Payroll Managers, Inc.

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Online Payroll Management - Simply log-in, enter your payroll, print checks and go.

What are the benefits of doing Web-based payroll?
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Doing payroll online is convenient. You have access to your payroll service 7 days a week, 24 hours a day. You can process your payroll on your schedule, from any Internet connection: on the road, from the airport, from the office, or from wherever you happen to be. There are no software programs to download, buy, install or learn to use. Your payroll data is secure and backed up on our servers.

Using Payroll Managers, Inc. on the Web means you are not on your own: we send reminders for payroll tasks and tax payments and filings. Our professional staff tracks payroll regulations and alerts you when a change affects you. As a Payroll Managers, Inc. client, you can contact us via email or phone.

In addition, you and your accountant can share online payroll tasks as the two of you prefer. Some employers will want simply to send their accountant payroll reports periodically. Others might want to enter payroll data and provide employees with pay stubs, but let the accountant review the payroll and do the tax filings. Still others may want the accountant to do the whole job. Using the Web makes all these arrangements possible.

Finally, when you have a question, our customer support representative can look at your data and quickly diagnose what your situation is. No more guessing what a customer might have entered into stand-alone software! Our support team can actually help you with your payroll; they are not limited to describing the mechanics of the software.

How secure is your service?
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We use Secure Socket Layer (SSL) with 128-bit strong encryption to ensure that the information you send us is protected against unauthorized use. Further, our service is unique because it's entirely Web-based. Other companies process payroll by entering information using phone, fax, or mail, which introduces the risk of unauthorized local access, eavesdropping, and unauthorized paper trails.

How will my employees receive their pay each period?
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You have four options:

• You can write a check from your bank account (payable to your employee) for the net amount indicated on the pay stub. You just give the check to your employee along with a copy of the pay stub, which shows all withholding amounts.

• You can print the paycheck and pay stub on pre-printed check stock that is compatible with Microsoft® Money or with QuickBooks®. Give your employee the paycheck and employee pay stub.

• You can print the paycheck and pay stub on VersaCheck Form #1000 blank check stock, which has one check and its accompanying pay stub per sheet. Blank check stock is less expensive than pre-printed stock and is convenient if you print checks for more than one company.

• If you and your employee choose the Direct Deposit option, we will electronically transfer the net amount from your bank account to your employee's bank account. You just give the employee a copy of the pay stub printed on plain paper. Setting up Direct Deposit takes about two weeks and requires enrollment in EFTPS, the federal tax payment system. (Direct Deposit is available free to Basic or Plus subscribers.

Can I pay my employees by Direct Deposit and how does it work?
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Direct Deposit means automatically depositing your employees' net payroll amounts into the employees' bank accounts. Your employees will no longer have to cash checks to get paid.

If you choose Direct Deposit, we automatically deposit your approved paychecks into your employees' accounts on payday, by way of the Electronic Payments Association (NACHA or ACH), a long-established electronic funds transfer system used by banks. No money is ever transmitted over the Internet.

We process your Direct Deposit transactions at 5:00 PM, two banking days before the pay date. You need to ensure that funds are available for payment to your employees by the time processing begins.

It takes about two weeks to set up Direct Deposit. For the first payroll that includes Direct Deposit, we require that you create and approve the payroll at our site 5 days before the payday. If you do not know the exact amounts to be paid, you can pre-fund the payroll 5 days before payday. To pre-fund, estimate and enter the total net amount to be paid by Direct Deposit. The funds must be available in your bank account on the pre-funding day. Two banking days before payday, you create and approve your payroll. On payday, we credit your account for any excess pre-funding amount. We require the 5-day period for approving or pre-funding for the first payroll only.

You need to approve your payroll at least two banking days before the pay date by 5:00 pm Pacific Standard Time. Paychecks approved after the cutoff time will be processed on the next banking day and paid two banking days thereafter. For example, if you choose to pay on a Friday, you must approve payroll by 5:00 pm Pacific Standard Time on Wednesday. If you pay your employee on Monday, you must approve payroll by 5:00 pm PST on the previous Thursday.

We process your Direct Deposit transactions at 5:00 PM two banking days before the pay date. You need to ensure that funds are available for payment to your employees by the time processing begins.

Will you prepare my employees' W-2 forms?
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Yes. We will provide Plus and Basic users with both the employee and employer copies of Form W-2. Plus customers can file federal copies of W-2 forms electronically.

How will you bill me for service fees?
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We will charge our monthly service fee to your credit card, beginning on the day you approve your first paycheck. (If you are taking advantage of a special trial offer, you will be billed after the end of the trial period.) Your card will automatically be charged each month on the same day until you cancel the service. You will be notified by email when your card has been charged.

If you subscribe to Platinum, you may also pay by direct debit of your bank account. We use the Electronic Payments Association (NACHA or ACH) to debit your account. If you choose to pay by ACH, you are still required to enter a credit card number for verification purposes, but your credit card will not be charged.

May I change my service level?
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You may downgrade your service from any level (for example, from Platinum to Gold or from Plus or Silver to Bronze) or upgrade from any level (for example, from Gold to Silver or from Bronze or Silver to Gold) at any time.

How will I provide my payroll information to my accountant at year end?
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Our reports provide you with complete and accurate summaries of all information needed by your accountant, including wages paid to each employee, taxes paid, and taxes owed. Plus, Basic, and Money subscribers can export reports to Microsoft® Excel to email to your accountant. All subscribers can print reports for accountants.

In addition, many customers share online payroll tasks with their accountants. Your account can be set up so your accountant can review your payroll and view reports at any time. Invite your accountant to sign up and enjoy the benefits of our accountant features.

What taxes does an employer owe?
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Employers are responsible for paying federal Social Security tax (FICA) (6.2% of gross wages paid, the same as the amount paid by the employee), federal Medicare tax (1.45%, the same as the amount paid by the employee), and federal unemployment tax (FUTA) (generally 0.8% if you pay all state unemployment taxes on time.) Non-profit organizations are exempt from FUTA.

Employers will owe additional taxes to the state in which they reside, such as state unemployment (SUI) and state disability insurance (SDI) taxes. (Non-profit organizations may be able to choose a reimbursable status for SUI.) In some localities, employers will owe local taxes. If you must pay a local tax agency (for example, a school district, health agency, or city), be sure to read our Setup document, which includes a section on paying local taxes.

How will I know when it is time to file tax forms and make tax payments?
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Payroll Mangers, Inc. will alert you to significant federal and state tax or filing deadlines by sending you an email message and by posting a reminder to your To Do list.

What help does Payroll Mangers, Inc. offer for filling out state and local payroll tax forms?
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For Silver, Gold, or Platinum subscribers, Payroll Mangers, Inc. provides state forms and fills them out, just as we do for the federal forms. You receive an email reminder when a payment or form is due and can access the form filled out and ready to sign. When a state agency requires that you use their original, scannable form, we provide a worksheet that lists the information line by line, so it's easy for you to complete the form.

For Silver, Gold, and Platinum subscribers, Payroll Mangers, Inc. provides a Wage and Tax Summary Report that contains the information you need for state and local tax forms.

What is E-Payment? How does it work?
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E-Payment includes federal EFTPS and state E-payment. EFTPS, the Electronic Federal Tax Payment System, enables you to pay your federal payroll taxes electronically, without the hassle of transcribing data onto paper coupons or delivering payments to your bank. EFTPS saves time and eliminates mistakes.

When you approve an electronic federal tax payment, we transmit a payment record to the IRS that contains the amount of the payment, the date of withdrawal, and your EFTPS account information. The IRS confirms receipt of this file and assigns an EFT confirmation number to it, which we send to you in an email. Then, on the withdrawal date you indicated, the IRS debits your bank account for the tax payment amount.

Sign up and we'll initiate your enrollments in both the Electronic Federal Tax Payment System (EFTPS) and the federal E-Filing system. When your enrollments are complete, we'll notify you, and you can begin using E-Payment and E-Filing for tax payments.

What is E-File? How is it different from E-Payment?
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E-File allows you to file certain quarterly and annual tax returns electronically. This is a separate feature from E-Payment, which allows you to make your tax deposits electronically. Currently, we offer E-Filing for federal forms 941, 940, and W-2 Copy A (which is filed with the Social Security Administration).

We also offer electronic filing of some or all payroll forms in Florida, Illinois, Massachusetts, Minnesota, and Texas. Employers in these states can enroll now.

What are the differences between small business and household payroll services?
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We offer a suite of payroll services providing paycheck calculations and supporting reporting requirements. The reporting and tax depositing requirements of small businesses, however, are much greater than those of households.
• Small businesses must file federal Forms 940 and 941. Households do not file these forms and are instead required to submit Schedule H with Form 1040 at the end of the year.
• For small businesses using our Payroll Basic and Plus services, we can provide email and "To Do" reminders and forms or worksheets for the federal tax deposits you are required to make during the year. Households are not required to make federal tax deposits during the year, so we don't provide such reminders.
• We provide electronic federal tax payment and form filing at no additional charge to small businesses using our Basic or Plus services. These electronic services are not included in our household price.
• Plus supports payments to contractors; our household service does not support paying contractors.
• Our small business services are available in all states and the District of Columbia. Our household service is currently available in most states.

I have only one employee; is your service right for me?
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Yes! We are targeted at very small businesses like yours, so you can spend your time on your business and not on compliance with payroll law. When you reach 50 employees, we'll begin reminding you that our system is designed for up to 50 employees. (Our Plus service also allows you to pay contractors.) If you reach 51 active employees, we'll help you move to our larger service so you can get the features needed by larger companies.

What payroll records should I keep? How long should I keep them?
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State and federal and sometimes even local city laws impose numerous record-keeping requirements on employers, including household employers. For example, the federal Fair Labor Standards Act requires employers to retain, for a minimum of 3 years, payroll records that include each employee's name, address, and occupation; hours worked each day and week; wages paid and date of payment; amounts earned as straight-time pay and overtime; and any deductions. You must keep records of Income Tax Withholding, FICA and FUTA taxes for four years after the due date of the tax or the date the tax is paid, whichever is later. State unemployment laws typically require employers to retain, for a minimum of 4 years, records of each employee's work status, pay for each pay period, and when and where services were performed.

You may want to retain household payroll records for up to 15 years to support your own individual federal income tax filings. The IRS has 3 years to assess an individual income tax return and an additional 10 years to begin collection proceedings, after which payment refunds can be made for up to 2 additional years.

We can help you comply with these record-keeping requirements. You can print or save electronically all of the data we use to process your payroll. Your payroll data is available to you on our website for at least one year after the end of the tax year in which it is collected. You should make your own arrangements to retain the data after that time.