Payroll is the lifeblood of any business that has employees. Without a consistent and accurate payroll process businesses run the risk of creating problems among their staff and possibly incur fines or complaints with government agencies.
While most businesses do a commendable job with their own payroll processes, there are a variety of payroll types that can be more challenging for an in-house HR or payroll specialist.
Three Special Types of Payroll Process
In addition to a basic payroll process for a typical small business, or even for an enterprise-level company, there are also specialty payroll functions for certain types of schools, for agricultural employers, and for some types of construction projects.
Campus Payroll
Private and Charter Schools have to operate with unique responsibilities regarding payroll and tax reporting requirements. For example, private schools that are operated under the auspices of religious organizations, or other educational entities, are usually treated just like any other employer for payroll purposes.
Charter schools, however, often operate under a limited jurisdiction of the local public school district, and they often opt to be covered by the School Employer’s Fund for Unemployment Insurance. This is an important distinction that affects the calculations of unemployment liability, tax deposit methods for all state payroll taxes, and the quarterly reporting of payroll information to the school’s state of residence.
In fact, so specialized are the Charter school requirements, most payroll bureaus and software providers simply do not address these specific needs subjecting the school to penalties and fees for non-compliance. Many charter schools have up to three separate State Identification Numbers. Others are run by a Foundation which may consolidate multiple schools under a single Federal Identification Number.
Agricultural Payroll
The Internal Revenue Service has separate and distinct rules for these employers which necessitate special handling. Northern California is home to a large number of agricultural businesses, such as vineyards, vineyard and winery combinations, vineyard management companies, dairies and nurseries.
These businesses often rely on the knowledge and awareness of professional payroll management firms to expertly handle reporting requirements and tax deposits for various industry structures. For example, IRS Form 943 (for agricultural employers) is filed annually, while other non-farming operations are reported quarterly. Filing with the government is often done under both methods for the same entity using a single FEIN. And year-end reporting must bring all this together matching totals on Forms W-2.
All of this must be done while allowing for the tracking of wage limits of a single employee working in both the agricultural and non-farming area of the company. Requirements for reporting and tax deposits to state and other relevant agencies are likewise met.
Certified Payroll
Certified payrolls are unique in that they are often a subset of a company’s normal payroll and pertain to just one job, usually a government project.
“Certified payrolls” consist of a specialized process involving the input of a date and job code with each entry. This is used to generate a report, in a specified format, of hours worked and labor costs for a particular job. The report presents data on a daily basis for a period of one week; multiple reports may occur within the same payroll cycle, and a single certified payroll report may span into two payroll dates.
In addition, the report should include work classification, which is in compliance with the Wage and Hour Division of the U.S. Department of Labor, using their form WH-347.
Payroll specialists and systems personnel must have the training and experience to deal expertly with the complications abound in processing and reporting certified payrolls. This involves, among other things, payroll input on a daily basis, job codes, pay codes and report parameters for extracting data for the correct reporting periods.
Certified payrolls must, of course, be handled within the context of all the normal requirements, such as state and federal tax deposits, quarterly and year end reporting, including preparation of W-2’s. And these requirements can be met at any time, even for a long-term employer who has never previously required certified payroll reports.
When to Get Professional Help
It doesn’t matter what your company does, payroll plays a key role in the success of any company. Partnering with a professional payroll management firm like Accuchex allows you to focus on your business. In addition to the time and dollar savings, you can have the peace of mind of knowing that your payroll processes are being handled competently, accurately, and on time is a great reason to consider outsourcing.
On top of that, you can be assured that the accountability and liability for compliance rests with your vendor, freeing you from the constant pressure of staying fully informed and compliant with the ever changing - and growing - rules, regulations, and legislation.
As a business owner or payroll manager you have a number of options for your payroll functions. Software that can be installed in-house or cloud-based programs offer a good alternative. But if you really want to take full advantage of the benefits available to you, outsourcing to a provider like Accuchex can still be the best decision.
Reliability, full-service options, and reputation are the hallmarks of a quality payroll management service provider. If you are currently looking to invest in outsourcing you get your Free Download: Payroll Outsourcing Guide to help you make an informed decision or call Accuchex Payroll Management Services at 877-422-2824.
