1. What are the major current issues in payroll that accountants should be aware of?

1. What are the major current issues in payroll that accountants should be aware of?

Payroll has long been perceived as a chore. Employees need to be paid, necessary government forms have to be filed, and taxes have to be paid promptly. "Many mistakes happen due to the preparer simply not knowing the rules," said Michael Hoffman, CPA, of the New Jersey-based firm of WithumSmith+Brown.

Accounting professionals had traditionally avoided offering payroll as a service because the labor involved in payroll processing often took away from more profitable engagements. However, as the economy changed and payroll systems continued to improve, accounting firms have been re-evaluating their options regarding payroll - whether to offer it as a client service or refer it to a payroll specialist.

In a tough economy with a highly competitive market for accounting talent and the ever-increasing complexity of state and federal regulations, it is more important than ever for accounting professionals to examine their service offerings and clients' needs and expectations to find the best solution for their clients and their firms.

Starting salaries in the accounting and finance, information technology, and administrative fields are expected to remain relatively flat or see modest declines next year, but some positions will buck this trend, according to the 2010 Salary Guides from Robert Half International.

Intuit plans to expand its presence in the market for helping small businesses manage their 401(k) and health insurance benefits, even though many of its own customers do not offer such benefits.

Online payroll provider myPay Solutions has sealed a partnership pact with consultancy HR AnswerLink to offer human resources services to myPay users.

The national average salary for finance and accounting professionals is expected to decline slightly next year by 0.85 percent, with CFOs and treasurers taking an even bigger hit of 7.7 percent, according to a survey by staffing company Ajilon Professional Staffing.

Payroll and benefits outsourcing provider Paychex Inc said the troika of weak economic conditions, the ongoing credit crisis and low rates of investment returns prompted a 17-percent decline in first-quarter profits, to $123.6 million compared to the year-ago first quarter.

Payroll services provider CompuPay Inc. has acquired New Hampshire-based competitor Infinity Payroll for undisclosed terms.

Eighty-four percent of CFOs plan to maintain their current accounting and finance staff levels in the fourth quarter, according to a new survey.

Universal Business Computing Co. has released the latest versions of its general ledger and payroll software with new productivity enhancements.

The best ways to work with client payroll

The Association of Chartered Certified Accountants has created an online training resource to help accountants hone their career development plans.

Seven New Englanders have been indicted in Boston for conspiracy to defraud the U.S. government after they were accused of promoting multiple tax fraud schemes.

Intuit has completed its $170 million acquisition of PayCycle, expanding the company’s online services strategy with a payroll provider that counts more than 85,000 small businesses as customers.

Fifty-seven percent of accountants say they plan to stay with their current employer once the economy improves, but 23 percent intend to look for a new job when the economy rebounds.

Universal Business Computing Co. is offering “pay as you go” workers compensation insurance to all of the company’s payroll service clients through a partnership with Cennarius.

The downslide in the economy, coupled with a constricted credit market, resulted in a 7 percent drop in profits for payroll and benefits outsourcing provider Paychex Inc., to $533.5 million versus the company's fiscal year 2008 numbers.