Payroll Administration
PAYROLL ADMINISTRATION
Full-service payroll processing, tax filing, and compliance — handled under our EIN so you're never on the hook for a missed deposit or miscalculated withholding.
Payroll is the most time-consuming administrative function in most small businesses — and the one with the highest compliance risk. A single payroll tax error can trigger IRS penalties that far exceed the cost of professional payroll services. KeyHR's payroll administration eliminates that risk entirely by making us the employer of record for payroll tax purposes.
How KeyHR Payroll Administration Works
When you partner with KeyHR, we enter into a co-employment relationship with your business. For payroll purposes, this means we become the employer of record — we file all payroll taxes under our EIN, not yours. Your employees are jointly employed: you direct their work, we handle the paperwork.
This distinction matters enormously for compliance. When KeyHR files your payroll taxes, we assume legal responsibility for accuracy and timeliness. If there's an error, it's our problem to fix — not yours to pay penalties on. This is fundamentally different from a payroll processor like ADP or Paychex, which processes your payroll but leaves you as the employer of record with full compliance liability.
Our payroll process runs on a schedule you define — weekly, bi-weekly, semi-monthly, or monthly. Employees submit hours through the Enwage platform, managers approve, and payroll is processed and deposited automatically. The entire cycle, from time submission to direct deposit, is handled without your involvement.
Multi-State Payroll Compliance
If you have employees in multiple states — or if you're planning to expand — multi-state payroll compliance is one of the most complex challenges you'll face. Each state has its own income tax withholding requirements, unemployment insurance rates, disability insurance programs, and filing deadlines. Some states have city or county-level taxes on top of state requirements.
KeyHR is licensed and operating in all 50 states. Our compliance team monitors state and local tax law changes in real time and updates our systems automatically. When a state changes its withholding tables or introduces a new payroll tax, your payroll is updated before the effective date — without any action required on your part.
For businesses with employees in California, New York, or other high-complexity states, this alone is worth the cost of PEO partnership. California's payroll tax requirements alone involve state income tax, SDI, SUI, and ETT — each with different rates, bases, and filing requirements.
The Enwage Employee Self-Service Portal
Every KeyHR client gets access to Enwage, our proprietary HR and payroll management platform. For payroll, Enwage provides:
- Real-time pay stub access for all employees
- Direct deposit setup and management
- W-2 and tax document access and download
- PTO balance tracking and time-off requests
- Benefits enrollment and management
- Manager dashboards for payroll approval and reporting
Employees no longer need to contact HR or payroll staff for routine requests. Everything they need is available 24/7 through the Enwage portal or mobile app.
Payroll Cost Savings Through PEO
NAPEO research consistently shows that PEO clients reduce their HR administration costs by 20 to 40 percent compared to managing these functions in-house. For payroll specifically, the savings come from multiple sources:
- Eliminated software costs: No payroll software subscriptions, no annual updates, no IT support for payroll systems
- Reduced staff time: The hours your bookkeeper, office manager, or HR staff spend on payroll are redirected to higher-value activities
- Penalty avoidance: IRS payroll tax penalties average $845 per incident. Eliminating even one penalty per year often covers a significant portion of the PEO fee
- FUTA/SUTA savings: KeyHR's favorable unemployment insurance rates, built through our large employer status, are passed through to clients
WHAT'S INCLUDED
- Weekly, bi-weekly, semi-monthly, or monthly payroll processing
- Federal, state, and local payroll tax filing under KeyHR's EIN
- Direct deposit for all employees
- W-2 and 1099 preparation and distribution
- Garnishment processing and management
- New hire reporting in all 50 states
- Multi-state payroll compliance monitoring
- Enwage employee self-service portal
- Manager approval workflows and reporting dashboards
- Year-end payroll reconciliation and reporting
- Dedicated payroll specialist assigned to your account
- Same-day payroll corrections when needed
FREQUENTLY ASKED QUESTIONS
How long does it take to transition to KeyHR payroll?
Most clients are fully onboarded within two to three weeks. We run a parallel payroll cycle during onboarding to verify accuracy before going live. Your employees receive Enwage portal credentials as part of the onboarding process.
What happens to my existing payroll records?
Our onboarding team migrates your existing employee records, pay rates, tax withholding information, and year-to-date payroll data into the Enwage system. No data is lost in the transition.
Can KeyHR handle payroll for tipped employees?
Yes. KeyHR has extensive experience with tip credit calculations, tip pooling compliance, and the complex payroll requirements of the hospitality and restaurant industries. We handle FLSA tip credit documentation and state-specific tip laws.
What if I have employees in multiple states?
Multi-state payroll is one of KeyHR's core strengths. We're licensed in all 50 states and our compliance team monitors state and local tax law changes in real time. There's no additional complexity for you — we handle it all.
How does payroll integration work with my existing accounting software?
Enwage integrates with major accounting platforms including QuickBooks, Xero, and Sage. Payroll journal entries can be exported automatically after each payroll run, eliminating manual data entry.
READY TO HAND OFF PAYROLL FOR GOOD?
Get a free quote and see exactly how much time and money KeyHR's payroll administration can save your business.