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A bureau for payroll services is an accounting establishment that is concentrated in preparing payrolls for businesses that it serves as a payroll processing company. These type of accounting business is typically ran by a certified public accountant or CPA though it is often referred to as a service bureau not a CPA firm which distinguishes itself with giving payroll services to clients rather than the general accounting and tax services which concern more a certified public accountant firm. Usually it is the small business firms that enlist the services of a payroll services bureau since it does not usually merit having a payroll department but is still big enough in scope to have payroll payment problems.

Payroll services bureau usually provides financial services like the printing of paychecks for the company employees for release in time with the payday. It is also their task to deposit salary fund directly into the employee’s bank account if the business owner so desired. Another task they do is the calculation and withholding of the appropriate taxes from the employee’s salary pay, employer payroll taxes calculation, withheld taxes deposit with the tax authorities, filing of payroll reports on a quarterly or annual basis and the employee tax documents printing and filing. An example of this document would be the W2 form which is used for filing an employee’s tax obligations.

In addition to the above mentioned services, a payroll services bureau provides additional financial services that a client firm may require such as the tracking and reporting of human resources, importation of payroll and general ledger data files into the client company’s accounting data base, retirement and savings plan management, health benefit plans and time keeping. This can either be done through the traditional manual form by using a time clock or the more modern online method. They can also act as an intermediary for worker’s compensation insurance.

Moving money from the client to the party that a client owe’s money from can be done in several manners by a payroll services bureau. The simplest is through printing of the account number of the client in Magnetic Ink Character Recognition or MICR digits at the bottom of checks from a blank check stock. The fund will be withdrawn from the client’s bank deposit when the check is cashed by the employee. Other service bureaus initiate automated clearing house or ACH transactions from the client. ACH is used to process both debit and credit transactions in large volumes that are originated in batches. Payment remittances are done in paper checks against the holding account of the bureau or by electronic means. Since a payroll services bureau can serve hundreds of thousands of pay periods per client, the interest earnings they gain from these transactions are substantial. A good service bureau should be able to build good long term customer relationship. It must be responsive to every customer needs and requirements and should be pro-active in helping with the achievement of the clients needs. An assurance of a lasting working, productive relationship can be had if the client is catered well by his service bureau.

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