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Outsourcing payroll processing may help your company save money and time.

Your firm may be spending more time and resources than you realize by processing payroll in-house. Payroll entails more than signing and approving checks--such as recordkeeping and tax preparation that has the potential to be audited by the IRS.

While there are many options for payroll processing, one of the most cost- and time-efficient solutions may be right under your nose. Your bank may offer payroll processing.

Ask these questions to evaluate whether your bank's payroll processing option can streamline your company's management.

  • Does it provide direct deposit? If you offer direct deposit of paychecks, three out of four employees will use the service and of those, 97 percent will be very satisfied, says electronic payment association NACHA. Make sure that the bank's system allows employees to split paychecks into different accounts, such as a checking and a savings account. Of course, you should be able to offer employees printed or hand-written checks as well.
  • Does it integrate easily with your existing accounting system? You should be able to seamlessly download payroll information to your accounting software system.
  • Is it scalable? The system should make it easy to add employees as your firm grows.
  • What are the fees? Ask about any fees for software set-up or maintenance, as well as whether you'll pay a monthly fee.
  • Is customer support available? Make sure support is available when you need it, including after traditional business hours.
  • How is tax liability handled? The system should include a reminder that alerts you when payroll taxes are due. Some payroll processors impound payroll taxes, although you'll likely want to retain control of the timing of these payments.
  • Does the system include government reporting? Missing deadlines for submitting W-2 forms for employees and 1099-MISC forms for contractors can result in expensive fines.

Learn more about the variety of PNC payroll processing solutions.

 


The article you read was prepared for general information purposes by McMurry. These articles are for general information purposes only and are not intended to provide legal, tax, accounting or financial advice. PNC urges its customers to do independent research and to consult with financial and legal professionals before making any financial decisions.These articles may provide reference to Internet sites as a convenience to our readers. While PNC endeavors to provide resources that are reputable and safe, we cannot be held responsible for the information, products, or services obtained on such sites and will not be liable for any damages arising from your access to such sites. The content, accuracy, opinions expressed, and links provided by these resources are not investigated, verified, monitored or endorsed by PNC.