Payroll Balance Forward?

by Ali
(Laguna Hills)

As a payroll service company , if we get the payroll service right now, do we need a beginning balance from previous payroll company?

Comments for Payroll Balance Forward?

Average Rating starstarstarstarstar

Click here to add your own comments

Definitely Bring the Balance Forward
by: Best Business Payroll

Yes, you need year-to-date numbers because the new payroll company will need to produce W-2's at the end of the year. If you have not been running their payroll since January 1st, you will need all the information since then.

In addition, you may need quarterly totals. If you start the payroll on a quarter break (April 1st, July 1st or October 1st) you will only need annual totals. But if you are starting mid quarter, you will also need quarter-to-date information in terms of any quarterly payments (state and federal payroll taxes, State Unemployment Insurance or Federal Unemployment Insurance) that the other vendor has swept from the company's account but has not paid since the beginning of the quarter.These need to be refunded back to the client by the first payroll company. Then you must take that money, sweep the money out of the account and pay what is owed going forward.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Payroll FAQ.