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Frequently Asked Questions: Payroll Service Buyers Guide

(10/29/2007)

TABLE OF CONTENTS:

  1. Introduction
  2. Advantages To A Small Business Using Outside Payroll Services
  3. Evaluating Payroll Service Companies
  4. Online Payroll Services
  5. Frequently Asked Questions (FAQs)
  6. Glossary of Terms

5.  FREQUENTLY ASKED QUESTIONS (FAQs)

What does “outsourcing”  payroll serices mean?   Using  a professional Payroll Service Compay to prepare  and service the payroll accounting for the business.

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What is Direct Deposit? An electronic format for depositing payroll funds from a business's bank directly into a employee’s or vendor;s  bank account automatically.

What are employer payroll taxes:  Thoses taxes an employer is responsible for relating to employee payroll.  These include workman's comp, employer's contribution to Social Security Taxes, employee deductions (Federal, State and Local).

What is the major advantage to outsourcing payroll services? The cost of outsourcing with a professional Outside Payroll Servicing Providor is generally less for the small business that in-house costs relating to preparing payroll.

Are there different programs and services offered by Outside Payroll Servicing Companies? Yes, a professional Payroll Servicing Company is capable of providing base payroll services.  In addition, they can offer various services such as managing retirment programs and 401(k) programs.  As your Outside Payroll Servicing Company what type of additional services they provide and fess associated with services.

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