Payroll Outsourcing

Payroll outsourcing is a very common and growing practice these days. Payroll is an important business function that deals with the process of paying employees for services rendered. Payroll outsourcing can be defined as the accomplishment of a payroll task by some external agency. There are many reasons why companies outsource payroll, but the most prominent benefit lies in the fact that it often saves money. Basic payroll outsourcing services include calculating paycheck and tax obligations for each employee, printing and delivering checks, and providing management reports.

Every business owner knows that handling payroll can be a headache. Preparing payroll internally can cost valuable hours of employee time every pay period, and require expensive accounting software and training. Besides, the person handling payroll of an organization internally needs to keep up to date with changes in personnel, deadlines, and tax requirements on an ongoing basis. Payroll outsourcing is an affordable way to take away these burdens, because it is a time-saving and cost-effective alternative to internal payroll processing.

Payroll actually commences with the worker signing up with a company. A typical payroll report contains items such as gross hourly wages and gross salaries, bonus payments including stock given as a bonus, overtime pay, severance pay, per diem and travel allowance, and contributions to deferred compensation by employees.

Today, payroll outsourcing is a vital part of an organization’s payroll and benefits functions. This will improve employee satisfaction and enable the organization to focus its assets on mission-critical areas. The market for payroll outsourcing services is competitive and there are a number of key points, such as speed, accuracy and ease of use, to consider when opting to use a payroll company.

Though payroll outsourcing may prove highly valuable for many organizations, it also has many drawbacks. It is essential that every company precisely assess its requirements to determine if outsourcing is a feasible alternative.

Payroll Nevada, Unique Aspects of Nevada Payroll Law and Practice

Nevada has no State Income Tax. There for there is no State Agency to oversee withholding deposits and reports. There are no State W2’s to file, no supplement wage withholding rates and no State W2’s to file.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Nevada cafeteria plans are taxable for unemployment insurance purposes. 401(k) plan deferrals are taxable unemployment purposes.

Nevada doesn’t have income tax.

The Nevada State Unemployment Insurance Agency is:

Employment Security Division

500 E. Third St.

Carson City, NV 89713

(775) 687-4510

http://www.detr.state.nv.us/es/es_index.htm

The State of Nevada taxable wage base for unemployment purposes is wages up to $22,000.00.

Nevada has optional reporting of quarterly wages on magnetic media.

Unemployment records must be retained in Nevada for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Nevada State Agency charged with enforcing the state wage and hour laws is:

Department of Business and Industry

Office of Labor Commissioner

555 East Washington Avenue

Las Vegas, NV 89101

(702) 486-2750

http://www.laborcommissioner.com/

The minimum wage in Nevada is $5.15 per hour.

The general provision in Nevada concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 8-hour or 40-hour week (10-hour day, 4-day week if agreed to).

Nevada State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

  • Employee’s name
  • Employee’s address
  • Employee’s social security number
  • Employer’s name
  • Employers address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.

The information can be sent as a W4 or equivalent by mail, fax or electronically.

There is a $25.00 penalty for a late report in Nevada.

The Nevada new hire-reporting agency can be reached at 888-639-7241 or 775-684-8685 or on the web at [http://detr.state.nv.us/uicont/uicont_newhire.htm]

Nevada does not allow compulsory direct deposit

Nevada requires the following information on an employee’s pay stub:

  • itemized deductions
  • Nevada requires that employee be paid no less often than semimonthly; FLSA-exempt employees paid by out-of-state employers can be paid monthly.

    Nevada requires that the lag time between the end of the pay period and the payment of wages earned from 1st-15th, pay by end of month; 16th-end of month, pay by 15th of next month to the employee.

    Nevada payroll law requires that involuntarily terminated employees must be paid their final pay immediately and that voluntarily terminated employees must be paid their final pay earlier of next regular payday or 7 days.

    Deceased employee’s wages must be paid when normally due to the surviving spouse or distributee after affidavit of right is shown; 40 days after death; and if the estate is not over $20,000.

    Escheat laws in Nevada require that unclaimed wages be paid over to the state after one year.

    There is no provision in Nevada law concerning record retention of abandoned wage records.

    Nevada payroll law mandates no tip credit may be used against State minimum wage.

    There is no provision in Nevada law concerning tip credits against State minimum wage.

    In Nevada the payroll laws covering mandatory rest or meal breaks are only that all employees must have 30 minutes rest after eight hours of work; 10 minutes rest after 4 hours.

    Nevada statute requires that wage and hour records be kept for a period of not less than two years. These records will normally consist of at least the information required under FLSA.

    The Nevada agency charged with enforcing Child Support Orders and laws is:

    Child Support Enforcement Program

    Human Resources Division

    100 N. Carson St.

    Capitol Complex

    Carson City, NV 89701-4717

    (702) 687-4744

    [http://www.hr.state.nv.us/]

    Nevada has the following provisions for child support deductions:

    • When to start Withholding? 14 days after receipt of order.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? “Promptly”
    • Maximum Administrative Fee? $3 per payment; $2 per payment to state treasurer.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

    What Are the Advantages of Payroll Outsourcing?

    The most important thing for any organization is its employees; a company has to make its staff content in order to remain effective, fruitful, and harmonious. But, when problems arise, the connection between the human resources and employer can rapidly break up. This is the why numerous companies outsource their payrolls to shun problems in giving salaries.

    Your company can take advantage of such service providers. However, if you are busy in creating and marketing your products and other matters of your business, but, if you have hired a service, you don’t have to be anxious about your payroll.

    Nowadays, many organizations are outsourcing this task, so they can concentrate on other matters of their businesses. In this article, we will talk about some advantages of payroll outsourcing. Have a look:

    Payroll Software:

    To manage your payroll, you don’t have to pay for costly softwares. This will save your time and money in establishing and maintaining it. You can make your own software for your accounting procedures. You will be able to save your money on expensive updates of the software as the service will do it for you.

    Save Your Time:

    On every pay day, human resources spend nearly ten hours in doing this work. If you use services of any company, your employees can save their time, and use it in some other work of your company which is good for you.

    Paper Check or Direct Deposit Options:

    You have a choice to select between direct deposit and paper check to pay your staff. Whatever decision you make, legislative taxes and withholdings are handled by the firm you hire.

    Tax Rules:

    When you create it on your own, it might be annoying to use the changing tax set of laws. If you hire a service, they will adjust the tax rates. If they make any error, they will pay for it. You don’t have to worry about it.

    A Few Helpful Services:

    You should not hire anyone, especially to do this task, when you have hired a service. The service will also deal with reassigning tasks, unemployment insurance, and layoffs. In this way you can focus on other things of your organization.

    Self Submission of Payroll Statistics:

    Often, such services depend on softwares; human resources have to submit their working hours for verification. The staff will utilize an electronic card on the provider’s website in order to record their working hours. When they do it, their manager check out their records, and approve the correct time card for payment. In case the manager is not available on their payday, the human resources will get the salary anyway. This is the biggest benefit of self submissions of payroll data by the staff.

    I hope after reading the above-mentioned information, you are now aware of the numerous advantages of the payroll outsourcing. There are some more benefits, but I mentioned a few of them which I liked the most. If you want to learn more on this topic, you can easily find more information on the internet.