Payroll Services Agreement

Client: [Company Name] · Payroll Provider: [Company Name] · Effective Date: [Date]

1. Services

Provider will process Client's payroll, including: [calculating wages, withholding taxes, direct deposit processing, filing payroll tax returns, issuing W-2s/1099s], on a [Frequency, e.g. bi-weekly] payroll schedule.

2. Fee

[Per-employee-per-payroll fee of [Amount] / flat monthly fee of [Amount]], invoiced [Frequency].

3. Client's Responsibilities

Client will submit accurate hours, pay rates, and employee changes to Provider by [Deadline] before each pay date, and is responsible for the accuracy of information it submits.

4. Tax Filing Responsibility

Provider will file and remit payroll taxes on Client's behalf using funds Client provides for that purpose, based on the payroll data submitted.

5. Errors

[State how errors are corrected and who bears responsibility for penalties resulting from Client's late/inaccurate submissions versus Provider's processing errors.]

6. Data Security

Provider will maintain reasonable security measures to protect employee personal and payroll data.

7. Term and Termination

This Agreement runs [month-to-month / for a Term] and either party may terminate with [Notice Period] notice, with a transition plan for the final payroll cycles.

Client: ______________________ Date: ____________ Payroll Provider: ______________________ Date: ____________

*This document is provided for informational and educational purposes only and does not constitute legal advice. Using a payroll provider does NOT automatically transfer legal responsibility for unpaid payroll taxes away from the employer — the IRS can and does hold the underlying business liable if a payroll provider fails to remit taxes, so vetting the provider's reliability matters as much as the fee they charge.*