Payroll service solutions can save you time and money--not to mention a few headaches. With their resources and expertise, it's a smart business decision to let an outside, professional firm manage payroll service. They can ensure you pay your employees correctly, punctually, and securely. In fact, California CPAs recommend using a professional payroll service to manage your employees' payroll for a couple of reasons.
1. Penalties for Mistakes
It is much more costly to be penalized by the IRS for payroll mistakes than to pay a payroll service provider. In fact, the IRS penalizes roughly 1 out of every 3 business owners for payroll errors. Doing it yourself might mean accidentally classifying employees and contractors incorrectly, or making deadly payroll mistakes that could put your business at risk.
2. Cost Management
Outsourcing payroll service solutions is also much cheaper in many cases than to employ and retain day-to-day in-house payroll staff for your business. Since most payroll service solutions firms operate at a high volume, they are able to charge much less for their services than an independent contractor or a staffed employee would.
Outsourcing payroll tasks frees up management to focus on the core business. Yes, payroll is extremely important but it's a necessity best left to those that make that their business as opposed to using your limited time and resources on something that doesn't grow or enhance your own business. Payroll service staff have experience and expertise making payroll service solutions faster and more convenient for everyone.
It's important to ensure accurate record keeping and outside payroll service solutions are well-versed in the changing tax legislation and obligations that are associated with payroll. Business owners need to make sure they are following their local state laws when it comes to hiring and reporting wages for different types of employees, or making sure they manage vacations, overtime, and commissions correctly.
Of course, there are many different types of payroll service solutions out there and it's important to find the one that best suits your needs. Business owners with at least 50 employees with high-frequency pay periods, such as those in restaurants, hospitality or professional services looking to save on overhead costs in 2013 would do good to look into payroll service solutions that provide a comprehensive suite of products and services such as tax, HR support, accounting and time labor management, and pay-as-you-go workers' comp insurance like PAYDAY Workforce solutions.
You didn't go into business for yourself because you love doing payroll! You're in business because you love what you do and have something special to offer. If you’re doing payroll yourself, you might be classifying employees and contractors incorrectly, or making serious payroll mistakes. This is particularly true for businesses with frequent pay periods, such as the restaurant and hospitality industries. Using a payroll service solution like PAYDAY Workforce Solutions will ensure accurate record keeping.
Making payroll errors can add up to thousands of dollars in lost revenue, as well as leave your company vulnerable to liability issues. According to the American Payroll Association (APA), wage and hour audits are on the rise, as are lawsuits of that nature. That’s why so many CPAs recommend hiring an outside professional payroll services firm like PAYDAY Workforce Solutions. In fact, APA notes on their website that “outsourcing has been and continues to be a common trend.”
Here’s a look at the top three ways a payroll services firm, such as PAYDAY Workforce Solutions, can help you reduce costs and improve your business.
1. Payroll Accuracy:
Payroll service providers have the technical expertise to accurately and consistently provide payroll in a timely manner. It’s their job to stay on top of ever-changing tax laws at the federal, state, and local level.
Do you know the difference between the federal tax tables that were in effect on December 31, 2012 versus those in effect on January 3, 2013?
A professional payroll services firm like PAYDAY Workforce Solutions can help you with the changes in Notice 1036.
2. Payroll Cost:
Saving money is often cited as one of the most important reasons why business owners contract out payroll services. It’s one of those behind-the-scenes tasks that can be outsourced to full-time professionals for only a fraction of the cost without impacting operations.
Business owners with less than 50 employees often find that outsourcing payroll operations to firms like PAYDAY Workforce Solutions actually costs less than maintaining full-time payroll staff.Do the math for yourself.
Add up the hours your company spends on payroll and related activities. How much time do you spend learning about taxes and changes to tax laws? How much money do you spend on things like signing checks and putting them in envelopes? Once you compare your costs to that of payroll service provider, such as PAYDAY Workforce Solutions, you may be pleasantly surprised to learn how much you can save!
3. Payroll Productivity:
Payroll costs aren't just financial. There’s also the piece of mind factor. Outsourcing your payroll to a firm like PAYDAY Workforce Solutions means you don't have to spend on time-consuming activities and complicated tax issues. Time spent not worrying about payroll issues is time you can spend focusing on growing your business! That’s a win-win for both you AND your customers.
There was a lot of attention earlier this year when Congress made what was referred to by the press as a "fiscal cliff" deal. The deal included important tax changes which affect payroll deductions and increase the need for employers to use a payroll service solutions company.
Some of these changes have specific implications for business owners who are required to withhold funds from their payroll. Payroll service solutions
can easily implement these changes for employers.
Some changes affect all workers. Others will only affect single people who earn over $400,000 or couples who earn more than $450,000. Here are the major changes in the law that everyone should be concerned with, particularly employers who will need to adjust their payroll withholding criteria. Payroll service solutions can help employers implement the new payroll withholding requirements.
Payroll service solutions company can aid employers
This increase can mean as much as $80 less that an employee will now be taking home on a monthly basis. A worker earning $50,000 will see their taxes increase by about $1,000 annually based on this change alone. Employers continue to pay 6.2 percent, the same they have paid for the last few years.
The change means that employers and employees each pay a maximum of $7,049.40. Payroll service solutions will automatically effectuate this change to employer's withholding requirements. The increase on the amount to be withheld may be as much as $2,425.20.
Employers must begin this payroll withholding by Feb. 15, 2013. Employers who use a payroll service solutions company will have the new calculations automatically prepared for them.
For single employees who annually earn more than $400,000 and married employees who earn over $450,000 a year, the tax rate has increased from 35 percent to 39.6 percent. All workers, but particularly workers in these income levels, should review their W-4 withholding form and consider revising it in order to avoid a large tax bill at the end of the year.
If you, as an employer, do not already use a payroll service solutions company, you should consider doing so. A payroll service solutions company like PAYDAY Workforce Solutions will ensure accurate application of the new payroll withholding tax laws and will provide you with accurate records. This relieves you of spending time studying new tax laws and simply hoping you interpret them correctly.
The work opportunity tax credit (wotc) provides benefits to business owners who hire individuals of a target group, including qualified u.s. veterans and those receiving temporary assistance to needy families (tanf). the wotc program provides a federal income tax credit against the wages paid to eligible target groups. the credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations, but the amount of the credit will depend on a number of factors, including the length of the veteran's unemployment before hire, the number of hours the veteran works, the hire date of the veteran, and the veteran's first-year wages. please see this link for more details: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Expanded-Work-Opportunity-Tax-Credit-Available-for-Hiring-Qualified-Veterans
PAYDAY Workforce Solutions (PAYDAY) today announced the launch of a major corporate rebranding initiative which includes the unveiling of a sophisticated new brand identity and the availability of a revamped website with a fresh look, feel, navigation, and content.
The announcement follows the company’s recent expansion of its service portfolio to include additional personnel management and benefits administration tools, and broader support of clients across dozens of different industries and throughout all of Southern California. The comprehensive rebranding effort, spearheaded by PAYDAY Founder and President Brad Campbell, marks the official commencement of an integrated marketing campaign that seeks to dramatically increase awareness of the company and its offerings among small and mid-sized business (SMB) owners.
“This corporate rebranding initiative gives us a more polished, sophisticated image; clearer and more well-defined positioning among business owners, and a stronger branded foundation on which to build current and future integrated marketing programs,” said Campbell. “As PAYDAY continues to mature, and as it accelerates its client acquisition activities, our new visual identity, supporting marketing programs, and broadened communications channels will play important roles in our ability to connect with and engage business owners.”
New Brand Identity: A Stylish & Eye-Catching Visual Presence
Developed in conjunction with Michelle Titta-Bogott of MacType & Design, a Yorba Linda, Calif.-based visual design and branding agency, the new PAYDAY corporate brand identity features a stylized version of the company’s name in interstate font, with the word “Pay” outlined in navy blue, and “Day” highlighted in orange. Each word features gradient shading, with lighter coloring at the top. The remaining part of the brand, “Workforce Solutions,” is rendered in battleship gray in all caps, and situated directly underneath the company name. A large, blue-and-white globe icon, which symbolizes the company’s ongoing growth, development, and geographic expansion, sits immediately to the left of the brand name.
Totally Redesigned Corporate Website
PAYDAY has also completely redesigned its corporate website. This was a major element of the rebranding effort and included the support of inbound marketing agency
Kinoshita Communications LLC. The revamped site, rendered in the same easy-to-read font and striking blue, orange, and battleship gray tones as the visual identity, features an entirely new look and feel, along with a cleanly-designed and updated navigation bar, fresh visual and text-based content, and numerous contact mechanisms. In addition to seeing extensive background on the company, its executive team, and its clients, site visitors can also review information on the company’s services in the Smart Solutions section, and read compelling commentaries on payroll processing, tax compliance, and workers’ compensation insurance on the brand-new payroll service blog at the company's website. The company will be adding training videos and updated materials for current clients in the coming months.
About PAYDAY Workforce Solutions
Founded in 1996, and based in Orange, Calif., PAYDAY Workforce Solutions is an innovative provider of payroll processing
capabilities, human resources support services, and time management and employee attendance systems to Southern California businesses operating in a diverse range of industries and market segments. With deep expertise in the management of human capital, employee benefits, and state and federal employment regulations, PAYDAY Workforce Solutions combines practical experience with today’s latest technologies to help companies navigate the complex, and often confusing, legislative maze of employment and labor issues to become more streamlined and efficient.
Workers’ compensation is insurance that provides wage replacement and medical benefits to employees who are injured while they are employed. It covers medical and rehabilitation costs and a portion of wages for employees injured on the job.
In California, workers' compensation insurance is mandatory for any employer, even if you have just one employee. Workers' comp insurance for self-employed, solo owners is generally optional, but consult an attorney or contact one of our insurance reps at PAYDAY regarding the specifics of your situation.
Pay-as-you-go workers' comp is a very valuable service because it means employers don't have to outlay a large sum of money all at once. By having PAYDAY manage your workmans' comp program, you won't have to worry about the administration, completing paperwork, or managing the numerous details associated with this aspect of your business.
Pay-As-You-Go Workers' Comp Insurance
Payday Workforce Solution’s offers a competitive Pay-As-You-Go workers' comp plan
that helps make workers' compensation more affordable. We calculate premiums using your actual (not estimated) payroll information. Payments are made automatically using the correct premiums for each pay period. That saves you money and lets you put your working capital to better use.
With pay-as-you-go workers' comp, you have the option of going direct through an insurance company, or using a third-party service provider, such as PAYDAY. If you work with a payroll service provider you get the benefit of having the company -- not you -- report the payroll wages automatically ever payroll. Then, the insurance company will automatically deduct the premium from your account, which will be a percentage of your total payroll. This is the primary reason why many companies are choosing to go with pay-as-you-go workers' comp plans. It saves money for companies by paying only the correct premiums each pay period and reduces the amount of outlay for this state-mandated insurance.
For more information, contact a PAYDAY workers' comp specialist today. Let us know how we can help you
or call us at our office in Orange, California
. We look forward to having one of our expert payroll service specialists work with you.
A Time and Attendance Policies provide company-wide attendance standards and sets the appropriate procedures that all employees must follow. It also defines the policy that managers must follow when addressing attendance concerns with the company’s employees.
Your policy will defines both scheduled and unscheduled absences. It will also explain how your business defines paid time off (PTO), vacation and sick day usage, and any potential issues that may create the need for an employee to be away from the workplace.
However, recognize that no company can attempt to address every possible scenario that could arise in their Time and Attendance policy. That would lead to a policy that would be too lengthy and could lead to misinterpretations. It could also be too restrictive, as management should have sufficient autonomy to address some issues on a case-by-case basis.
When developing your Time and Attendance Policy, also keep in mind that you will need to consider the following topics and how they will affect your business. Discuss the following issues with your attorney before you begin drafting your policy. These issues include, but are not limited to:
Family Medical Leave Act (FMLA)
- Americans with Disabilities Act (ADA)
- Absences mandated by a court’s summons, subpoena, or other legal order
- Federal and state laws relating to breaks, lunch periods
- Federal and state laws relating to rounding of time
- Any other consideration as directed by federal or state law
Enforcing Your Time and Attendance Policy
Once you have structured your time and attendance policy, you will need to apply it fairly and consistently throughout your organization. Your company will need to enforce the policy so that every employee will know exactly what is expected of them. There must be no exceptions to the policy, not even among your most senior management team.
Ensure that you are monitoring employee time and attendance accurately and effectively with automated time tracking systems. There are many possible solutions to monitoring your time and labor, and PAYDAY Workforce Solutions offers many choices to choose from. Common solutions include time clocks, badge terminals and telepunch. When selecting your time and labor management system, consider whether your employees will need to clock in from their PC terminals or while on the road. PAYDAY offers Web-based time tracking systems, as well as time systems that are mobile enabled with GPS functionality for employees who are on the road. Since the payroll department will pay each employee for their accumulated hours in accordance with the payroll policies, errors of just a few minutes per day can lead to several thousand dollars in extra payments for your company. Contact us to discuss your needs.
Time clock software is an important piece of your payroll service solution. It tracks the number of hours your employees work and can even prevent other employees from punching-in or punching-out on behalf of other employees.
Since the payroll department will pay each employee for their accumulated hours in accordance with the payroll policies, errors of just a few minutes per day can lead to several thousand dollars in extra payments for your company.
Time Clock Software
A major advantage to using time clock software is that it reduce costs to your business by ensuring employees are only paid for time actually worked. Once integrated into the payroll service process, time clock software systems can significantly reduce the amount of time required for your administrative staff to track, record and monitor employee time and payments.
Time clock systems can also alert management teams to potential employee attendance issues before they become major problems. Before selecting and installing your time clock system, make sure you have a well-planned time and attendance policy in place so that corrective measures can be taken if problems are discovered.
Some popular options of time clock software and attendance solutions that a company can deploy include:
You may use any of these time clock software solutions independently or collectively as a part of your time and attendance policy enforcement measures.
Time Clock Software Solutions
To learn more about time clock systems and which option might be the best for your company, contact our team today. All of PAYDAY’s Time Labor Management solutions integrate to payroll with ease, creating increased accuracy, time savings and a quicker return on investment. Payroll Integration includes both Web Access and Remote Access. Plus, we have been providing complete human capital management solutions since 1996. Let us help you choose the best time and labor management system for your business
Workers' comp insurance is based on the total amount of wages on an employers' payroll, the job environments in which employees work, and claims history. A smaller payroll size and less hazardous job environments will result in lower premiums, and more hazardous jobs will result in higher premiums.
Choosing PAYDAY for your pay-as-you-go workers' comp insurance can help keep your workers' comp costs low, because your premiums will be based on actual employee wages, not estimates.
In calculating your pay-as-you-go workers' comp insurance, the three main factors are still considered:
Determining the risk factor of each employee -- the odds that one of your employees will get injured while working -- is a difficult task. It falls to The National Council on Compensation Insurance (NCCI), a neutral body that assigns job classifications to workers' compensation insurance companies. The safer the workplace is, the less a business may have to spend on workers' comp insurance, which is why many organizations employ a Safety Officer.
In addition to the work environment a company's actual claims history will greatly affect the cost of workers' comp insurance.
Claims history is expressed as a modifier, with 1.0 representing a company that has an average claims history compared to its peers. An experience modification higher than 1.0 means that a company's claims history is higher than average, and that will result in higher workers' comp premiums. With an effective safety program in place an organization can lower their workers' comp modifier to less than 1.0. That would result in a business paying lower workers' comp premiums.
The formula below shows how your workers' comp insurance will be calculated:
Payroll (per $100) X Classification Rate X Experience Modifier = Premium
Let's look at an example. Let's say an administrative assistant is earning $673 per week and her classification rate (risk factor) is 0.85 as an example. With an average experience modifier (1.0) the calculation would be:
$6.73 X 0.85 X 1.0 = $5.72
Similarly, if the claims history of the business was less than average, and had an experience modifier of 0.5, that would result in a lower premium of just $2.86.
Each year, the insurance company will adjust the workers' comp modifier based on the past three years. Organizations with high safety records will have lower premiums. Therefore, try to manage your safety program so that your past three years have the fewest claims as possible. This can be done through the implementation of a safety program.
For many companies, pay-as-you-go workers' comp is a better choice than traditional workers' comp insurance program. That's because a pay-as-you-go program offers two important benefits.
First, pay-as-you-go is easier to manage because deductions are automatically tied into your existing payroll. There's no extra paperwork to fill out or insurance companies to deal with. Second, you do not have to put up a large cash deposit to cover any possible claims. This allows you to free up much-needed capital to help you run your business.
To find out if pay-as-you-go workers' comp insurance is right for you, contact a payroll specialist. We will provide you with complete program details and a cost analysis, based on your actual payroll size and classification rates.
Did you know that as of August 2007 under California law AB1825 any employer that is in any business or enterprise in California, who employs 50 or more full-time, part-time or temporary employees must provide its supervisors with at least two hours of sexual harassment training courses every two years?
It doesn't matter if a company's 50+ employees do not work in the same location or even work from home. As long as a company or enterprise that is established in California has 50 or more employees, all of its "supervisors" must complete the minimum two-hours required by the state. Even though some companies hire contractors that work for the company in-house or sometimes even outside of the state, if the company is located in CA all of its employees who are "supervisors" must complete the two-hour mandatory sexual harassment course under CA law - FEHC AB 1825.
You're probably thinking who is considered a "supervisor"? According to California Fair Employment and Housing Act's (FEHA) definition, one is considered a supervisor if he or she has the authority to “hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or who has the responsibility to direct employees, adjust their grievances, or effectively recommend that action” (Training Today). Supervisors must be given the training course within 6 months of being hired and every 2 years thereafter. Because many employers are not sure of the exact definition of a "supervisor", many of them have provide anti harassment training course for all of their employees, or at least a great majority of them.
The training must include information in regards to federal and state provisions on the subject of prohibition against and the prevention of sexual harassment, as well as remedies available for persons that encounter sexual harassment. Most training courses give examples of ways to avoid sexual harassment while at work, ask questions to assess supervisor's application and understanding of the content, and provide supervisors with numerous hypothetical scenarios that involve sexual harassment in one way or another.
Most large companies offer the sexual harassment training course to their employees or supervisors through a portal which they use to communicate with. However, some companies offer a web-based training course to their supervisors. Still others conduct the training with an interactive format in a classroom setting. Often these courses are provided by a third party. According to California (CA) law, the company itself does not have to come up with the information that is needed in the training course, and therefore a third-party training courses which meet CA law, can be utilized.
Here is an opportunity for you to learn more about AB 1825 as an employer and also as a supervisor:
In August, the California Restaurant Association (CRA) is sponsoring the Western Foodservice & Hospitality Expo, which will be held at the Anaheim Convention Center. As part of the Expo, the CRA is offering a FREE, 2-hour session that meets the requirements of California’s AB1825. AB1825 requires all companies employing 50 or more people to train supervisors on preventing harassment, discrimination and retaliation. The free training is only offered to members of the CRA, and space is limited.
If you are interested in becoming a member of the CRA, please take the time to visit the California Restaurant Association website.
If you are already a member and would like to register for the event, would like to contact the CRA for more event details, or if you have any questions in regards to the CRA and other events that are being held in the future,
DO YOU THINK all states should require supervisors (and maybe all employees) to take this course every two years? Why or why not?
“Workers’ compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence”. Workers’ comp is state mandated in order to sustain occupational injuries or illnesses.
Have any of your employees or colleagues ever gotten hurt or injured at work due to job-related duties? If you’re like many of our clients, you’ve probably spent a lot of time, effort, and money to prevent this from happening yet no one can predict the future. You never know if someone will end up slipping in the bathroom and breaking something or simply has a deep paper cut while filing papers. Thus, it’s always a good idea to make sure you know what to do if and when one of your employees gets hurt or injured while on the clock.
Pay-as-you-go workers comp is a very valuable service to many companies because you don’t have to spend time dealing with the administration, completing paperwork, and especially spending numerous hours dealing with insurance companies.
Have you ever considered working with a qualified payroll and HR specialist that has the hands-on experience when it comes to dealing with insurance companies on your behalf?
According to the Small Business Administration (SBA), if something does happen to your employees, workers’ compensation usually covers medical and rehabilitation costs and low wages for employees injured on the job.
You have the option of going through an insurance company, such as Zenith, or using a third-party service provider. A payroll service provider will get in touch with your insurance company and report directly to them on your behalf. As a result, you can let your payroll service provider hassle with potential problems that may arise.
Another major reason why it makes sense to work with a payroll service provider is that you, as a company, are not required to pay a percentage of your total payroll as a deposit. And worse off, this deposit may be used in the case of a claim from an employee. And worse still is that if no claims are made the deposit is still accrued to your company.
Payday Workforce Solution’s custom Pay-As-You-Go System makes workers' compensation effortless by calculating premiums using actual (not estimated) payroll information. You can therefore use your capital for more important things, and furthermore, payments are automatically made using the correct premiums for each pay period.
For more information on PAYDAY’s Pay-As-You-Go System for workers’ compensation services, simply complete a Proposal Request and a PAYDAY representative will contact you.