Frequently Asked Questions

If you have a specific question or concern, please read through our frequently asked questions below to find helpful information. If you don't see an answer to your question, our team will be happy to hear from you. Send us an email.

General Questions

I don't want paper reports. Is there an online option?

Yes, Paysmart supports green initiatives and offers other options for receiving payroll reports. You can access them on our secure online portal or via e-mail.

Do I have to pay overtime?

Overtime must be paid to nonexempt employees that work more than 40 hours in a work week. A work week is seven consecutive days such as Monday-Sunday and is not contingent upon the length of the pay period. Overtime is only for hours worked, so if an employee takes a vacation or has a holiday in a work week, they may not qualify for overtime.  For example, if an employee reports 43 hours but part of that was an 8 hour holiday, it is all straight time.  If they work 43 hours plus have an 8 hour holiday, there are 3 hours of overtime.  Overtime is calculated at time and a half.

Tax Questions

Why is my tax impound more in January than it was in December?

The Federal and SC State unemployment taxes are based on the first $7,000 and $9,000 for 2015 and $9,500 for 2016 of wages earned per employee. These calculations start over every year in January, causing the employer taxes to be higher until each employee earns the required amount.

How do my employees know what they are claiming on their W-4s?

Each employee’s check stub has the filing status and the number of exemptions claimed on the W-4 they submitted.

How do my employees know how much to claim on their W-4?

There are many factors that impact what is best for an employee to claim on their W-4. We recommend the employee consult their tax preparer; follow the instructions on the W-4. 

Why weren’t any Federal taxes withheld from my employees’ checks?

The amount of Federal withholding on an employee’s check is dependent upon what is claimed on the form W-4. An employee needs to make a minimum amount of gross wages before any Federal tax is withheld. 

When are my W-2s due to my employees?

W-2s must be post marked January 31.

Do I have to keep forms W-4 and I-9?

Yes, forms W-4 and I-9 must be kept for your employees.

Do I need a new W-4 every year?

No, a new W-4 is not required ever year.  A new W-4 is required if any changes in withholding are requested.

Payroll Questions

What do I do if an employee never picks up their pay check?

Uncollected payroll checks should be turned over to the Unclaimed Funds Division of your state.

Do bank holidays affect my payroll processing?

If a bank holiday is the same day as a direct deposit, the check date will have to be changed. Processing will be moved back one business day for bank holidays.

If my employee has a wage garnishment do I have to deduct it from their check?

Yes. Wage garnishments are legally required to be deducted from an employee’s check until written release is received. Employers can be held responsible for ignoring a wage garnishment.

If I have direct deposit, when do the funds have to be available?

Direct deposit funds must be available the day before your check date.

When do I have to have my payroll to Paysmart to be processed?

Payrolls must be submitted by 3:00 p.m. to guarantee same day processing.

Can I enter my payroll online?

Yes, Paysmart is pleased to offer an online option called PPX.

We have been doing business with Paysmart Payroll Services for close to 10 years. What separates them from other similar companies are their employees. When a problem occurs it is handled promptly and effectively. It is a pleasure to do business with them.

– Mike Wingo, President, Roofers Supply