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Payroll companies manage your organization’s wages, bonuses, commissions, pay for vacations or holidays, pay for sickness and overtime pay. Employees are salaried at a set rate as companies may have full-time employees as well as part-time employees. Payments are made as fixed salaries or hourly wages depending on the type of their work. A professional accountant calculates and issues paychecks.

Payroll accountant deducts various withholdings such as payroll taxes, insurance premiums, union dues, employee benefits, charitable contributions and other deductions from employees’ paycheck once payment is calculated. But handling payroll can be complex and time consuming. Payroll Companies make this task easier by preparing payroll for companies. Now a day, many companies prefer to outsource this duty to payroll services. A large number of small business firms usually fall back on such Payroll Companies since they cannot handle the task on their own.

Payroll services are accounting firms that prepares payroll for employers. Payroll Companies mainly perform jobs such as calculating Social Security and Medicare taxes, calculating and withholding federal, state and local taxes, printing employee paychecks making direct deposit of pay into the bank accounts of employees, filing quarterly and annual payroll reports, depositing withheld taxes with the authorities and preparing year-end employee tax documents. Some payroll companies even offer legal services, power of attorney, wills, estate services etc. For additional services such as attorney payroll power service or financial services, you have to pay additional fees.