What is your cost of providing payroll services?
Take 5 minutes to determine your real costs
Enter the estimated number of payroll clients to be serviced
As you can see from the chart above, the highest costs are by far human related.
For this reason, ProPay has built-in features designed to reduce these costs.
If your software does not have the above features it’s costing you too much!
How can ProPay help you reduce your payroll processing costs by as much as 50%?
How much does it cost?
- You and your staff can spend countless hours on the phone talking with clients and collecting payroll data while it’s costing you time and money. With ProPay WEB, your clients can login using their web browser and enter the hours worked each pay date, add new employees, or make employee changes. The result is huge savings in payroll processing costs!
- For those clients that you cannot convince to use your WEB version yet, you can use the regular ProPay PC version with the Speed Entry Feature and directly enter the hours worked while talking to your clients on the phone. The software also generates a Time-Sheet your clients fill out and fax in.
Payment of Taxes
How important is it?
This is very important since it can cost you tax penalties and can create
lots of aggravation for your clients if it’s not handled properly. For this
reason, ProPay handles this task automatically each time you print
payroll checks. The software automatically creates these payments in
Paper Tax Checks
- Tax checks are printed automatically (when due) and sent to the client with each payroll. On the check stub it has the date when the taxes are due.
Electronic Tax Payments
- It uses both the ACH CREDIT method for Tax Impounding, or the ACH DEBIT method for payments directly out of the client’s bank account, or, EFTPS BATCH PROVIDER software, GOVONE and others. This is by far the most efficient way to pay taxes. It guarantees that the payment will be made on time, reduces client aggravation, and avoids tax penalties.
Filing of Tax Returns
This is also another time consuming task. Payroll tax returns must be filed several
times during the year (Monthly, Quarterly, Annually) for various agencies (Federal,
State & Local). ProPay has several ways to file these tax returns.
- E-Filing – This is the most efficient way to file 941, 940, and other states tax returns. You create one file for all of your clients and send it to the IRS, or your state. The entire process takes a few minutes and there is no need to sign tax returns, prepare envelopes, mailing of returns, postage, etc. The most important feature however is that you are guaranteed that the returns are filed on time, avoiding penalties or letters from various government agencies.
- Magnetic Media Filing – This is similar to E-Filing, except it is used for all states that are still not compliant with the latest IRS E-Filing method. Magnetic Media is also used to file W-2’s with the SSA annually.
- Paper Filing – You can print ALL your clients’ tax returns at once via BATCH PRINTING with the push of a button. BATCH PRINTING reduces the time you need to print tax returns. Still, this is the least desirable and most time consuming way to file tax returns.
How complex are garnishments?
Garnishment laws require complex calculations, taking into account federal
minimum wage, disposable income, priority rules, as well as other regulations.
There are many types of payroll deductions or garnishments, including: child
support, alimony, tax levies, union dues, savings accounts, and many more.
Each one of them requires separate ways of calculating the amount due.
ProPay can calculate all these deductions in various ways: flat amount, percentage of the gross, percentage of the net, percentage of disposable income, etc. You can also set limit amounts so deductions can stop automatically. In addition, ProPay will automatically generate a check addressed to the appropriate agency for payment of these garnishments. All of which adds up to significant time savings when processing payrolls!
There is a very sophisticated and extremely flexible billing system built into ProPay
that assures accurate billing for services provided, as well as the automatic collection
of fees. There are various options available to bill your clients and to collect the fees
for services, eliminating accounts receivable.
- System-Wide Billing – You can establish some fees on a “per check” basis, plus a base fee, and ProPay will automatically apply the appropriate charges to your client’s account each time a payroll is processed.
- Client Specific Billing – You can disable the system wide billing for any client and define unique charges that will only apply to that one client each time a payroll is processed.
- Electronic Collection of Funds – You can collect your fees electronically each time you do a payroll, or once a month for any, or all clients.
- Check Printing – A check may be printed payable to your company with each payroll, or once a month for payroll services.
- Statement Billing – ProPay can generate a billing statement automatically with each payroll, or once a month. The client can then pay from the statement.
Email Checks and Reports
Scheduled courier delivery of checks and/or reports can cost anywhere from
$5.00 – $10.00 per delivery. Urgent deliveries (next day/same day) can cost $20.00 or more. In some cases, the cost of these deliveries may exceed the
entire profit margin of most payrolls.
For this reason, ProPay has a built-in PDF file creation feature, as well as an automatic emailing feature that can create a PDF file of all the checks and/or reports. This file is encrypted and emailed automatically to the client each pay date. The client can then print the checks or the reports on site. This process saves you time, adds convenience to your clients, and saves you a bundle on delivery charges!
Online Access to Payroll Records
With that in mind, ProPay WEB is an optional add-on to our ProPay software. With it, your clients can access their own payroll records, add/remove employees, enter employee hours, and even print their own checks and reports (just to name a few). Not only does this add 24/7 convenience to your clients, but also saves you and your employees time entering payroll hours, and eliminates your risk of being held responsible for clerical errors.
Online access to payroll records is one of the biggest advantages a payroll company in the 21st century can have to compete with “the big” payroll companies.