When a new client partners with Diversified Employee Solutions, one of the first actions we take on is the process of running the first payroll. This crucial step involves thorough coordination between the HR account manager, the client, and the HR team. By following a structured approach and ensuring complete cooperation, the payroll process can proceed without hindrance.
Needs Assessment and Expectation Review
Once the contract or agreement is signed, the HR account manager and team schedule a meeting with the client. During this meeting, the team aims to gain a comprehensive understanding of the client’s needs, priorities, and expectations. This can include high priority items, such as an employee handbook update or a verification of I-9 compliance. Our expert HR team will then create an appropriate plan of action. Clear and effective communication is vital at this stage to ensure that all requirements are accurately conveyed and understood.
Employee Information and Onboarding
In order to initiate the payroll process for a client, it is essential to gather up-to-date employee information. For PEO (Professional Employer Organization) clients, every employee is required to complete a new employee onboarding file. This ensures that the documents are compliant and that the I-9 form is completed under the name of the PEO. This can include:
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- I-9
- E-Verify
- Tax Forms
- Direct Deposit
- Proprietary Documents
- Work Opportunity Tax Credit
- Demographic Profile
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Additionally, there may be other forms or proprietary documents that the client wishes to include in the onboarding file. The HR team dedicates time to review and add these documents to the onboarding process.
However, for ASO (Administrative Services Organization) clients, the documentation requirements are relatively minimal. Only a few key documents are needed to establish the employee file. The documents needed for an ASO client are:
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- Tax forms
- Direct deposit forms and information.
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The pace at which this onboarding process proceeds depends entirely on the client’s cooperation. Smooth and timely progress can be achieved when the client actively collaborates and provides the necessary information and support.
Entry, Approval, and Auditing
Once all employee files are completed, the HR team proceeds to enter the employee information into the PRO software system that DES employs. Our team meticulously reviews the details and approves the I-9 forms. Subsequently, the I-9 forms are e-verified, and all the relevant documents are uploaded to the respective employee profiles. The payroll team then conducts a comprehensive audit of the entered information to ensure accuracy and completeness.
Benefits Enrollment (if applicable)
If the client has opted for benefits enrollment, the same process of data entry and auditing is applied as soon as the necessary information is received. In the case of enrolling in group benefits, our designated benefits expert distributes electronic benefit files to the employees. The employees complete the necessary forms, and the information is then accurately entered and uploaded into the PRO system.
Accounting Requirements
From the accounting perspective, various information also is required from the client to ensure a seamless payroll setup and this is also dependent on the type of client, as an ASO or PEO client requires different forms for execution of payroll & tax services. This includes account information, tax details, addresses, billing information, workers’ compensation policies, and manual codes, among other pertinent data.
If you are an ASO client, we will need:
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- EIN (Tax ID) and POA (Power of Attorney) forms for the IRS
- State account numbers for withholding and POA for each
- State unemployment numbers and rate and POA for each
- Any local taxation account numbers and POA
- Deposit frequency for all tax accounts
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For a PEO client, as we assume more responsibility, we only require a few key documents.
PEO:
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- EIN (Tax ID)
- State unemployment number and rate and POA
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While the timeframe for completion may vary depending on the complexity and level of client cooperation, Diversified Employee Solutions strives to ensure an efficient and satisfactory experience for all clients. We take our clients from point A to point B with the utmost attention to detail and care.
Frequently Asked Questions
What is the first step when partnering with Diversified Employee Solutions?
When partnering with Diversified Employee Solutions, one of the first actions we take is to run the first payroll. This step involves coordination between the HR account manager, the client, and the HR team.
What happens during the needs assessment and expectation review?
After signing the contract or agreement, our HR account manager and team schedule a meeting with the client to understand their needs, priorities, and expectations. This includes important items such as employee handbook updates or I-9 compliance verification. Clear communication ensures accurate understanding of requirements.
What employee information is required for the payroll process?
For PEO clients, every employee needs to complete a new employee onboarding file, including forms such as I-9, E-Verify, tax forms, direct deposit, proprietary documents, work opportunity tax credit, and demographic profile. ASO clients have minimal requirements, including tax forms and direct deposit forms.
How is the entered employee information reviewed for accuracy and completeness?
Once employee files are completed, our HR team enters the information into the PRO software system, meticulously reviews details, approves I-9 forms, e-verifies them, and uploads relevant documents to employee profiles. A comprehensive audit is conducted by the payroll team to ensure accuracy and completeness.
Is benefits enrollment available, and how does it work?
If the client opts for benefits enrollment, the same data entry and auditing process is applied. Our benefits expert distributes electronic benefit files to employees for group benefits enrollment. After completing necessary forms, the information is accurately entered and uploaded into the PRO system.
What accounting requirements are needed for seamless payroll setup?
From an accounting perspective, various information is required, depending on whether the client is an ASO or PEO client. For ASO clients, we need EIN (Tax ID) and POA forms for the IRS, state account numbers for withholding and POA, state unemployment numbers and rate with POA, any local taxation account numbers with POA, and deposit frequency for all tax accounts. PEO clients have fewer requirements, including EIN (Tax ID), state unemployment number and rate with POA.
How long does the process take?
The timeframe for completion varies based on the complexity and client cooperation level.
