Payroll Services Engagement Letter

February 4th, 2012

 

[FIRST NAME] [LAST NAME]
[COMPANY]
[ADDRESS]
[CITY], [STATE] [ZIP]

Tel: [TELEPHONE]
Fax: [FAX]
Email: [EMAIL]

 

Dear [FIRST NAME] [LAST NAME]:

We appreciate the opportunity to provide payroll services to [COMPANY]. To ensure an understanding between us, this letter sets forth the terms of our engagement as well as the nature and limitations of our services to you.

Payroll Calculation Services

We will provide access to a secure online payroll services account which will allow you to:

Our Responsibility

After we receive your acceptance and payment for the first month of service, we will provide access to a secure online account to set up your payroll information.

Upon notification from you that you have completed your initial set-up, we will review the information you have entered and tell you if any amounts or settings appear unusual or in error. However, we will not audit your information or confirm it is correct.

If requested, we will be available at a previously scheduled time to provide telephone or (local area only) on-site support when you run your first payroll or make your first set of quarterly tax payments. We will also be available by phone or email to answer other questions as they come up.

We will send reminders to the email account you provided ([EMAIL]), informing you of upcoming payrolls and the amount and due date of tax payments and filings. If you want us to run payroll, do payroll tax or other filings or make tax payments for you, we may be able to do that; however, this agreement does not include those services.

Your Responsibility

You will maintain a working internet connection with current browser software and update this as needed to access your account.

You will reset any default passwords we create when we set up your account and protect the security of your online login and password information. You will not hold us responsible for any fraud, theft, errors, or other acts which occur as a result of access to your account using your login and password, whether or not you authorized that access.

Unless otherwise arranged, you will enter your current year-to-date information and confirm all balances and other information are correct, including employer and employee tax ID’s, bank account information, year-to-date payroll and tax payments, frequency of tax payments, and other information needed to correctly process payroll, compute tax liabilities or make electronic payments and filings. You will do this prior to running your first payroll or processing any tax forms or payments, and reimburse us for any fees we are charged to correct information after a payroll or tax payment has been processed.

You will update your contact information as needed and promptly respond to any requests for information to set up electronic filings and payments, or to notifications regarding insufficient funds or other items which require action on your part.

You will make tax payments or payroll tax filings as needed and input payroll information for each payroll. You will pay employees and subcontractors by direct deposit or paper checks.

You will maintain sufficient funds in your bank account to cover payroll expenses and related tax liabilities. You will be charged an exceptions fee if there are insufficient funds in your account when payroll or payroll taxes are debited. If any invoice payment is returned by your bank, a $25.00 returned check fee will apply.

Our Fees

Based on the information you provided, you will be running payroll for 5 employee(s) and contractor(s) in 1 state(s), beginning in March.

Our fee for providing access to this service is $40.00 per month. Please include payment of $40.00 with your signed copy of this engagement letter. After your first month, an invoice will be sent approximately twenty (20) days in advance of each new month to the email address you provided, which will include any adjustments based on changes during the prior month. Payment is due in full within ten (10 days) of the invoice date.

Billing adjustments will be based on:

Per employee or subcontractor (and any applicable per-state) fees apply for all active employees or subcontractors, whether or not you pay them during that month. Per-state fees also apply for any month in which tax calculations, payroll filings or tax payments are made for that state, even if all employees in that state were inactive. Per timeclock user fees apply to all timeclock users, whether or not they clock in or are paid during the month. The “pay as you go” worker‘s compensation premium payments fee, once started, applies until the option is cancelled.

These fees are subject to change. You will be notified at least thirty (30) days in advance of any fee change.

If you use the system to pay subcontractors, it will track the payments for you. However, an annual fee applies to create and file 1099‘s electronically. You will be notified of the fee each year and may ‘opt out’ and create and file paper forms yourself.

Payments

At this time, payment may only be made by check payable to Jo Landers and mailed to 27 Howard Ave, Easthampton, MA 01027. Payments must be in US dollars. Payment by PayPal may be added at a future date; you will be notified if this becomes available. Automatic credit card billing is not available.

You will be notified by email to the current address on record for your account if any payment has not been received by the due date. Your account access may be suspended if any invoice remains unpaid on the first of the month for which the invoice applies. Access will be reinstated upon receipt of payment in full, including any unpaid exceptions fees or other charges. Please note that it may take up to five (5) business days to reinstate a suspended account.

Services not Provided

We will not audit or verify the information that you provide to us or enter into your payroll account. If an amount appears unusual, we will call it to your attention during the initial set-up. However, we are not responsible for the detection of errors, irregularities, theft, fraud or illegal acts. We do not provide legal services and can not act on your behalf with the IRS, state, or any other entity.

We do not provide payroll checks. You may pay your employees using direct deposit, handwrite checks, or download payroll data into your bookkeeping software and print checks.

Unless otherwise arranged, we will not update payroll tax or employee information, process your payroll, make tax payments, or file tax forms for you.

Approvals

We are pleased to have you as a payroll client and hope that this will begin a long and pleasant association. Each of us, however, retains the right to terminate this engagement at any time.

Upon termination, account access will be suspended and a final invoice for the current month and any other unpaid amounts will be sent to you. It is your responsibility to download payroll information for your records prior to terminating this agreement.

Please sign and date a copy of this letter and mail it to 27 Howard Ave, Easthampton, MA 01027 with a check made out to Jo Landers in the amount of $40.00 to acknowledge your agreement with the terms of this engagement. Include a completed Employer Information Sheet (included in the Payroll Services Setup Packet with the pdf of this letter) so we can begin setting up your account.

This initial fee is based on the information you provided. Later invoices will be adjusted as necessary to reflect the actual number of active employees or subcontractors and states during the prior month.

Sincerely,

Jo Landers

 

Acknowledged:


__________________________________________
[FIRST NAME] [LAST NAME]


____________________________
Date

[COMPANY]
[ADDRESS]
[CITY], [STATE] [ZIP]

Tel: [TELEPHONE]
Fax: [FAX]
Email: [EMAIL]