What Are Payroll Services?

Payroll services manage the calculation, processing, and compliance of employee (and sometimes contractor) pay. They ensure employees are paid accurately and on time while meeting all payroll tax and reporting requirements.

Payroll services handle paying your team and managing the related tax responsibilities.

What Payroll Services Include

Payroll services typically handle the operational and compliance side of payroll to ensure employees are paid accurately and on time, including:

Pay calculation – Calculating wages, salaries, overtime, and bonuses

Tax withholdings – Withholding federal, state, and local payroll taxes

Payment processing – Processing direct deposits and issuing paychecks

Payroll tax filings – Preparing and filing required payroll tax forms and reports

Tax remittance – Remitting payroll taxes to the appropriate government agencies

Year-end forms – Issuing W-2s for employees and, when applicable, 1099s for contractors

Benefits deductions – Managing deductions for health insurance, retirement plans, and other benefits

Why Payroll Services Matter

Reliable payroll services help businesses:

• Avoid costly payroll tax penalties

• Stay compliant with federal and state regulations

• Improve efficiency through automation

• Provide employees with consistent, timely pay

Payroll services handle the execution and compliance of payroll, allowing business owners to focus on running their business with confidence.