Handle local taxes on your Pennsylvania payroll

Pennsylvania's Act 511 law allows municipalities to set their own taxes. Many municipalities charge an earned income tax and a local services tax to employees who work in Pennsylvania. Employers in Pennsylvania must register with their Earned Income Tax Administrator and withhold the appropriate local taxes. Collecting these taxes and getting them to the right tax bureau can be a headache for small companies, since employees may reside in different municipalities. Payroll services in Pennsylvania should have a good understanding of local taxes.

I recommend: Net Pay was designed around Pennsylvania local tax. They developed a method to analyze employee demographics and transmit withholdings to the proper bureau. Not only do they process payroll with the proper local withholding, but they transmit to all bureaus and print returns.

Get a one-stop solution

Are your accounting and human resources tasks taking a lot of your time? Payroll companies in Pennsylvania can help. Look for payroll companies in PA who offer additional services in bookkeeping, accounting and/or human resources.

I recommend: Rotz and Stonesifer is an accounting firm that offers human resources, tax and payroll services. My Accounting Assistant includes payroll and bookkeeping services for small businesses. Express Data Systems not only provides payroll services but offers expert help on legal and human resource issues, and customizable job descriptions and policy templates are available as well.

Integrate a timeclock

A timeclock can help you reduce tardiness and manage your employee reporting more easily

I recommend: Look for payroll companies in PA that can recommend and integrate a time clock. Accupay Timekeeping interfaces with Accupay's payroll processing. Employees can clock in and out by using a PIN, social security number or badge. Remote employees can clock in and out on their computers with Web Clock. Netpay is an authorized dealer of Lathem Time Products time clocks that connect via modem or Internet.

Look for extra services with payroll companies in PA

Even if you're using Pennsylvania payroll outsourcing, you may still have to deal with time-consuming tasks like stuffing envelopes, transmitting taxes and reconciling your accounts. Look for companies that can do the work for you.

I recommend: Besides payroll services, Dial-A-Check can print signatures, stuff and seal envelopes and print time card labels. Payroll Service Solutions has a service called Chx-OnUs, where payroll checks are written from their bank account each payroll. The payroll amount is deducted from your bank account in a lump sum. There is no need to reconcile each paycheck, just make one net payroll entry.