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Was speaking with a payroll serivice co. representative today about having them take over all our payroll services/taxes etc. The service was PAYCHEX Inc. Was wondering if anyone else uses such services and what they thought. The pricing for the service was rather inexpensive I thought, something like $27.00 a week to do payroll for like 10 employees and all tax related issues. Plus in the hour it take me to do payroll, i figured i could be in the field working or doing estimates making 3x what I pay them for their service....
02-22-2002, 06:25 PM
We use paychex and pay around 100 bucks a month for 5 paychecks which includes courier service every week. I love it. I am about to switch everyone over to twice monthly paychecks and direct deposit of payroll taxes as well as their paychecks. I love them.
02-22-2002, 07:12 PM
I'm a CPA and I hate doing payroll. We do some for clients at our office.
If it was my choice, we would refer them all to someone like Paychex. ADP is another big payroll processing service, and I'm sure there are probably some local in your area.
In my opinion, it is hard to beat the service for the money, all you have to worry about is getting them the hours for your employees and making sure the money to cover the payroll is in the bank. They will take care of all tax filings, etc.
02-22-2002, 08:07 PM
We've used Paychex for the last 3 years. Been pretty happy with them. Definetly worth the monthly fees not to have to worry about all the paperwork hassles with the IRS. They have missed a few quarterly payments on our behalf and we get the IRS letterhead demanding the missed payment. No big deal. They have changed reps on us (due to their turnover in help) and thats what causes some minor probs. They are great people when you do get a good rep though. Plus their payroll fees are 100% tax deductable. I'd say go for it. They say to succeed in business to surround yourself with professionals and you can't go wrong. Payroll services are just like having a good CPA and lawyer.
02-23-2002, 12:23 PM
We have used Paychex for 7 years. I wouldn't consider doing payroll any other way. They call on time when they're supposed to. Never had a problem.
We use them for the regular payroll service and tax pay. This way I'm not responsible for remembering when a payment is due - and possibly being late with it. They just tell me how much I have to have in our account every other Friday.
We keep our payroll checking account separate from our regular checking account. So every other week I just have to make a phone call to transfer in the necessary funds. I couldn't ask for an easier way to take care of payroll.
Cost for all of this... about $110 a month for about 9 to 12 checks per payroll period. We report on Monday and payday is on Friday. So they mail the checks, usually have them Tuesday or Wednesday. If it's a holiday week, we'll use their courier service for another $4.50.
I like your idea of using a seperate checking account for payroll... i think i may do that... Also, I did sign up with them and they are no taking over our payroll... I just don't have the time for that anymore... i can be doing more productive things. The cost for me is like $24.00 -$27.00a week for about 7-10 employees. i think its well worth it.
02-23-2002, 08:17 PM
We use paychex, just check with your rep about the fees. When we signed up the fee was $27.00 per week including messenger service to deliver them to our office. this was for 2 employees then once the season was underway we had 10 employees on the payroll and the fee went to over $50.00 per week. I called the rep and I was told that the base fee was for up to 2 employees and after that it was an additional $2.50 per employee per check. I was going to pull out on the spot then he made an "adjustment" and charged $1.00 per employee on top of the $27.00 a week fee. So now it cost us $35.00 per week. that's not a bad price. It take me about 1 minute on a Monday to call in to paychex and the checks are delivered on Wed. Plus they do all your tax pays and assume all liability for errors and late payments to the IRS. Makes end of year Taxes easier for the accountant.
With paychex and ADP do they offer the option to purchase health care? How much do they charge you per hour if your pay rate is $10.00 per hr? And does the hourly rate include workmanscomp insurance?
02-24-2002, 05:54 PM
Chip... you'd have to check with the services. I don't believe they offer insurance coverage, either health or workers' compensation. I think they just facilitate the processing of information. As well, I don't think Paychex processes the WC paperwork... I think you have to do this. But it's very simple with their payroll reports to do it yourself.
02-24-2002, 07:25 PM
Paychex is a payroll service not an employment agency. It's your resopnsibility for WComp Ins. They just handle printing the checks, paying and filing the taxes on time on your behalf, giving you your quarterly reports for the accountant, and your year end report and W-2's for your employees. If you want Health Insurance then the way to go is with a company called EPIX I just found out about them Friday and am going to look into it tommorow.
The representative told me that PAYCHEX DOES in fact have a workers comp. policy that you can get... they also offer 401K programs too... just a FYI.
the good thing about their work comp. is that you pay weekly based on what your payroll is that week... so there's no down payments or audits at the end of the year for workers comp.
02-24-2002, 09:30 PM
Paps is correct about the workmans comp. We switched to them this year and they take it out according to the amount of payroll used, no down payments or audits. Well worth it.
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