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How Do Payroll Services Work?

Published by Payroll Service Solutions on November 20, 2024

As a business owner, it’s likely that you are managing multiple tasks at once. One of the most time-consuming tasks is managing payroll, which can take hours away from focusing on your business. Payroll Service Solutions is a one-stop professional solution for reliable payroll processing. With a focus on small to midsize businesses, we offer personalized services to meet your individual needs. Here’s a breakdown of how our payroll services work, making payday easy and worry-free.

Part 1: Get Setup with Payroll Service Solutions

Setting up payroll services with Payroll Service Solutions is quick and hassle-free, ensuring your business runs smoothly and stays compliant. The process begins with a consultation to understand your payroll needs, whether you have a small or large team. We’ll gather details about your employees, current payroll structure and benefits like health insurance or retirement plans. For businesses in Philadelphia, we ensure compliance with local wage taxes and earned income taxes by collecting the necessary city tax forms.

Once we have the details, we help you choose the best payroll schedule for your business, whether weekly, bi-weekly, semi-monthly, or monthly and set up accurate tax withholdings. We ensure accurate payroll calculations and avoid errors, especially with overtime. You’ll also gain access to an online dashboard that will store all the data relative to your business operations. Our team is available to provide ongoing support to help you feel confident managing payroll.

Part 2: How We Run Payroll

Once your payroll setup is complete, the next step is actually running payroll. Here’s how Payroll Service Solutions handles this process:

  1. Payroll Calculations: We calculate employee wages based on your chosen pay schedule, factoring in salaries, hourly rates, overtime, bonuses, and commissions. For Philadelphia businesses, we ensure the correct tax rates, including local wage tax and earned income tax (EIT), are applied. We also deduct benefits like health insurance and 401(k) contributions. 
  2. Tax Withholdings and Filings: Payroll Service Solutions ensures all tax withholdings are accurate, including federal, state, and local taxes (Social Security, Medicare, Unemployment). We stay up to date with tax law changes, handling quarterly and annual filings on your behalf to ensure timely payments and reduce the risk of audits or penalties.
  3. Paycheck Distribution: Once payroll is calculated and taxes are withheld, we distribute paychecks via direct deposit, payroll debit cards or live checks. Direct deposit automatically transfers pay to employees’ bank accounts, while debit cards offer a secure option for those without bank accounts. Live checks are an option for those who don’t participate in DDP or debit cards. These methods ensure timely and efficient payroll distribution.
  4. Employee Access and Reporting: After payroll is processed, employees can access pay stubs, tax forms (W-2s, 1099s), and personal info via the employee portal. This self-service system reduces HR inquiries. Employers also have real-time access to payroll reports, including tax filings and year-end summaries.
  5. Ongoing Support and Compliance:  Payroll is an ongoing process that requires attention to detail. Payroll Service Solutions provides continuous support to ensure smooth payroll operations, answering questions, resolving issues, and keeping your business compliant. We stay updated on federal, state, and local requirements, including Philadelphia-specific regulations. 

Conclusion: Simplify Your Payroll

Payroll Service Solutions is the go to for all your business payroll needs. We make the process easy from start to finish through open communication and taking the time to understand your business. Outsourcing payroll can provide many benefits to business owners, in managing your payroll we provide a worry-free experience. By trusting us with your payroll needs, you can alleviate the added stress. Let us help you manage your payroll today making it easy for both you and your employees. 

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