When non-employers think about payroll administration, they generally think about adding up salary or hourly wages and distributing paychecks. But there are many more tedious administrative details when it comes to payroll. Payroll administration includes completing the payroll calculations and deducting the right amount of taxes, producing payroll reports, filing payroll taxes on-time, handing out paychecks or pay stubs to employees, producing and distributing W2s or 1099s, and providing payroll history to employees who are attempting to obtain a mortgage. Most employers who outsource payroll to a payroll service do it to avoid or reduce payroll administration.

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