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Payroll & Payroll Tax Services
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A payroll service is truly an exceptional value for many businesses. They provide state and federal payroll tax compliance with numerous informative reports to keep track of your business's expenses, benefits, etc. However, many business owners have mistakenly entered into PEO or Employee Leasing arrangements for payroll & tax services with the incorrect assumption that the PEO is the only place of acceptance or provider for the work comp, payroll/tax and benefits management they need.
That is NOT the case. I can orchestrate the coordination of your, ProActively managed work comp program, payroll/tax preparation and optional benefits, under one "No Down Payment"/"Pay as You Go" plan that can provide you with SUBSTANTIAL SAVINGS!
The difference in cost between a PEO and Payroll Service is
HUGE!
PEO's charge you an "admin fee" for identical payroll services, typically from 3% to 6%. The "admin fee" is assessed to GROSS PAYROLL which is downright PUNITIVE, especially for higher paid employees like owners & managers.
Payroll Services charge only a weekly minimum flat fee, such as $25 then a "per check fee" such as $1.50 per check which is substantially less expensive than a PEO's percentage of gross payroll. Literally, an employee making $100,000 per year, would only be charged $1.50 per check per week or $78.00 per year! ($1.50 x 52wks = $78.00/yr) The PEO would charge $3000/year! ($100,000 payroll X 3% = $3,000/yr) for that ONE employee!
In the example below, we will take a small business with 10 employees and an estimate of $5,769 payroll per week or $300,000 payroll per year:
PEO/EMPLOYEE LEASING ANNUAL COST ESTIMATE
$5769 payroll/wk X 3% admin =$288 admin fee/wk X 52wks= ..............................................$9,000
PAYROLL SERVICE ANNUAL COST ESTIMATE
$25 per week base fee
+$15 /week ($1.50/emp X 10 emp)
$40 /week total fee X 52wks = $2,080
PAYROLL SERVICE SAVES $6,920 PER YEAR!
Why would you want to be with a PEO that is charging you an ASTRONOMICALLY EXORBITANT amount for your payroll and tax service? Even if they tell you they are charging you only 1% admin fee (very unlikely), that is still more expensive than a payroll service, plus, the PEO will make up the difference through the fee they charge you for the work comp.
The financial stakes are too high not to have your current work comp/payroll service or PEO/Employee Leasing arrangement reviewed for overcharging. There is an extremely high probability that I WILL find an appreciable difference in your favor.
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