to have to consult the payroll officer about it. With outsourcing payroll work, you are reasonably sure that you are acquiring the services of people who can do the payroll-related tasks excellently.
5. Accountability.
Alright, so you might have hired experts, but the truth is, glitches may not be altogether avoided. Paychecks may be delayed and there could be problems with paperwork. However, you do not have to deal with the headache; it's up to the payroll services company to take care of the problem. Now, if you don't like what the payroll company is doing, you can sue them or find another one. How easy do you think will it be to fire a payroll officer which you feel is not doing a good job at all, what with the labor laws of the country? With outsourcing, you get a lot of options.
6. Speed.
Payroll companies have what it takes to get your payroll tasks done, in terms of industry knowledge, legal expertise and technology. This means that payroll processes are completed at top speed. Even when you are a small business who sometimes hires part-timers or seasonal workers, you can be sure payroll companies will have systems that can assist with that.
7. Security.
A lot of business operators aren't comfortable with the idea of third parties' gaining knowledge about an aspect of their operations when the truth is payroll companies are good at curbing security problems.
The Power of Virtual Accounting
The coming to age of cloud computing has brought about a large number of commercial opportunities and efficiencies available to the business community, particularly small and medium enterprises (SMEs). One of the opportunities and efficiencies is virtual accounting or, as some protagonists like to put it - cloud accounting is one of the strong emerging service offerings. What started as a theoretical computing possibility is indeed a reality today.
Accounting controls have progressed from the days when it was considered a specialised and an awkwardly difficult task, fraught with illogical principles that undermines business freedom. Accounting packages such as peachtree, Sage, MYOB and so one have made very useful contributions in reducing the difficulty of day-to-day accounting, but these programmes appeared to add to the learning curve and accessibility is limited to the computer system that they are installed on.
Some rather slick and simpler solutions are emerging in the market based on cloud computing principles. The ability to access your books of accounts and useful performance reports at anytime and from anyplace with internet connectivity and the simplicity of use that virtual or cloud accounting solutions bring has accelerated the uptake. Users are instantly amazed at how easily they have been able to manage their books by themselves or through a part time accountant working remotely. This brings additional opportunities of efficiency and reduced.
Clearly, the economic benefits of virtual accounting significantly outstrip its costs by several multiples. Like most shared services, the installation, support and maintenance costs are spread across the number of users bringing the unit costs down over time. The commoditisation of accounting computing power as an anytime and anyplace services has been helped in no small measure by advances in telecommunications. Significant improvement in wired and wireless communication bandwidth, the ubiquitous WIFI access in major cities in Europe and the smart phone revolution, have made virtual accounting the best solution for SMEs.
Whilst technology and the growth of personal wealth have delivered a range of possibilities, it is not an excuse for carelessness. Accounting is no less a serious matter than it was 50 years ago. Diligence is still required to ensure that accounts reflect a true and fair view. The level of regulatory scrutiny and the keenness of tax authorities to grow national revenue in the challenging economic circumstances of today cannot be over emphasized. Users of virtual accounting services must ensure that their records are accurate and complete.
Simple steps to harnessing such strengths include:
1. Using reminders to plan their accounting and administrative tasks including invoicing, bank reconciliation and updating the books account.
2. Using the invoicing and chaser facilities (e.g. email reminders) on virtual accounting solutions to manage their business operations and working capital.
3. Accessing their account reports regularly either directly or through part time accountants to ensure that the books reflect what they expect.
4. Regularly using the various reports and aids e.g. working capital ratios, sales and profit graphs, that virtual accounting solutions instantly generate to make business decisions
5. Utilising the account closure and financial statement generating facilities and tax filing plug-ins to generate their accounts for regulatory and tax filing purposes.
6. Keep your password strong, safe and secure
The simple steps help ensure that business are well controlled and that regulatory and tax obligations are met in a timely manner.
Recently, the UK tax authorities and the International Accounting Standards Board requirements for companies to file accounts using the eXtendable Business Reporting Language (XBRL) came into play. Traditional accounting packages have had to find add-ons to further process the accounts generated in order to comply. This is an added cost, but virtual accounting solutions are designed to be compliant.
Accounting controls have progressed from the days when it was considered a specialised and an awkwardly difficult task, fraught with illogical principles that undermines business freedom. Accounting packages such as peachtree, Sage, MYOB and so one have made very useful contributions in reducing the difficulty of day-to-day accounting, but these programmes appeared to add to the learning curve and accessibility is limited to the computer system that they are installed on.
Some rather slick and simpler solutions are emerging in the market based on cloud computing principles. The ability to access your books of accounts and useful performance reports at anytime and from anyplace with internet connectivity and the simplicity of use that virtual or cloud accounting solutions bring has accelerated the uptake. Users are instantly amazed at how easily they have been able to manage their books by themselves or through a part time accountant working remotely. This brings additional opportunities of efficiency and reduced.
Clearly, the economic benefits of virtual accounting significantly outstrip its costs by several multiples. Like most shared services, the installation, support and maintenance costs are spread across the number of users bringing the unit costs down over time. The commoditisation of accounting computing power as an anytime and anyplace services has been helped in no small measure by advances in telecommunications. Significant improvement in wired and wireless communication bandwidth, the ubiquitous WIFI access in major cities in Europe and the smart phone revolution, have made virtual accounting the best solution for SMEs.
Whilst technology and the growth of personal wealth have delivered a range of possibilities, it is not an excuse for carelessness. Accounting is no less a serious matter than it was 50 years ago. Diligence is still required to ensure that accounts reflect a true and fair view. The level of regulatory scrutiny and the keenness of tax authorities to grow national revenue in the challenging economic circumstances of today cannot be over emphasized. Users of virtual accounting services must ensure that their records are accurate and complete.
Simple steps to harnessing such strengths include:
1. Using reminders to plan their accounting and administrative tasks including invoicing, bank reconciliation and updating the books account.
2. Using the invoicing and chaser facilities (e.g. email reminders) on virtual accounting solutions to manage their business operations and working capital.
3. Accessing their account reports regularly either directly or through part time accountants to ensure that the books reflect what they expect.
4. Regularly using the various reports and aids e.g. working capital ratios, sales and profit graphs, that virtual accounting solutions instantly generate to make business decisions
5. Utilising the account closure and financial statement generating facilities and tax filing plug-ins to generate their accounts for regulatory and tax filing purposes.
6. Keep your password strong, safe and secure
The simple steps help ensure that business are well controlled and that regulatory and tax obligations are met in a timely manner.
Recently, the UK tax authorities and the International Accounting Standards Board requirements for companies to file accounts using the eXtendable Business Reporting Language (XBRL) came into play. Traditional accounting packages have had to find add-ons to further process the accounts generated in order to comply. This is an added cost, but virtual accounting solutions are designed to be compliant.
The Benefits Of Payroll Services
Many businesses wonder whether they should be using payroll services to help with their payroll tasks. This is an important question that many businesses should strive towards. Here, we take a look at a few of the benefits of these services to recognize how it can help your business. The following list is by no means exhaustive but it should give you an idea of some of the main benefits of exercising this option.
1. Allows businesses to focus on the business.
This is by far one of the biggest advantages of using payroll services for your business. They allow you to focus on your business without having to do a mundane task that most people do not enjoy. This can be helpful in that you are able to focus on what you do best which is the regular business. This often translates into improved performance or being able to catchup on other tasks. This also may allow you to be able to seek out additional business with the freed up time. This can mean you can easily offset the cost of this services by taking on more clients or being able to offer additional services to existing customers.
2. Allows experts to do the payroll.
It also allows the payroll function to be performed by a group that specializes in exactly that skill. For this reason, it increases the odds the work is performed properly and efficiently. This can translate into cost savings as you avoid any penalties for taxes or rework due to errors. This also means you can actually get better overall results in the payroll services than you would if you were doing it yourself. Plus, they will have a better understanding of what the industry requires in terms of keeping records and be able to better provide you with information on new changes due to changes in employment law and more.
3. Reduces stress and risk of malpractice or mistakes.
By being able to focus on what you do best and letting experts do the work, you are more likely to get better results. This will reduce stress on you making it less likely you make some mistakes. It also reduces the risk that mistakes will occur due to being overworked or afraid you have missed something.
1. Allows businesses to focus on the business.
This is by far one of the biggest advantages of using payroll services for your business. They allow you to focus on your business without having to do a mundane task that most people do not enjoy. This can be helpful in that you are able to focus on what you do best which is the regular business. This often translates into improved performance or being able to catchup on other tasks. This also may allow you to be able to seek out additional business with the freed up time. This can mean you can easily offset the cost of this services by taking on more clients or being able to offer additional services to existing customers.
2. Allows experts to do the payroll.
It also allows the payroll function to be performed by a group that specializes in exactly that skill. For this reason, it increases the odds the work is performed properly and efficiently. This can translate into cost savings as you avoid any penalties for taxes or rework due to errors. This also means you can actually get better overall results in the payroll services than you would if you were doing it yourself. Plus, they will have a better understanding of what the industry requires in terms of keeping records and be able to better provide you with information on new changes due to changes in employment law and more.
3. Reduces stress and risk of malpractice or mistakes.
By being able to focus on what you do best and letting experts do the work, you are more likely to get better results. This will reduce stress on you making it less likely you make some mistakes. It also reduces the risk that mistakes will occur due to being overworked or afraid you have missed something.
What Security Features Are Used on Blank Check Stock?
With the advent of MICR printing in home and small-business settings, printing your own checks is easier than ever. Once you have the equipment and software necessary to begin printing checks, the only other thing you need is the proper blank check stock. Of course, security is a crucial element of check printing. Understanding the different aspects of check security can aid in making the right decision when purchasing blank checks.
MICR Lines
MICR technology, or Magnetic Ink Character Recognition, is one of the most basic elements of check printing. Unlike standard ink toner, MICR toner uses magnetically-charged ink which can be read by automated equipment. The MICR line is the series of characters printed along the bottom of the check that includes the account number, the routing number and the check number itself.
If you have purchased a high-quality MICR cartridge from a reliable cartridge manufacturer, this so-called "can't read" rate is generally 1% or less, while the rate of character replacement (reading one character as another) is less than 0.00001% or one in one-hundred thousand. Additionally, MICR ink cannot be obscured by stamps or ink from signatures and memo lines. Using a high-quality MICR printer with the appropriate MICR ink cartridge can ensure high levels of integrity for the MICR line.
Additional security features are elements of the check paper itself.
ABA Endorsement
The American Banking Association Endorsement Clause is printed on the back of ABA-endorsed check paper. It includes a warning indicating that the face of the check contains a colored background. The endorsement also includes a facsimile of the check's water mark and ensures that the check was printed using micro-printing.
Watermark Features
Secure check paper is embedded with a watermark. The watermark identifies the check printer, and changes visually when held up to the light. Additionally, it intensifies when held under a black light. It is printed on the back of the check and ensures that the laser check printing meets ANSI and ABA standards. The watermark is a key security feature because it cannot be photocopied, thus ensuring that the check is authentic and original.
Fluorescent Fibers
Like the watermark, fluorescent fibers are embedded in the check. Under black light, the fibers will intensify. Since this property cannot be transferred by a photocopier, the absence of fluorescent fibers indicates that a check is not authentic.
Copier Void Feature
The copier void feature works in the reverse direction as the water mark and fluorescent fibers. Void text, either in paragraph form or in a series of void marks, is printed on the back of the check and is barely visible unless the check is photocopied, in which case the void text becomes clearly visible, indicating that the check is fake. Copier void text may also appear behind the amount and signature lines.
Rainbow Prismatic Features
Laser printed checks are printed with two-color backgrounds. The colors fade in graduated fashion from one to the other, making these checks very difficult to photocopy accurately.
Micro Printing
The micro printing process involves printing text around the edges of the check that can only be read using a microscope. The text is too fine to be read by a photocopier or scanner, or to be printed using a standard printer. The absence or distortion of micro printed text indicates that the check is invalid.
Heat Sensitive Ink
On some laser printed checks, security or patent information can be printed in thermochromatic ink, which changes color when exposed to heat. The heat-sensitive properties of this ink cannot be transferred by a photocopier.
MICR Lines
MICR technology, or Magnetic Ink Character Recognition, is one of the most basic elements of check printing. Unlike standard ink toner, MICR toner uses magnetically-charged ink which can be read by automated equipment. The MICR line is the series of characters printed along the bottom of the check that includes the account number, the routing number and the check number itself.
If you have purchased a high-quality MICR cartridge from a reliable cartridge manufacturer, this so-called "can't read" rate is generally 1% or less, while the rate of character replacement (reading one character as another) is less than 0.00001% or one in one-hundred thousand. Additionally, MICR ink cannot be obscured by stamps or ink from signatures and memo lines. Using a high-quality MICR printer with the appropriate MICR ink cartridge can ensure high levels of integrity for the MICR line.
Additional security features are elements of the check paper itself.
ABA Endorsement
The American Banking Association Endorsement Clause is printed on the back of ABA-endorsed check paper. It includes a warning indicating that the face of the check contains a colored background. The endorsement also includes a facsimile of the check's water mark and ensures that the check was printed using micro-printing.
Watermark Features
Secure check paper is embedded with a watermark. The watermark identifies the check printer, and changes visually when held up to the light. Additionally, it intensifies when held under a black light. It is printed on the back of the check and ensures that the laser check printing meets ANSI and ABA standards. The watermark is a key security feature because it cannot be photocopied, thus ensuring that the check is authentic and original.
Fluorescent Fibers
Like the watermark, fluorescent fibers are embedded in the check. Under black light, the fibers will intensify. Since this property cannot be transferred by a photocopier, the absence of fluorescent fibers indicates that a check is not authentic.
Copier Void Feature
The copier void feature works in the reverse direction as the water mark and fluorescent fibers. Void text, either in paragraph form or in a series of void marks, is printed on the back of the check and is barely visible unless the check is photocopied, in which case the void text becomes clearly visible, indicating that the check is fake. Copier void text may also appear behind the amount and signature lines.
Rainbow Prismatic Features
Laser printed checks are printed with two-color backgrounds. The colors fade in graduated fashion from one to the other, making these checks very difficult to photocopy accurately.
Micro Printing
The micro printing process involves printing text around the edges of the check that can only be read using a microscope. The text is too fine to be read by a photocopier or scanner, or to be printed using a standard printer. The absence or distortion of micro printed text indicates that the check is invalid.
Heat Sensitive Ink
On some laser printed checks, security or patent information can be printed in thermochromatic ink, which changes color when exposed to heat. The heat-sensitive properties of this ink cannot be transferred by a photocopier.
How Are Pressure Seal Checks Used In Payroll?
As businesses look for ways to reduce costs, new methods of document creation and processing such as using pressure seal payroll checks can offer significant savings. Many businesses, both large and small, have already moved to printing payroll checks in-house, as an alternative to buying pre-printed checks or outsourcing check printing. With a quality MICR printer and blank check stock, businesses can eliminate surplus checks and check printing service fees. Check stock that can seal in this fashion can be used as part of the in-house check printing process to reduce payroll processing costs even further.
What are pressure sealing check forms?
Pressure sealing forms are documents - such as payroll checks and W2 forms - printed on special paper by a LaserJet printer. This paper is equipped with a unique dry glue along its sealing edges; when these edges are processed through a machine capable of sealing the paper, the form becomes a self-mailer. Payroll checks can be printed directly onto these check forms, eliminating the need for envelopes and envelope stuffing.
What are the types of pressure seal check forms?
The most commonly used types of these check forms are z-fold forms (also known as accordion forms) and c-fold forms (also known as a letter fold). Both of these forms are tri-fold styles and are available in both 11" letter and 14" legal sizes. C-fold checks of this type require two-sided imaging; one side of the form contains a section for invoice/payment, check number and payee information, a section for the check to be printed and a third section which may be either left blank or used to record any additional memo information. Address information is printed on the opposite side of the form. Z-fold checks, other other hand, only require one-sided imaging, with all check, payee and address information being printed on the same side.
What are the benefits of using pressure seal checks?
While using pressure sealing checks instead of traditional blank check stock and envelopes does require some initial investment to purchase sealing machines, the cost savings and environmental benefits far outweigh the cost in the end. By switching to pressure sealing check forms, businesses can:
- Eliminate the need for envelopes, cutting back on both the expense and environmental impact of purchasing additional paper products.
- Avoid the risk of placing the wrong checks or duplicate checks in envelopes. Each pressure seal check is self-contained!
- Avoid labor costs of stuffing checks into envelopes.
- Achieve faster payroll processing; pressure seal checks are printed, run through sealing machines and ready to mail instantly.
- Avoid the risk of mailing errors due to the address not being clearly visible through envelope windows.
- Improve check mailing security; pressure seal check edges offer a stronger, more secure seal than regular envelopes.
What are pressure sealing check forms?
Pressure sealing forms are documents - such as payroll checks and W2 forms - printed on special paper by a LaserJet printer. This paper is equipped with a unique dry glue along its sealing edges; when these edges are processed through a machine capable of sealing the paper, the form becomes a self-mailer. Payroll checks can be printed directly onto these check forms, eliminating the need for envelopes and envelope stuffing.
What are the types of pressure seal check forms?
The most commonly used types of these check forms are z-fold forms (also known as accordion forms) and c-fold forms (also known as a letter fold). Both of these forms are tri-fold styles and are available in both 11" letter and 14" legal sizes. C-fold checks of this type require two-sided imaging; one side of the form contains a section for invoice/payment, check number and payee information, a section for the check to be printed and a third section which may be either left blank or used to record any additional memo information. Address information is printed on the opposite side of the form. Z-fold checks, other other hand, only require one-sided imaging, with all check, payee and address information being printed on the same side.
What are the benefits of using pressure seal checks?
While using pressure sealing checks instead of traditional blank check stock and envelopes does require some initial investment to purchase sealing machines, the cost savings and environmental benefits far outweigh the cost in the end. By switching to pressure sealing check forms, businesses can:
- Eliminate the need for envelopes, cutting back on both the expense and environmental impact of purchasing additional paper products.
- Avoid the risk of placing the wrong checks or duplicate checks in envelopes. Each pressure seal check is self-contained!
- Avoid labor costs of stuffing checks into envelopes.
- Achieve faster payroll processing; pressure seal checks are printed, run through sealing machines and ready to mail instantly.
- Avoid the risk of mailing errors due to the address not being clearly visible through envelope windows.
- Improve check mailing security; pressure seal check edges offer a stronger, more secure seal than regular envelopes.
Helpful Ways to Enter Payroll Data
When your business started, you probably gave no second thought to entering payroll data for employees. That's probably because it was all so simple. But as your business grows, pay day entry becomes much more varied by employee, shift, job and pay types. Some employees are paid a salary, others are hourly, and still others are paid via piece work, and so on. Thankfully, good software programs have grown to accommodate the growing payroll needs of a business. By using a good program you can keep your payroll accurate and also save time on data entry. Here are some helpful pay data methods payroll software can offer.
Salaried and Hourly. Entering salaried and hourly pay is fairly basic, since most employees fall into one of these categories. Payroll systems typically come with pre-defined codes for these pay types, and you set up each employee with the code as needed. Some programs also allow you to change the standard codes to meet your needs.
Piecework. Businesses such as fruit growers and manufacturers often pay employees via piecework, and having a tool to handle those calculations can save significant time and improve accuracy. This not only helps your business, but keeps employees happy too.
Minimum Wage Calculations. If you have employees who are paid by piecework, you need to verify that you are paying them at least minimum wage. Minimum wage calculation is a tool that allows you to calculate what employees actually did, and then verify they are being paid minimum wage. This ensures that you comply with minimum wage laws.
Time Clock. Using a time clock allows you to pull in information from cards or electronically that the employees have entered and managers may have approved. Pulling in this information directly can save significant manual entry time and can also help avoid errors.
Time Entry Formats. You may want to have different methods of entering pay available, and multiple time formats give you this option. Using time formats, you can enter actual hours worked, or you can enter a start and stop time and let the software calculate the actually hours worked based on that.
Shift Differential. If you have employees who work different shifts at your business, you likely pay a differential, for instance, an added hourly pay amount depending on the shift. Some systems allow you to set up these shift differential pay amounts within the system, so that paying those employees the correct rate is as easy as choosing the correct amount from a list.
Copy Previous Pay Runs. Some systems save you the time of having to enter pay data each pay period by copying a previous pay run and using it as a starting point for a new pay run. This allows you to quickly select the same employees paid the previous week.
Using software tools can help streamline the payroll process and can also ensure data accuracy.
Salaried and Hourly. Entering salaried and hourly pay is fairly basic, since most employees fall into one of these categories. Payroll systems typically come with pre-defined codes for these pay types, and you set up each employee with the code as needed. Some programs also allow you to change the standard codes to meet your needs.
Piecework. Businesses such as fruit growers and manufacturers often pay employees via piecework, and having a tool to handle those calculations can save significant time and improve accuracy. This not only helps your business, but keeps employees happy too.
Minimum Wage Calculations. If you have employees who are paid by piecework, you need to verify that you are paying them at least minimum wage. Minimum wage calculation is a tool that allows you to calculate what employees actually did, and then verify they are being paid minimum wage. This ensures that you comply with minimum wage laws.
Time Clock. Using a time clock allows you to pull in information from cards or electronically that the employees have entered and managers may have approved. Pulling in this information directly can save significant manual entry time and can also help avoid errors.
Time Entry Formats. You may want to have different methods of entering pay available, and multiple time formats give you this option. Using time formats, you can enter actual hours worked, or you can enter a start and stop time and let the software calculate the actually hours worked based on that.
Shift Differential. If you have employees who work different shifts at your business, you likely pay a differential, for instance, an added hourly pay amount depending on the shift. Some systems allow you to set up these shift differential pay amounts within the system, so that paying those employees the correct rate is as easy as choosing the correct amount from a list.
Copy Previous Pay Runs. Some systems save you the time of having to enter pay data each pay period by copying a previous pay run and using it as a starting point for a new pay run. This allows you to quickly select the same employees paid the previous week.
Using software tools can help streamline the payroll process and can also ensure data accuracy.
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