A cloud-based payroll service can greatly reduce your costs by helping you avoid unnecessary penalties by staying in front of ever-changing regulatory requirements.
Payroll Reporting is one of the major benefits of an automated payroll process. Automated reports can quickly provide analysis of the data and organize the information into required formats meeting government regulations.
As the National Payroll Reporting Consortium (NPRC) states “Federal, state and local agencies have developed a wide variety of reporting rules, formats and media over time. This diversity alone poses significant challenges for the Industry. Here are a few examples:
- Mandatory use of specific reporting media, such as electronic filing or payments, may apply to either payroll service organizations, or to large employers.
- Some states ask that particular technologies be employed, which may have been designed for individual employers, or are otherwise inappropriate for bulk filings.
- The Industry has difficulties with unique client authorization requirements, such as state-specific Powers of Attorney, notarization, or additional registration requirements such as supplemental authorization forms to report using an electronic technology.”
Payroll reports keep track of wages and the different types of withholding activity. Withholdings will include cumulative employee and employer taxes for easy forwarding to local and federal tax agencies. This includes national security programs like Social Security, Medicare, etc. Payroll Reports will also help manage other types of withholding, such as voluntary contributions to retirement programs, payroll deductions associated with garnishments, and premiums withheld to pay for healthcare insurance.
The payroll service market has been growing as many businesses have chosen to implement an online payroll service. Using a cloud-based payroll service will help you manage your business in ways beyond accounting and tax reporting. An example is the ability to have Employee Self Service (ESS). Your employees will experience more flexibility and your Human Resources department will reduce internal costs.
In house payroll can be exposing the business to penalties and fees resulting from inefficient reporting. Contact Payroll Unlimited at 201-703-1313 to further discuss the ease of transition to an online payroll service.