Payroll Processing: Payroll service providers handle all aspects of payroll processing. This includes calculating employee salaries and wages, factoring in overtime, bonuses, and deductions, and ensuring that all employees are paid accurately and on time.
Tax Compliance: Payroll companies are responsible for calculating and withholding the appropriate federal, state, and local taxes from employees’ paychecks. They also manage the timely submission of payroll taxes to government agencies to ensure compliance with tax laws and regulations.
Direct Deposits and Check Issuance: Payroll service providers can facilitate direct deposits into employees’ bank accounts, eliminating the need for physical checks. However, they can also generate and distribute paper checks if required.
Employee Self-Service: Many payroll management services offer online portals or software that allow employees to access their pay stubs, tax forms, and other relevant information. This self-service feature can reduce the administrative burden on HR departments.
Compliance and Reporting: Payroll companies stay up-to-date with ever-changing tax laws and regulations, ensuring that businesses remain compliant. They also generate reports and provide documentation needed for audits and financial planning.

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