Creating and setting up a payroll processing account is not hard. To set up a new account, payroll service companies generally follow the same procedures. Please note since payroll outsourcing companies make all payments for your business, prior to any payments being made, you will need to make sure they have access to the proper amount of funds. Your company would also need to give the basic information for the payroll company to compute amounts. In addition, you will need to provide employee W-4 forms, as well as salary and pay information. You might also need to share employee bank information when making the changes.
Payroll processing companies normally offer two options for payments. You can either set up an account with the payroll service and make deposits to the account each month before pay day, or the funds can be deducted from one of your accounts at your bank by allowing the payroll company to access and distribute funds. Under the first choice, you can either make deposits bi-weekly or monthly. You could also set up a direct deposit transfer from your business bank account. Keep in mind you should also keep funds in reserve to be sure you have enough money to pay employees (and for any other necessary payments).
The process of setting up a bank account is easy and quick. In order for a payroll company to perform a test transaction, you might need to deposit the reserve amount first. You can make the switch to the outsourced company after the account is up and running and all employee documentation has been obtained. The company you choose will instruct you on the easiest way to send in employee payroll. Even for salaried employees, hours worked (including sick or vacation pay) need to be verified.
You will also need to be aware of the process for updating employee information. Your payroll company needs to know immediately when new employees are hired, bonuses are paid or any other changes are made. Access to online payroll information is convenient for everyone.
As soon as your account is set up, make sure you know how you can input information to make the process easy on all.
Modern Business Associates is an HR company that focuses on payroll and HR outsourcing. We routinely work with clients on setting up payroll processing accounts. As a Professional Payroll and HR outsource organization, our clients rely on us to help them effectively deal with these kinds of topics.
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