Payroll processing rates

[Jesse]

Thanks for the feedback. I only have one business that I started to do payroll for with 9 employees. I am charging $30 per payroll (biweekly). He brings in the time cards and I process the payroll and print the checks supplied by him. I also expect him to tally up the hours, which he has now asked that I do for what I am charging. I don't think this should be inclusive and I didn't think my charge was excessive.

I tried to get him to set up a seperate account to deposit the employee tax w/held and the employers taxes so he'll have the money on hand when due. He has yet to do this so I make sure to print a liability report w/ totals hightlighted. I did the first quarter reports and printed the checks and he is still "sticker shocked". I don't know how else to help him w/ this and try to explain this in NOT your money so if you don't pay it's equivalent to stealing from your employees.

This is a new business and I am trying to be helpful but now am wondering if I shouldn't send him down the road.

[Gretel]

Are you writing the payroll checks? That would make a big difference.

Yes, I am printing the checks on forms supplied by clients.

[JohnH]

Suggestion on the separate payroll account.

Have the client deposit the gross payroll in the separate payroll account, plus a percentage to cover the FICA/MED/SUTA. In my state the SUTA rate averages 2.70%, so I have them deposit gross payroll plus 11% (7.65% plus 2.70%, rounded up). Then write the payroll checks out of the payroll account. The only deduction from the deposit would be any payroll withholdings for uniforms, insurance, etc. For example, if the gross payroll is $5,000, then they would transfer $5,550 to the payroll account before writing the checks.

This enables them to always keep the withheld taxes plus the matching and additional taxes segregated from operating funds and there's never a surprise when you hand them the payroll tax reports. I've found that any client who does this never complains about the reports, and almost any client who won't do this is a hopless case.

[equinecpa]

I set up any customers who want assistance with payroll on Paycycle. They like it, and if they need help I can login and assist them. I can't do payroll for less than Paycycle charges and I don't have to be tied down doing payroll reports.

I think it is a great service and encourage my clients to use it. They have accountant discounts most of which I pass on to my clients...I think I'm charging $30.00 a month for the service.