I am adding two new small New Jersey organization payroll services this week so it was appropriate to review and update my generic payroll service agreement.
This confirms that I offered to establish and administer payroll services for xxxxxxxxxxx.
Payroll service includes the following:
Timing:
The service will start within 1 to 2 business days of our agreement.
Payroll Schedule:
Your choice of weekly, bi-weekly, monthly, twice a month, or as manually as requested.
Pricing:
$xx per week. This includes all my services, filing and technology fees and but obviously not the amount of payroll, taxes and benefit costs that you will authorize seperately.
Assumes 1-3 employees, fixed weekly payroll, monthly benefits and expense reimbursement.
The pricing may be renegotiated for any number of reasons when employer, market or legal conditions change but is otherwise expected to remain stable.
Filings Included:
Filing of required New Jersey New Hire Report
New Jersey Employer Report of Wages Paid (NJ WR-30)
New Jersey Employer’s Quarterly Report (NJ-927)
New Jersey Employer’s Quarterly Report for Weekly Filers (NJ-927W)
New Jersey Submitter Form NJ-ERW2-S
New Jersey Annual Withholding Reconciliation (NJ-W-3)
New Jersey Employer’s Quarterly Report (NJ-927)
New Jersey Employer’s Quarterly Report for Weekly Filers (NJ-927W)
New Jersey Submitter Form NJ-ERW2-S
New Jersey Annual Withholding Reconciliation (NJ-W-3)
Response to court orders for wage withholding
Federal forms W2 and W3 and Form 1099 for independent contractors
Employees living or working in other states may have additional filing requirements that are not included above but will be negotiated and offered as necessary.
Employee Benefits:
Workers compensation insurance (anticipated)
Health insurance on a pre-tax basis (anticipated)
Accountable Employee Expense Reimbursement (anticipated)
Other employer paid or voluntary employee paid benefits are not anticipated at startup but may be added later.
Submissions, records and confirmations:
Routine non-secure communications may be via text message or email
A secure portal is used for sensitive communications
A separate secure portal is available for the employer and each individual employee.
Payment method:
Employee paycheck deposits, tax payment, payroll administration fees, and employee benefits payments are made via ACH from the employer’s bank account.
Operational provisions:
I retain the right to choose the banking, benefits and tax technology platforms and providers that offer the best fit for this engagement. If I elect to change platforms, I am responsible for smooth transitioning. We do not control and cannot be solely responsible for the actions of third party tax administrators, benefits providers, insurance companies and technology platforms.
This engagement may include advisory or coaching services to individual employees and their dependents related to compensation planning and employee benefits, at their request, that are separate and distinct to the accounting and advisory services to the employer.
This engagement overlaps employer banking services that may be addressed seperately. It is important to have an established procedure and protocol to ensure that employer funds are available for payroll expenses.
Contractual provisions:
The normal accounting services engagement agreement applies to payroll administration services.
Additionally, each employee of the organization and their dependents who may request individual service has separate rights to privacy related to our communications on personal financial and benefits planning.
My duel role of providing professional payroll administration service to the organization and financial/benefits advising or coaching to an employee may create a conflict of interest that is addressed in the engagement agreement.
Service may be terminated by either party at any time. Reasonable provisions will be negotiated for the transition of records and final filings. I might not have the practical capability to complete tax filings after the date of termination of the payroll service agreement.