How does payroll outsourcing work?

How does payroll outsourcing work?

Are you ready to go from DIY or in house payroll to letting someone else handle it for you? If you’re business has experienced growth as of late you may find it advantageous to let someone handle your payroll, by using a payroll outsourcing provider.

Payroll outsourcing can differ from provider to provider but this is the gist. After you decide what business to work with, the business will need information about your employees and your current payroll practices. You’ll need to provide a list of current employees for your business to your new provider. Your provider will ask for:

  • Your pay period(s).
  • Pay rates for employees.
  • PTO policy.
  • Benefits that are currently offered.
  • Information about garnishments
  • Other payroll deductions

In addition to information about rates and garnishments your payroll outsourcing provider will need to know if you still plan on filing your 940 and 941 taxes or if they need to take over that task. It’s best to let your provider handle that task. Your Federal Unemployment Tax Act, FUTA corresponds with the Form 940. The Form 941 relates to FICA, which is the Social Security and Medicare taxes that are paid on the behalf of your employees.

Who handles the payroll taxes is a huge differentiator?

At Atlantic Payroll Partners we’re a PEO, which is a professional employment organization. We typically handle the payroll and the payroll taxes for our clients. Our payroll fee includes your taxes and payroll. Due to the size of our business, we pay our taxes daily. When working with a PEO, you use the PEOs FEIN number; that’s how the taxes are handled so that you are no longer responsible for them.

The opposite of a PEO is an ASO. ASO stands for administrative services only, an ASO will typically provide payroll but they will not handle the payroll taxes. If they handle the payroll taxes, there is usually an additional fee for the taxes. If you work with an ASO your taxes continue to be filed under your FEIN and continue to be your responsibility.

That’s the simplest way to break down the difference between a PEO and ASO. PEO, you use the payroll companies FEIN; ASO you continue to use your FEIN.

What does payroll outsourcing cost?

The cost varies, you’ll normally pay either a flat rate or a % of the payroll. Typically, you’ll find that the overall cost is lower than the cost hiring someone to handle the task in house; when you compare the expense salary and benefits to payroll outsourcing. That’s a general way of calculating payroll outsourcing cost.

Copyright 2021

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Why Atlantic Payroll Partners

The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.

We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.

Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.

How to retain new employees?

How to retain new employees?

The typical process for hiring new employees goes something like this. Your human resources (HR) department works hard to find the perfect candidates and convey the benefits, bonuses, positive culture, and career growth of working for your company. Your HR representative offers the best candidate a position and the candidate accepts and signs the offer letter.

Demonstrate They Are Valued

Demonstrating to new employees how important and valuable they are can go a long way. Employment is a two-way relationship, especially for highly sought-after individuals. Although many companies officially use probationary periods with new employees, new employees also decide whether they like working for their new employer. After all, from the employee’s job search, his or her resume is most likely still on social media and in recruiters’ hands. So how can you keep them engaged with your company and job?

Make Them Feel Welcomed

Consider some of these affordable suggestions:

  • Send or give the new employee a welcome card that communicates how happy you are to have them as part of the team.
  • Before the new employee’s first day of work, set up their workstation. It can be frustrating to be unable to contribute because equipment isn’t ready. The longer it takes to set up, the more you communicate that your new employee is simply not a priority.
  • In addition to having a company list with titles and phone numbers, provide a list of the appropriate contacts for common questions, such as the following:
    • Expense reports, general accounting questions
    • Ordering supplies
    • Technical expertise
    • Administrative questions
    • Local businesses and directions
  • Ask the new employee to speak with several of their new coworkers. You may even want to create a mentorship program to encourage seasoned employees to partner with new employees to teach them about the company culture as well as the job itself.

Companies spend a lot of time and money recruiting employees, paying referral fees, and hosting company functions. Being proactive about the small things that make the best first impression can make a significant difference in the success of each employee and each project.

Do you have more questions about onboarding new staff members? Contact us today to learn how we can help.

Copyright 2021

Why Atlantic Payroll Partners

The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.

We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.

Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.

Remote Work Timekeeping

Remote Work Timekeeping

In August 2020, the U.S. Department of Labor released Field Assistance Bulletin No. 2020-5. The bulletin addresses “Employers’ obligation to exercise reasonable diligence in tracking teleworking employees’ hours of work.”

While the bulletin covers issues arising directly from the COVID-19 pandemic, it also applies to remote work arrangements in general.

FAB 2020-5 affirms that employers subject to the Fair Labor Standards Act must pay nonexempt employees for all hours worked. Including work done from home and work that is “not requested but suffered or permitted.” Regardless of whether you authorized the work or the employee requested it, you must pay the employee for work performed if you know — or have reason to believe — they did the work.

The FLSA specifically mandates the employer to exercise its control so that employees do not perform work the employer does not want done. In other words, the onus is on the employer to prevent work “when it is not desired.”

As the bulletin states, it may not be easy to define “when an employer has reason to believe that the work is being performed,” especially when the employee works offsite or at a location not controlled by the employer. Consequently, when resolving the issue of whether an employee should be paid for unscheduled hours worked, courts consider whether the employer should have — via reasonable diligence — acquired knowledge that the hours were being worked.

Conducting reasonable diligence

As mentioned, the reasonable diligence standard adheres to what the employer should have known (instead of what it could have known).

You can show diligence by implementing reasonable procedures for employees to report scheduled and unscheduled work hours.

If an employee fails to report unscheduled work hours through this reasonable reporting process, you do not have to undertake impractical measures to determine whether the unreported hours were actually worked. Such impractical measures may include weeding through non-payroll records to decipher whether the employee worked more hours than they reported.

Ultimately, by not using the reasonable reporting procedure to inform you of unscheduled work hours, the employee has effectively thwarted you from preventing the work. Additionally, they prevented you from knowing your obligation to compensate them. Importantly, “the FLSA does not require that employers pay for work that it did not know about and had no reason to know about.”

FAB 2020-5 makes clear that a time reporting system does not constitute reasonable diligence if it discourages or stops employees from correctly reporting their hours worked, or requires employees to waive their rights to compensation under the FLSA.

The Point

The key takeaway is that employers with nonexempt remote employees should develop sufficient and transparent procedures for reporting scheduled and unscheduled work hours. If an employee fails to use this system, you may be able to successfully argue that they thwarted your efforts to prevent unwanted work.

How Atlantic Payroll Partners can help

We can help by providing you with timekeeping tools and payroll service. Old school timekeeping is likely going to be a pain when it comes to remote work. Having your employees use modern tools is the efficient way to handle timekeeping and payroll. As a local payroll company we have experience in this arena. Managing payroll is the name of the game for us and we’re more than willing to help your business, regardless of the number of employees. If you’re interested in learning more, get a quote or call us at 772-466-0440.

Copyright 2021

Why Atlantic Payroll Partners

The biggest payroll companies probably won’t have time for your business. It’s that simple, you’ll be a number. At Atlantic Payroll Partners, you’ll be the opposite. We’ll know more than your name; we’ll know the names of your children and their birthday’s as well. We will know you.

We’ve been helping Florida business by managing their payroll and providing workers' compensation quotes for ten years. We help keep payroll cost affordable by provided transparent PEO payroll quotes that allow you to plan your budget accordingly. Like the big payroll companies, you can manage your payroll and payroll timekeeping with us, while reaping the benefits of PEO risk management.

Thinking about payroll outsourcing can be scary. Make sure you know what to expect from payroll outsourcing providers; to make the best decision for your business. In addition to offering payroll, and workers' comp quote we offer: Human Resource consultations, Accounting services, and benefits such as, 401ks and Healthcare plans.