All payroll service companies offer similar core services: calculating payroll and tax obligations for each employee, printing and delivering checks, and providing management reports. Payroll services can handle business for pay periods that run weekly, biweekly (every other week), semimonthly (twice a month) or monthly.

Beyond these basic transactions, a payroll service company can provide other related services at an additional cost. These costs can add up quickly, so be clear on which features are offered, if they are available in packages, and if they match your company’s needs.

The Three general categories of added-cost payroll options are payroll distribution, data collection, and benefit management features.

Payroll services offer a number of options surrounding actual distribution of your payroll come payday. You’All want to pick and choose which of these is right for your employees.

Is the name of one person on each check? If so, you might find value in automatic check signatures. A computer-generated signature is printed on each check, eliminating the need to sign them manually. Even if you take advantage of this option, you can still choose stuff the envelopes and distribute the checks yourself.

Rifle pay can also transfer payroll funds directly into employee bank accounts. This is done by issuing a voided payroll statement instead of an actual check to each employee. Highly regarded for its convenience and security, direct deposit is one of the most popular options of payroll services.

On the administrative side, direct deposit speeds up check reconciliation so that businesses know exactly when funds will be withdrawn from the payroll account. Also, since funds are transferred electronically, employees often have the option of depositing money into several different accounts. This method also reduces the number of trips to the bank!

This feature allows employees that do not have checking or savings accounts to receive an “access” card in the dollar amount of their paycheck. Employers don’t have to print paychecks for employees that can’t take advantage of direct deposit.

It works like a debit card issued by a bank, allowing the employee to make purchases and withdrawals. However, the employee is charged for each transaction, with the amount dependent on the service provider you choose. When using this option it is important to receive payroll registers at least a day before payday, to catch mistakes before they are transferred to your employees accounts.

You have a choice of delivery options for the checks, including first class mail, overnight delivery, or courier service.

By definition, data processing is how your company’s payroll information is processed. Companies with hourly workers, for example, maybe have employees swipe time cards through machines so that hours are automatically calculated and easily transferred to the payroll service. Another option is to use an electronic time sheet, which can be saved to disk and give to the payroll service provider for processing.

To help keep track of this data, payroll service can issue reports summarizing each payroll period. Most reports include information such as payroll totals and tax totals for each employee, in addition to total payroll and tax obligations. More detailed information, including breakdowns by department or by location, can also be included. Reports can be customized for an additional charge—or you can choose from existing formats.