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Payroll Processing
Payroll is the remuneration paid to employee for a certain period by the employer. Payroll usually includes wages, commissions, overtime pay, bonuses, pay for vacations or holidays and pay for sickness. A company may have full-time employees as well as part-time employees. Hence, employees are remunerated at a set rate. Wages are paid as fixed salary or as hourly wages depending on their work. A payroll specialist calculates these different methods of payments.

Calculating payroll can be complicated and time-consuming. For that reason employers turn to other means to make this task easier. There are payroll software programs that calculate payroll. Small business companies usually use such computer software programs. There are trained accountants who handle payroll systems. There is yet another method of setting up payroll systems. These are outsourcing such functions to outside service providers. Today, a large number of firms outsource this task to external firms. There are payroll services that handle the task of payroll management.

Payroll services are companies that deal with payroll processing service. For payroll processing service these companies usually charge a fee. The employer opens an account with a payroll service and gives the employee listing, their work hours and other details. Payroll service company then processes these data and the wages are transferred from the employer’s bank to the account of payroll service. The wages are paid either by standard check or direct deposit. Payroll service then provides the company with tax report and payroll. With the arrival of the Internet, a lot of online payroll services have come into the scene. These online payroll services handle payroll for companies. They also handle other types of services also.