Ask HN: US Payroll, employee benefits
I want to learn about US payroll, employee benefits (Health insurance, 401 (K)) etc from an entrepreneur /employer perspective. Is there a good book or blog that will help me get started?
4 comments
I don't have any book recommendations, but I can tell you it is best to utilize a service to manage it for you. There are a lot of little details to know and follow.
Overall it isn't super difficult, but takes time to manage it correctly, and if you cross state lines (e.g. have employees in more than 1 state) it can get more complex. And in states with state income tax it gets more complex still, mostly in the number of filings you have to make. I am by far not an expert in this regards, but I did try and manage it internally for awhile, but by the time you are done managing the payroll process, direct deposits, hourly employees, insurance deductions, reimbursements etc it is so much cheaper to pay for a monthly service.
You might check out blogs from companies like Xero and Freshbooks, Intuit etc and see if they have some details around what you are looking for. Also I think zane benefits blog might have some details too.
Overall it isn't super difficult, but takes time to manage it correctly, and if you cross state lines (e.g. have employees in more than 1 state) it can get more complex. And in states with state income tax it gets more complex still, mostly in the number of filings you have to make. I am by far not an expert in this regards, but I did try and manage it internally for awhile, but by the time you are done managing the payroll process, direct deposits, hourly employees, insurance deductions, reimbursements etc it is so much cheaper to pay for a monthly service.
You might check out blogs from companies like Xero and Freshbooks, Intuit etc and see if they have some details around what you are looking for. Also I think zane benefits blog might have some details too.
Thanks for the suggestion! We have currently outsourced to someone but I am afraid they wont be able to handle our scale soon. I am currently reviewing zenefits and Zenpayroll, but thought will be worthwhile to understand the details before making a decision.
Zenpayroll can handle pretty significant size, but if you are concerned and want more proven capability and scale you can always use a company like ADP or PayChex. They handle payroll for some of the largest US companies, and they can handle filing the payroll statements in all states, and the IRS quarterly forms and taxes etc. Plus they have teams that help with the benefits management and open enrollment periods etc.
If you are < 300 people though, I'd say Zenpayroll or any of those comparable services would likely be sufficient, at least for most common situations. Also, just an FYI, I brought ADP into a company about 10 years ago and we did some integration to them to automate timecard submittal etc. but anyway, ADP really wasn't that expensive in the end, for ~300 person company we were paying like $40-$45k/year for benefits and payroll management. IMO that is cheap, as all we had to do is make sure the hours and benefit enrollments were validated and submitted on time.
If you are < 300 people though, I'd say Zenpayroll or any of those comparable services would likely be sufficient, at least for most common situations. Also, just an FYI, I brought ADP into a company about 10 years ago and we did some integration to them to automate timecard submittal etc. but anyway, ADP really wasn't that expensive in the end, for ~300 person company we were paying like $40-$45k/year for benefits and payroll management. IMO that is cheap, as all we had to do is make sure the hours and benefit enrollments were validated and submitted on time.
[deleted]