While there is no technical definition for the term epayroll, some people use the term to describe a web-based, or online, payroll process. A business can outsource, or partially outsource, payroll to online providers that calculate wages and deductions, and pay employees through direct deposit. A full-service epayroll provider will also handle all of the tax management on behalf of a business, including paying and depositing federal, state and local taxes, and working with the IRS if any issues arise.
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