Payroll service firms handle the outsourcing of the employee compensation process. They handle tasks such as calculating employee pay, disbursing payments to employees, and producing tax forms like W-2s. A significant number of these firms provide self-service interfaces for employees, allowing them to input hours worked, update personal information, and access tax-related details. Moreover, they typically furnish employers with comprehensive reports on employee compensation and labor. Usually, these firms collaborate with either the human resources or accounting departments within a company. However, certain businesses may opt for a more involved approach and oversee their payroll process using specialized software.
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