While processing payroll in-house can be painful and time-consuming, the possibility of outsourcing these services is a great boon to many companies. These service providers give businesses the right solution, often tailor-made to suit particular needs. They say their solutions make any business more economically viable by reorganizing and supervising its administrative needs vis-à-vis the employee, including payroll, benefits, tax withholding and compliance processing.

Once the onus of payroll services is placed on the shoulders of these payroll companies, the business itself can actually focus its energies on expanding and building its core competencies, so that bottom lines can see a major positive difference.

Moreover, the transmittal of payroll taxes and filing income tax returns with federal, state and local taxing authorities are not time- or cost-effective. Whereas if the electronic filing and payment service for federal, state and local taxing authorities is availed of, then timely filing and payroll requirement doesn’t become burdensome.

Furthermore, while taking advantage of payroll services, the customer can choose the means of data entry that is most convenient, such as phone, fax, email or entry directly through the Internet. Payroll information can be accessed from anywhere via the Internet 24/7, with the help of a protected login ID and password. The employee information can even be altered or printed, as per requirements.

There are companies that provide payroll services for non-sourced workers, previous employees, and contract workers who are not considered independent contractors. Payroll services in that case will provide an all-inclusive collection of benefits complete with medical plans, retirement, tax plans and life insurance, among other things.

This type of payroll service management for contractors is customized according to the needs of skilled contractors, presenting direct deposit and tax compliance plans on a case-by-case basis, health and dental coverage, retirement plans, dependant care plans before tax, worker’s compensation, unemployment insurance, and an hour’s worth of free financial and tax consultation, electronic timecards and weekly paychecks, to name a few.

Payroll processing solutions and payroll tax return preparation are available to help businesses relieve their payroll processing woes and assist with tax compliance procedures.

Payroll processing companies offer a tax pay line service through which the customer will receive payroll checks with wage-statements for each pay period. They also provide made-to-order payroll reports. The customer’s payroll taxes are automatically debited from the account and forwarded to the government. Federal, state and local tax returns are filed with payment, and workers’ compensation returns are also taken care of with payment. W-2’s, W-3’s, and local and state annual reconciliations are made out, and customary updates on changes in employment rules are ensured.

Some payroll processing service companies allow the customer to design the service by picking the options that best fit the bill. They allow add-on services such as direct deposit, laser signatures, choosing only relevant reports, 1099 processing, wage and labor research, handling of tax notices and business planning, retirement and financial planting among many others. These may or may not require additional costs.

Additionally, payroll-processing services may include other economical options to replace the in-house payroll department. The expensive training and maintenance of payroll staff can be eliminated. The services include providing payroll checks with salary statements or vouchers from which to write out checks, payroll reports that are easily read, and federal, state and local returns kept ready for signature and payment. Additionally, workers’ compensation reports are done upon request, prepared W-2s sent out with envelopes, and so on.

In some instances, the service provided for payroll processing is only just a phone call away to the local customer service agent. Each pay period, the pay checks and reports arrive at the company’s doorstep and funds are promptly deposited in the bank accounts of the employees. Overnight delivery of payroll reports is available if specifically requested. Most payroll processing service providers are flexible and adapt to any business. Generally, they will also provide the following services: they complete tax filing, give signed and sealed payroll checks, and a maximum of three direct deposit accounts for every employee. All this can be done at no extra cost.

The South Carolina State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Department of Revenue
P.O. Box 125
Columbia, SC 29214
(803) 898-5300
www.sctax.org

South Carolina allows you to use the Federal W-4 form to calculate state income tax withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In South Carolina cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In South Carolina supplemental wages are taxed at a 7% flat rate.

You must file your South Carolina State W-2s by magnetic media if you are have more than 25 employees and are required to file your federal W-2s by magnetic media.

The South Carolina State Unemployment Insurance Agency is:

Employment Security Commission
1550 Gadsden St.
P.O. Box 995
Columbia, SC 29201
(803) 737-3070
www.sces.org/ui/index.htm

The State of South Carolina taxable wage base for unemployment purposes is wages up to $7,000.00.

South Carolina requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in South Carolina for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The South Carolina State Agency charged with enforcing the state wage and hour laws is:

Department of Labor, Licensing and Regulations
Office of Labor Services
P.O. Box 11329
3600 Forest Drive
Columbia, SC 29211-1329
(803) 734-4295
www.llr.state.sc.us/

There is no provision for minimum wage in the State of South Carolina.

There is also no general provision in South Carolina State Law covering paying overtime in a non-FLSA covered employer.

South Carolina State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

* Employee's name
* Employee's address
* Employee's social security number
* Employer's name
* Employers address
* Employer's Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.
The information can be sent as a W4 or equivalent by mail, fax or electronically.
There is a $25.00 penalty for a second offense late report and $500 for conspiracy in South Carolina.

The South Carolina new hire-reporting agency can be reached at 888-454-5294 or 803-898-9235 or on the web at www.state.sc.us/dss/csed/newhire.htm

South Carolina does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.

South Carolina requires the following information on an employee's pay stub:

* Gross and Net Earnings
* itemized deductions

The South Carolina agency charged with enforcing Child Support Orders and laws is:

Child Support Enforcement Division
Department of Social Services
P.O. Box 1469
Columbia, SC 29202-1469
(800) 768-5858
www.state.sc.us/dss/csed/

South Carolina has the following provisions for child support deductions:

* When to start Withholding? Next pay period after service.

* When to send Payment? Within 7 days of Payday.

* When to send Termination Notice? Within 20 days of termination.

* Maximum Administrative Fee? $3 per payment.

* Withholding Limits? Federal Rules under CCPA.

Please note that this article is not updated for changes that can and will happen from time to time.