FS#5: Finding a Payroll Service Provider
Finding a Payroll Service Provider
When you employ workers in your day care program, you take on many tax-related responsibilities, such as:
- Calculating the FICA and income taxes to withhold (subtract) from your staff’s wages, and filing the appropriate forms to report and pay the withholding.
- Setting aside your own money to pay unemployment taxes and your share of FICA taxes, and reporting how much you paid towards these taxes.
- Obtaining and paying for workers’ compensation and disability benefits insurance coverage.
Meeting these payroll responsibilities is time-consuming and complicated. If you do not have the time to carry out your payroll responsibilities, or you feel uncomfortable with doing so, you have other options:
1. Hire an accountant. Choose an accountant experienced with processing income tax withholding and other payroll tax payments. Try to find a Certified Public Accountant (CPA). Ask other small business owners to recommend an accountant they have worked with.
2. Use computer software for payroll processing. With a computer and access to the Internet, you can process your payroll responsibilities using a computer program like QuickBooks. These programs can calculate how much payroll taxes you have to pay to the IRS and NYS. Some programs will have the forms you need, or the forms can be downloaded from the Internet.
3. Hire a payroll service provider. This company will calculate and submit your tax payments, and should also submit your workers’ comp. and disability insurance premiums. The company also handles cutting the checks or direct deposits for wages you pay your employees.
You remain responsible for meeting your payroll requirements correctly and timely, even if you hire an accountant or payroll service. You can start your search for a payroll service provider with the list shown on this fact sheet. You can also find payroll service providers online at www.irs.gov.
DISCLAIMER: South Brooklyn Legal Services does not endorse or recommend any of the payroll providers listed here, and cannot refer you to any specific accountant or computer program for payroll processing.
SOME PAYROLL COMPANIES SERVING NEW YORK CITY:
ADP
Phone: 212-631-3033
Web: http://www.adp.com/solutions/employer-services/payroll/small-business-payroll.aspx
Advantage Pay
Phone: 516-835-1407
Web: http://www.advantagepayroll.com/home.asp
Employer Payment Solutions
Phone: 866-603-1352
Web: http://www.empaysolutions.com
Paychex
Phone: 718-246-2827
Web: http://services.paychex.com/
PrimePay Payroll
Phone: 212-896-3953 or 212-948-0727
Web: http://www.primepay.com
Below are some questions to guide you when considering any accountant, software, or payroll service provider:
- Can the company or software help you meet all of your payroll responsibilities, including new hire reporting with New York State, and calculating your premium payments for workers’ compensation and disability benefits coverage?
- Will the accountant or service provider help you obtain insurance coverage for workers’ compensation and disability benefits?
- Based on the number of employees you have and your payroll period, what are the costs to carry out regular payroll responsibilities?
- How much does the service cost? Which services does the cost include?
- How often will you be charged by the payroll service provider or accountant?
- If you arrange to have other day care providers, along with yourself, hire the accountant or payroll service company, can your group receive a discounted rate for the company’s services?
This article was posted March 10, 2010
