Today small businesses need to utilize every possible dollar and turn every business activity into an income generating action if at all possible. Unfortunately, payroll processing is not an income generating activity, so small business owners are better served by allowing an electronic payroll processing company like Priority Pay Payroll take this burden from their shoulders and allow them to return to what they do best: building their business and making it grow.
Workers Compensation and Cash Flow
For small employers, workers compensation insurance is a requirement by law. Unfortunately, most workers compensation insurance companies require large upfront deposits that are based on estimated annual payroll amounts and at the end of the year, if those estimates were low for the previous year, not only will a payment to make up the premium difference be required, but a larger premium for the coming year will be due. This makes it extremely difficult for small businesses to manage their cash flow and have an accurate and reasonable assessment of their actual workers compensation insurance costs.
Priority Pay Payroll offers EasyChoice workers compensation insurance that takes an entirely different approach when it comes to premium payments. Instead of a huge down payment upfront premium, EasyChoice allows premiums to be paid with each pay cycle. As pay period totals are calculated, workers comp payments are calculated based on the pay cycle and the premium amount is deducted from the customer’s account. By using EasyChoice, small employers are able to better control their cash flow across the year and have a better grasp on their workers comp insurance costs. This avoids nasty surprises at the end of the year and corresponding large increases in workers comp insurance premiums.
Payroll Processing
In addition to workers compensation insurance, Priority Pay Payroll can also help small employers by reducing the amount of time needed for payroll processing. For many small employers, an entire day (or more) is often set aside just for calculating payroll. This includes computing gross pay, tax deductions, any other deductions, accrued vacation/PTO and sick time and then making corresponding accounting entries.
If this same small employer utilizes the services of Priority Pay Payroll, an entire day (or longer) can be reduced to an hour. Time sheets are submitted to Priority Pay Payroll for employees for the pay cycle. Priority Pay Payroll then quickly calculates accurate payroll tax deductions, accrued vacation/PTO/sick time and any other deductions (medical insurance, etc). In addition to calculating employee payroll taxes, Priority Pay Payroll also calculates the accurate corresponding employer payroll taxes.
Payroll checks can be:
·Printed directly by the employer in their own office.
·Direct deposited into employee bank accounts.
·Laser signed and forwarded to the employer for distribution to employees.
·Placed in individual sealed envelopes for additional privacy and security.
Within an hour of completing payroll processing, an email is sent to the customer that contains an Adobe file that summarizes the entire payroll cycle, including General Ledger accounting and payroll tax obligations (employer and employee separated). Copies of all paycheck stubs from the pay cycle are also included.