What Are the Options for Processing Payroll?
Question: What Are the Options for Processing Payroll?
You can see that payroll is complicated and time-consuming. And you have considered the factors in making a decision. Next, review the options:
Answer:
Option 1: Do It Yourself, Using Payroll Software
If you have only a few employees and you have someone you trust who understands payroll, you can do it yourself. Most accounting software programs can link to online payroll software that will keep you updated on changes in withholding, tax rates, and due dates.
The person you choose will need to keep current on tax changes or this person can use a service connected to your accounting software to calculate payroll and make payments.
Option 2: Use an Outside Payroll Service
There are many payroll services you can use; some of them allow you to process payroll online, and they have different rates depending on the number of employees you are processing and the number of payrolls you run a year. The advantage to these services are:
Option 3: Use a Local Bookkeeper
You should be able to find a local bookkeeper who can do your payroll for you. This person might work for your CPA or you can ask your CPA for a reference. Many bookkeepers use accounting software like QuickBooks to prepare your payroll, create payroll reports, and make payments.
The advantage of a local person is convenience, but make sure there is someone who can step in if the bookkeeper is ill or on vacation.
You can see that payroll is complicated and time-consuming. And you have considered the factors in making a decision. Next, review the options:
Answer:
Option 1: Do It Yourself, Using Payroll Software
If you have only a few employees and you have someone you trust who understands payroll, you can do it yourself. Most accounting software programs can link to online payroll software that will keep you updated on changes in withholding, tax rates, and due dates.
The person you choose will need to keep current on tax changes or this person can use a service connected to your accounting software to calculate payroll and make payments.
Option 2: Use an Outside Payroll Service
There are many payroll services you can use; some of them allow you to process payroll online, and they have different rates depending on the number of employees you are processing and the number of payrolls you run a year. The advantage to these services are:
- They provide you with the most up-to-date tax rates and payment options
- You can print off forms and make payments yourself, or you can have the forms and payments sent electronically through the IRS electronic payment system (EFTPS).
Option 3: Use a Local Bookkeeper
You should be able to find a local bookkeeper who can do your payroll for you. This person might work for your CPA or you can ask your CPA for a reference. Many bookkeepers use accounting software like QuickBooks to prepare your payroll, create payroll reports, and make payments.
The advantage of a local person is convenience, but make sure there is someone who can step in if the bookkeeper is ill or on vacation.
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