Streamline your payroll process with online payroll services. Many providers offer HR services, including simplified onboarding and time tracking, e-signable legal documents, in-app messaging, free resources, and financial protection against tax penalties.
Small business owners work around the clock, and payroll is significant. Using a trusted service will save you time and headaches so that you can focus on more critical tasks.
Table of Contents
Taxes
The best online payroll services for small business accurately pay salaried and hourly workers while calculating deductions and reporting taxes.
They also file tax forms on your behalf and ensure compliance with state, federal, and local laws. A single source of truth eliminates the chance for duplicate or inaccurate data entry, and the process is streamlined.
Regardless of your business structure, it’s likely that you need to file various types of state and local taxes.
These include income and employment taxes, which vary by location. In addition, if your business is subject to specialty taxes (like local sales or excise), you need a service that can handle them.
Most online payroll services charge a base fee per month or period and a per-employee fee.
Automated Payroll
A small business’s most important task is ensuring employees are paid on time. This is why automated payroll tools are a must-have for small businesses.
Manually processing payroll requires a lot of time and effort, especially when there are a lot of different pay rates for hourly workers.
Automated payroll software makes the calculations for you, allowing for more accurate paychecks. This also reduces the risk of errors, which can lead to costly fines for violating labor, wage and hour, or tax laws.
An online payroll system with integrated HR management software will provide your business with a full range of services, including employee tracking and scheduling, workforce reporting, new-hire state reporting, and automatic payroll tax filing.
These systems will help you overcome the challenges of managing payroll while freeing up your time to focus on your business goals.
Many of these systems offer a monthly fee structure or per-payroll cost, with various additional features depending on your needs.
They may include employee portals for employees and employers, a mobile app for accessing the system on the go, and complete customer support.
Employee Documentation
When choosing an online payroll program, look for one that offers comprehensive services. This includes tracking and processing time off, a dedicated HR representative, and other features to help your company stay compliant.
These programs also offer the convenience of handling payroll processes through one centralized platform, saving valuable person-hours.
If you have any questions, many of these companies have stellar customer support teams available to assist you with any problems.
Most are open Monday through Friday, and some even have weekend hours. They can provide you with step-by-step instructions and guide you through the software.
When evaluating a payroll company, find out what other clients it has worked with in your industry. This will give you a good idea of whether it has experience handling the specific needs of your business.
In addition, ask about its mobile app features for both the admin and employee side. Users love that they can access their information anytime, anywhere.
One example of this is how easy it is for an employee to submit a request for time off from their mobile app.
Pay Stubs
Whether or not your business is legally required to give employees pay stubs is an essential part of the payroll process.
Payroll software handles this for you, making it much easier than relying on a jumble of spreadsheets and paper documents every pay period. A pay stub includes information about an employee’s wages for a specific period, including gross pay, taxes withheld, and other deductions.
It also lists the hours worked and distinguishes between regular, overtime, and double-time hours. The stub also notes any accrued sick time and vacation days and their balances.
You can give each employee access to an online portal where they can view digital pay stubs at any time.
This helps them verify income and can be used for many purposes, including applying for credit cards, securing lodging or rental housing, and more.
In addition to online pay stubs, payroll services can help your company produce W-2 and 1099 tax forms at the end of the year.
Many also offer a mistake-free guarantee that covers your taxes in the event of any errors.
Reporting
An excellent online payroll system will allow you to generate reports based on the information you send them, typically through email or an online portal.
It should also have top-tier security measures to protect the confidentiality of your employee’s personal information and business bank accounts.
Another thing that you should look for is how your provider handles compliance with government tax requirements.
For example, some systems update regularly and alert your key people when new requirements are issued so they can review and take appropriate action.
Aside from handling payroll calculations and taxes, a good online payroll service should also complete your related paperwork, including direct deposit and W-2 forms.
That way, you don’t have to worry about missing a deadline, which can result in angry employees and expensive fines from the IRS.
Some online payroll services charge a flat monthly fee, while others may charge you per pay period or a year-end tax form. It’s essential to determine what pricing structure works best for your company.
