Payroll Services - BRB Business Solutions
Paying staff and adhering to tax regulations are crucial but time-consuming tasks for small business owners. As a result, the procedure gets overwhelming as your business expands. Payroll firms can manage benefits administration, pay employees and contractors, and manage payroll. In addition, they provide various payroll services, from basic to sophisticated, and function as an extension of your human resources (HR) division.
One of the services provided by BRB Business Solutions is payroll processing. Maintaining regular payroll and records can be time-consuming and labor-intensive, even for small businesses with few employees. That is why we help businesses structure and automate their payroll processes to be more efficient for employers and employees. Gathering employee data, setting up a timekeeping system, and administering the payment processing are all part of our payroll services. Even though the design is primarily automated, work in this area still entails authorizing and sending payroll, reporting and updating records, and collaborating with employees to resolve any concerns.
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What Exactly is Payroll?
Payroll is the salary an employer owes workers for a predetermined time or on a specific day. Typically, payrolls for small businesses can be managed directly by the owner or a colleague. But generally, the company’s accounting or human resources department is in charge. However, we recommend that you hire specialist companies that manage the processing of paychecks, employee benefits, insurance, and accounting duties, including tax withholding. In addition, numerous payroll companies are using technology to streamline payroll procedures. These solutions include payroll-related documentation in digital form and other cutting-edge technology-enabled services that work and outsourcing economies need. They also pay employees more quickly and conveniently.
The list of a company’s employees and the compensation due to each one can also be referred to as the payroll. For most firms, payroll is a significant expense that is usually always deductible, meaning that the cost can be subtracted from gross income to reduce taxable income. However, payroll might vary from one pay period to another due to overtime, sick pay, and other factors.
Responsibilities to Delegate to a Payroll Provider
A payroll provider can handle any or all of the several phases that make up the small business payroll process. First, employers determine the employee’s gross pay, make appropriate deductions or garnishments, and then send out paychecks. You will also need to follow federal and state requirements, such as the Family and Medical Leave Act (FMLA), depending on the size of your business.
Tracking and accounting for additional payroll processing duties include:
- Time and attendance of employees
- Sick time and paid time off (PTO)
- Payroll records, including hourly and salary
- Reporting of new hires
- Tax statements for payroll
- Employee compensation
- Submitting payroll taxes and tax papers
- Year-end taxes on a federal, state, and local level, as well as W2s
- Social Security and state unemployment insurance contributions
- Benefits and deductions for employees
Your workforce might also desire a direct deposit option and an online self-service portal for electronic payroll records and pay stub access. Payroll services for small enterprises can manage fundamental payroll processes and provide cutting-edge features like reporting on new hires.
Advantages of Hiring Payroll Services
Payroll outsourcing can assist small business owners in adhering to federal and state tax regulations, saving time, and cutting costs.
The top payroll services offer the following advantages for small businesses:
Enhance the Employee Experience
Employees experience convenience when they are provided functions such as electronic payroll records, direct deposit, digital W2s, employee self-service portals, and easy ways to update personal information.
Full-service payroll services could be less expensive than engaging an accountant or a professional employment organization (PEO). In addition, numerous payroll services offer guarantees and will cover any costs you incur due to inaccuracy.
Whether you have five or 100 employees, flexible payroll solutions allow employers to add or remove various functions, making verifying compliance and tracking payroll tax payments simple.
Accounting software integrations and time-tracking apps offer insights into the administration of benefits, payroll taxes, and employee usage of payroll and HR functions.
How a Payroll System is Set Up
By calculating deductions, gross pay, and net pay automatically, payroll companies provide a seamless solution. In addition, all required paperwork is conveniently located in one location for easy access by all personnel. When setting up your company’s payroll system, you must contact the provider of the services you’re considering. Next, work with a salesperson to find the best strategy for your business.
A few phases involve setting up a payroll system, including gathering payroll paperwork, selecting a payment schedule, deciding how to pay employees, and figuring out withholdings.
1. Gather Payroll Documents
Your employees must complete the necessary paperwork during onboarding once you’ve chosen your payroll provider. Some payroll forms you ought to be familiar with are listed below:
- W9: Contractors utilize the W-9 form to supply their tax ID numbers.
- W-2: The information on Form W-2 shows how much you paid your employees and how much tax was deducted from their pay over the previous year.
- W-3: All of your W-2 information is compiled on this form.
- W-4: W-4s specify how much of each employee’s taxes will be deducted from their pay.
- 1099: This form details payment made to independent contractors or other non-employees.
- 1096: This 1096 form compiles data from all of your 1099s.
- 940: Your Federal Unemployment Tax Act taxes are reported on Form 940.
- 941: Form 941 details employee wages and payroll taxes.
- 944: Federal income and FICA taxes are reported on Form 944 annually. For those companies, Form 941 is no longer necessary.
- 1095-B: Employers who offer their staff members self-insured health plans must complete Form 1095-B.
- 1094-B: This 1094-B form compiles data from each of your 1095-Bs.
2. Select a Payment Schedule
When selecting a payroll schedule, decide on the best payment schedule for your organization and employees. The most frequent schedule is the most expensive and involved, burdening accountants and affecting benefit premiums. On the other hand, most employees prefer getting paid more regularly. Standard payroll intervals include monthly, semimonthly, bimonthly, and weekly. When creating your payment calendar, you’ll need to account for annual tax filing deadlines, holidays, and quarterly tax dates. Consider the number of hourly employees at your company when determining how regularly to run payroll. Payroll frequency is also governed by federal and state legislation, so you should research the rules in your region.
3. Decide How to Pay Your Staff Members
You must also choose how you will compensate your personnel. Paper checks, direct deposits, and credit cards are all acceptable forms of payment. Therefore, the more payment choices you have, the more expensive payroll will be. Ask your staff which mode of payment they would prefer for their paychecks. For example, although 93% of workers choose direct deposit, not all workers may have a bank account, which is necessary for this approach.
4. Determine the Payroll Deductions
You must compute payroll withholdings to ensure you’re taking the appropriate amount of taxes out of employees’ paychecks each pay period to avoid problems with the IRS. Several taxes, including state and federal taxes, must be subtracted. State tax implications differ, but you might anticipate making the following contributions:
- Government fees
- Social Security deductions
- Local fees
- Regional fees
- 401(k) contributions
- Compensation for workers
Frequently Asked Questions
How Does Payroll Work?
The practice of paying your employees for the work they do is known as payroll. It entails determining their compensation, deducting taxes and employee benefit fees, and sending payment—typically via direct deposit—to them. Both small and large organizations can automate these tasks with payroll processing software.
Is Payroll Accounting or HR?
Payroll is occasionally a stand-alone department directly accountable to the CEO, sometimes a division of HR or Finance, and occasionally both.
Who Should Process Payroll?
You want people in accounting to handle the accounting, people in finance to manage the finance, and people in human resources to handle the HR. This strongly implies that while most of the input data for payroll processing should originate from human resources and worker timekeeping, the function should be housed in finance.
BRB Business Solutions Offers Payroll Services You Can Rely On
The best payroll system for small businesses is one that frees up owners’ time to concentrate on increasing their profit margins by reducing the administrative burden of paying employees and submitting taxes. In addition, services that include regulatory monitoring and compliance help offer additional assurance. Small business payroll systems from BRB Business Solutions are quick, simple to use, and backed by knowledgeable assistance. The fact that BRB Business Solutions offers reasonably priced payroll choices with lots of flexibility to support expansion makes us the perfect choice for small enterprises. Employers can quickly sign up for the services they require today and later add extras, such as timekeeping and benefits.
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BRB Business Solutions
212 Quail Hollow Rd
Savannah GA 31419