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Issue link: https://cpapracticeadvisor.epubxp.com/i/460060
February 2015 • www.CPAPracticeAdvisor.com 13 HOW TO DO PAYROLL BETTER How to Organize Workfow of Payroll Services Provided to Clients Contributed by Mark McAndrew, Director of Consulting, XCM Solutions www.xcmsolutions.com In general, accounting frms should go through the following steps to set up their payroll clients' workfow: • Identify the payroll clients • Using a workfow software solution, create a payroll task for each client • Determine if the payroll task is weekly, monthly, quarterly, semi-annual, etc. • Assign internal due date requirements based on the tracking needs for each client • Defne a consistent process that each client task will follow (prep, review, etc.) • Determine the level of detail the frm is looking to control (for example: frm or client specifc procedures or possibly no additional details) • Assign the work to the staf (a workfow system such as XCM can automate the assignment process) • Ensure staf follow the defned process • Report on your clients, as necessary "I truly believe communication is critical in a payroll setup. So many sole proprietors and single member LLCs end up paying themselves on payroll and they are not legally allowed to. Payroll is a sensitive topic. Requirements and regulations around S-Corps are strict and require a lot of attention throughout the year. Robotic payroll services don't always serve the best interest of the client. Price is NOT the important thing here." Dawn Brolin, CPA How to Prepare for Your First Payroll Engagement Contributed by Dawn Brolin, CPA, CGMA, www.powerfulaccounting.com • Determine if client has an EIN, state registration number, and unemploy- ment registration (and if not, register for these) • Determine the entity structure • Require all employees to fll out a W-4, state W-4 (if applicable), I-9, and direct deposit form (if applicable) • Request copies of employee con- tracts – if they don't have these, help client understand they should con- sider implementing this procedure • Determine the best payroll option for the client (full service, client self-prepare (using software), or a combination • S et th e ex p e c tat io n s w ith th e implementation and activation plan (plan ahead, do not assume payroll can be run within 48 hours of the initial setup) • Run payroll!!! How to Decide Between In-House or Outsourcing Payroll Services Contributed by Stacy Kildal, Advanced Certifed QuickBooks ProAdvisor, www.kildalservices.com These are the questions to ask – they actually apply to both accounting services that are considering ofering payroll services to clients, and to clients that are considering doing payroll themselves. • Determine how comfortable you are in dealing with special payroll issues should they arise: garnishments, deductions, misapplied liability payments, and so on. Because most issues are highly time sensitive, will you have the ability to deal with them quickly? • Will you have easy access to the documents required to handle special payroll situations? • Do you have the experience to know best practices involved in managing payroll issues properly? • If you need to take time of – for whatever reason, planned or unplanned – do you want to carry the burden of making sure payroll is processed on time, all liabilities are paid, and returns fled? • Do you want to be bothered with payroll or would you rather just submit hours and know everything will be taken care of? H ow To Do ___ Beter is a new series. Each month, experts in the designated feld will share their insights and tips. We're kicking of this series with some valuable tips on how you can do payroll beter.