Payroll processing
What should a payroll provider actually handle?
At minimum: calculating pay, withholding and filing payroll taxes, and depositing pay on schedule. Most providers also handle year-end forms (W-2s, 1099s) and direct deposit.
Beyond the basics, providers differentiate on multi-state tax handling, support for tipped or multiple pay-rate employees, integration with time-tracking and accounting software, and how quickly off-cycle or correction runs can be processed.
Commonly explored when
- Running payroll manually or through a bank is becoming error-prone or time-consuming
- Hiring across multiple states for the first time
- Switching accounting software and needing payroll to integrate cleanly