PayCycle, a popular online payroll service for small businesses, recently added a new capability to its PayCycle basic program. The new service allows small businesses to electronically file 1099-MISC, 940 and 941 forms for a flat fee of $20.
The inexpensive e-filing service means that small businesses no longer need to purchase expensive 1099 software and pre-printed forms costing to prepare income tax documents. With the new 1099 e-filing feature from PayCycle, small businesses can create, electronically file, and print 1099-MISC forms for vendors and independent contractors. With the new 940 and 941 e-filing feature, PayCycle automatically completes quarterly and annual federal tax forms that can also be filed online.
In September 2002 the U.S. Internal Revenue Service set up a XML Developers’ Forum to provide information and technical guidance for software developers interested in developing software for the new “Employment Tax e-file System in XML.” PayCycle utilizes these new XML standards to reduce payroll paperwork and enable direct electronic interaction with small business employers. The company already offers direct deposit, electronic federal tax payment services, and electronic W-2 filings through its standard online payroll processing service, dubbed PayCycle Basic.
PayCycle Basic guarantees accurate paycheck calculations for small businesses — including all federal, state and local taxes. To prepare your payroll, simply enter the number of hours worked by your employees and print out their paystubs, then print your paychecks and prepare any applicable direct deposits for employees. Of course, PayCycle also support several other payment methods besides hourly pay, including straight salary, commissions, bonuses, and general reimbursements, among others.
Each time you log in to PayCycle’s secure server, you receive your personal To Do list, which guides you through each payroll task, from initial setup of your organization and employees, to paying employees, as well as preparing all federal filings and deposits throughout the year. In addition, PayCycle’s e-mail reminders are designed to keep you on top of your payroll and federal tax deadlines.
If this sounds too good to be true, you can use PayCycle free for a full month and see for yourself just how easy it could be to process your small business’s payroll. Then, if you decide to continue using PayCycle, pricing starts at $19.99 a month for processing up to five employees. (Add $0.99 per month for each additional employee.) You only pay this fee once a month — no matter how many times your small business runs its payroll within any particular month. There are no hidden fees for processing direct deposits, quarterly or year-end form filings (including W-2’s), or customer service for that matter.
Unlike some other payroll services, PayCycle does not impound funds for taxes each payroll — you maintain control of your funds. PayCycle tells you exactly what and when to pay the IRS by sending you a friendly e-mail reminder. Add on PayCycle’s new 1099 service for another $20 and you can electronically file all your 1099 forms, making tax time a breeze.
Founded in 1999, PayCycle is a member of the American Payroll Association, the professional society for payroll professionals. PayCycle is one of the nation’s leading online, small business payroll service providers. The company serves customers in all 50 states.