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Payroll Sales Pro, Issue #2:Voluntary vs. Involuntary Deductions and Gross to Net Pay
January 11, 2016
January 11, 2016
Monday Morning Pick Me Up
Inspiration and Information to start your week right
"It is not enough to be busy; so are the ants. The question is: What are we busy about?"
--Henry David Thoreau
Payroll Talking Points
When you get an invoice in the Merchant Services biz, what that means in most cases is that your client is digging up statements for a certain time period, perhaps two to three months, so you can get a good idea of what they are paying. That can be time consuming and take some real effort.
Getting billing for payroll requires just ONE piece of paper—the payroll invoice. This is something the business owner can lay his hands on very quickly. Even if the company has a payroll clerk or some kind of accounting person doing the payroll, you can be assured that the business owner is personally on top of payroll costs since the cost of paying employees is always his largest expense—he’ll see the reporting from his current payroll provider usually with little effort.
Once you have the invoice, just send it to us, and we’ll do the rest. When it closes, you get paid for the life of the client.
Paypros can typically save them 10-20% over a national payroll company
Paypros gives each client their own dedicated customer service rep--your client knows their rep and their rep knows the ins and outs of their business payroll needs.For more detailed payroll Talking Points tips and information, see Payroll Tips and Techniques
Adding Voluntary Deductions: A Benefit and Selling Feature
PayPros gives your clients the abiitly to add to their voluntary deductucitons, which not all vendors offer. Because PayPros has one of the more advanced systems on the market, employees can have automatic payroll deductions for car payments, mortgage payments or other bills. And, though some larger payroll companies also offer additional deductions—but at an additional cost—the fact that PayPros has no additional charges for this makes it an attractive feature to prospective clients.
A quick primer on Voluntary vs. Involuntary Deductions and Gross to Net Pay
One of the most basic functions of payroll is taking “gross pay” and coming up with the “net” amount or take home pay that appears on the pay check.
Gross pay is what you earn in a given time period. For example, if your Gross pay for a particular period is $3,000.00 and you are a Contractor or a 1099, you get paid $3,000.00 and it is then your responsibility to pay your state and local payroll taxes. But if you are an employee or W-2 worker, your employer does it for you by “deducting” from you gross pay.
There are two types of deductions: 1) Involuntary 2) Voluntary
Involuntary deductions are taxes and other charges mandated by the government.
Voluntary deductions are charges that the employee chooses: premiums for benefits and 401(k) contributions—and in the PayPros case, any additional deductions the employee chooses.
In the example below, the employer comes up with a net of $1,834 after a few deductions from the $3,000 gross.
In the rectangle are the “involuntary” deductions: Federal Income Tax, State Income Tax, Social Security and Medicare. In most states you would also have SUI (pronounced “sue-ee”) or State Unemployment Insurance. Employers are expected to make contributions to the unemployment insurance fund on behalf of their employees.
Outside of the rectangle are the voluntary deductions that employees choose: buying insurance, contributing to a retirement plan (usually a 401(k)) and even making contributions to a charitable organization.
When your prospective client compares payroll options, the ability to add these Voluntary deductions-- at no additonal cost to employer or employee—can help set PayPros apart.
Call us at (888) 693-4611 for more information.
Monday Morning Quarterback
Tips to help you self-audit your sales process
If you don’t have much energy, you won’t have many sales. Increasing your energy and focus can help not only with sales, but in all areas of your life.
Researchers at the University of Nottingham recently published findings on energy and self-control. How much energy and self-control you have throughout the day is partially dependent on how you start the day. It does not matter if you are a “morning person” or not, what you do first thing in the morning matters.
Here are some of the findings:#1 Start with exercise
Researchers at the University of Bristol found that people who exercise during the workday have more energy and a more positive outlook, which are both critical to getting things done. By exercising first thing in the morning, you’ll be sure to get your workout in, and your energy levels will be improved all day.
#2 But drink some lemon water first
Drinking lemon water first thing in the morning increases both your physical and mental energy by improving nutrient absorption in your stomach. Drink it first thing in the morning on an empty stomach to ensure full absorption.
#3 No screen time until breakfast
When you dive straight into e-mails, texts, and Facebook, you lose focus and your morning succumbs to the wants and needs of other people. It’s much healthier to take those precious first moments of the day to do something relaxing that sets a calm, positive tone for your day. Jumping right into electronics has the opposite effect—it’s a frantic way to start your day. Exercising, meditating, or even watching the birds out the window are all great ways to start the day.
#4 Eat breakfast
A healthy breakfast gives you energy, improves your short-term memory, and helps you to concentrate more intensely and for longer periods. People who eat breakfast are less likely to be obese, they have more stable blood-sugar levels, and they tend to be less hungry over the course of the day.
#5 Set goals for the day
Research shows that having concrete goals is correlated with huge increases in confidence and feelings of control. Setting goals specific to the day puts everything into motion. Narrow your goals down to a few achievable ones that can easily be broken down into steps. You’re ready to get things done!
Think you’re ready to earn Residual Commission for the life of your clients as a Payroll Referral Rep? Contact us by calling (888) 693-4611 or filling out the form at Best Business Payroll--How to Make Residual Commission We’ll be glad to answer any questions you may have and look forward to helping you become successful in any way we can.
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