BASIC Payroll Plus
Frequently Asked questions
Can I pay these employees as independent contractors to save taxes?
If you are using the word employee, then no you cannot. This is always a hot topic with the Internal Revenue Service. Generally, individuals that you hire are treated as employees subject to income tax withholding and unemployment taxes.
There are cases where individuals are classified as independent contractors. Independent contractors are responsible for their own taxes, insurance and tools. We can provide a list of questions that will help you make the determination. Since our role is to keep our clients in compliance we always recommend consulting a CPA or an attorney if you still are unsure about a classification.
When is the latest that I can submit payroll for same day processing?
To operate efficiently we schedule our day around the work to be completed. If you require an additional payroll we ask that we be notified in advance so that we can properly plan. We generally request information by 2:00 pm, but we can make arrangements for later processing if needed.
How can I submit payroll?
We try to be very flexible and find the manner that best fits the clients’ schedule. Our preferred method is an email with an Excel file. The Excel file is easy to read and contains totals for us to review.
If clients want control over their data, or have additional reporting needs, payroll hours can be entered using our PC based remote software or our on-line product. Employee changes and hours are then uploaded into our software for processing.
Another option is to use our timekeeping product. Employee time is tracked and reviewed online. Once approved by management we then import the data and process payroll.
When can we switch payroll providers?
A switch to BASIC can be completed at any time. However, the best time to switch is at the beginning of a calendar quarter. We enter year to date payroll data and reconcile to each tax form that has been filed.
If switching mid-quarter it becomes a little more difficult to balance the payroll totals for that current quarter. If a prospective client is very unhappy with their current provider we can get the switch done.
When a change is made during a year we complete all year-end filing. We will assist the new client in notifying the previous payroll provider as to filing requirements.
When and how do we notify our current payroll provider of switch?
BASIC Payroll Plus will assist in notifying the previous payroll provider. We recommend waiting until the quarter is complete to assure that there is an understanding of tax filing requirements. The previous payroll provider will prepare and file the quarterly tax forms based on their payroll preparation and tax administration. We take over with the first payroll that we prepare.
I received a blank tax form in the mail, do you need a copy?
There are several items that we do like to see. Each December it is very important that we receive a copy of the state unemployment rate determination. This is the only tax rate that changes annually and is calculated based on the clients’ experience. As a service we review the rate calculation for accuracy. Receiving this form early helps insure filing accuracy throughout the year.
Secondly, we do like to see the quarterly unemployment forms. This form will confirm the unemployment rate and may include a credit or balance due. Mostly a balance due or credit will be for pennies due to rounding; a larger amount may indicate a filing problem from a previous quarter.
Lastly, each year the Internal Revenue Service determines the tax deposit filing frequency. Monthly tax filers will be required to file more often once their taxes reach a certain level. BASIC Payroll reviews our client list each year and will make the change when required. However, for new clients we do not have all of the information required.
Is it beneficial for my company to have taxes swept?
Sweeping taxes means that BASIC Payroll Plus moves the dollars required to cover tax liabilities into a trust account. This transfer is completed along with employee direct deposits and payroll fees. There are several benefits to this method of tax filings.
First, there will only be one general ledger entry to record and reconcile covering direct deposit, taxes and fees. This will save time and help maintain a more accurate bank balance. Without sweeping clients must post each tax payment separately and could possibly miss a posting.
Second, this method assists in budgeting and helps ease cash flow. With some taxes paid monthly, and some quarterly, clients may be surprised by a large amount due. Clients like the fact that tax liabilities are covered with each payroll.
Third, clients like the fact that we assume responsibility. Too many clients have failed to sign forms and mail payments. We understand that clients may like to sign employee payroll checks, but also know the cost if tax payments are not submitted timely. We have had clients mail checks without forms, submit the forms without checks, and bounce payments. Correspondence resulting from these errors creates work that could be avoided.
Finally, sweeping taxes is far more efficient for our service bureau. We work hard to keep our costs down, which in turns allows us to keep our fees competitive.
Can your company complete my 1099 forms?
Yes we can. This service is priced the same as our annual W-2 filings. Some clients have us pay their 1099 vendors through our payroll system so that we already have the correct information.
We ask that the information be provided to us as early as possible.
I missed hours on an employee. What can we do to get them paid?
When hours are missed there are really two options. We can run an additional payroll, but this will incur additional payroll fees. If the employee requests direct deposit, the funds could be in the employee's account the next day. The other solution would be for us to calculate the additional net payroll. The client then issues a manual check to the employee. This manual check and taxes would be processed with the next payroll run.
If an employee is overpaid we suggest voiding the original check and issuing a new payroll. Payroll fees apply if an additional payroll is completed. Or, if possible, the employee's pay could be shorted the following payroll period.
Do you offer time clocks?
BASIC Payroll Plus added timekeeping products during 2005. The system tracks employee time, and once approved by management imports directly into our software. This system, and direct import, saves time and eliminates human error when calculating timecards. Setup is a breeze. With 15 minutes training you will be ready to go.
Cost reporting has never been more important. Our system allows the employer to track labor cost by department or product with easy to read reports. There is no software to install. Data editing and reporting is conveniently performed on the Web.
Employees can key a code or swipe a card in less time than it takes to line up punches on a timecard. Office employees can punch in/out on their computers.
Can you send copies of my reports to my accountant?
We can send copies of reports to your accountant for a small shipping fee. This request was part of the reason we developed BASIC Payroll Online. Our BASIC Payroll Online product allows an individual, with a login and password, to view payroll reports, employee information and employee payroll stubs online. Accountants can be given a password to review reports at any time, and print those that they need. This product, when used with direct deposit can make payroll a paperless function.
Employees have a separate site. On this site, after creating a login and password, employees can view or print their payroll stubs.
To view a sample of our online product please visit:
https://online.basicpayrollservices.com/payadmin.php
Employer ID abcc
Login Name sample
Password sample
How do I access my payroll check online?
Employees can view their payroll stubs online if their employer uses BASIC Payroll Online. Please visit the following site:
https://online.basicpayrollservices.com/payreview.php
The first time an employee enters this site they will need to create a login using the red link below the box. To create a login and password an employee will need to answer questions with information from a recent check stub. They should have this stub in front of them.
If I am using online software and the internet is down, can I send my payroll into BASIC for input and processing?
We will always do what it takes to get your payroll done right. Whether it is computer issues, vacations, emergencies, or even weather related, we will input your payroll off a fax sheet or telephone call. We understand the confidential nature of payroll and that many clients only have one person responsible for payroll reporting.
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