How it runs for manufacturers and wholesalers
You approve every run; the provider deposits taxes from your account.
What is payroll processing outsourcing?
Payroll processing outsourcing means a remote team prepares each pay run inside your payroll software: reconciling hours, entering changes, checking deductions and producing the run for the employer to approve. The employer keeps the payroll account, the bank authority and the legal responsibility. The provider posts the payroll journal and reconciles it, so payroll and the books agree.
What we handle for manufacturers and wholesalers
- Runs prepared from time-clock exports and submitted after your approval
- Shift differentials, overtime and piece rates checked against your plan and state rules
- Direct labor allocated to work orders or cost centers, indirect labor to overhead
- Agency and temporary labor invoices recorded against the same cost centers
- Payroll liabilities reconciled monthly to filings and bank debits
The KPI that matters here
Payroll journal posted with direct and indirect labor split within 1 business day of each run.
Manufacturing compliance notes
Sales-tax exemption certificates
Resale certificates, manufacturing machinery and equipment exemptions and direct-pay permits each exempt a sale only when a valid certificate is on file at the time of sale or obtained within the state's grace period. We collect certificates at customer setup, store them against the customer record, track expiry dates and produce an exempt-sales report with certificate references for every period. Your preparer or Avalara files the return; we prepare the workings.
Cost of goods sold and inventory valuation
Inventory must be valued on a consistent method, whether FIFO, weighted average or standard cost with variances, and cost of goods sold must include the costs your CPA determines are inventoriable under IRS §471 and, above the gross-receipts threshold, §263A. We apply the method your CPA sets, reconcile the inventory system to the ledger monthly and document every adjustment, so year-end is a review rather than a rebuild.
Landed cost and import duty
Customs duty, tariffs, freight, insurance and brokerage on inbound goods are part of inventory cost and reach expense only when the goods are sold. We allocate these costs to receipts in Cin7, NetSuite or your ERP and post the same allocation in the ledger, so margin by product reflects what the goods actually cost to put on the shelf.
Multi-state nexus for wholesalers
A wholesaler with customers across states may have economic nexus in states where it makes no taxable sales, and still owe registration and returns to report exempt sales. We track sales by ship-to state and flag thresholds so you and your advisor can register where required. We do not give tax advice; we supply the numbers.
Manufacturing software we work in
- QuickBooks Online
- Sage Intacct
- Sage 50
- NetSuite
- Xero
- Bill.com
- Avalara
- Cin7
- Katana
- Fishbowl
- All 50 platforms
More for manufacturers and wholesalers
Other services for manufacturing
Frequently asked questions
Do you run payroll for manufacturers or support the provider?
We support it. Gusto, ADP or Paychex calculates taxes, files returns and deposits from your account; we prepare each run from approved time data, check overtime and differentials, submit after your approval, post the journal with the direct and indirect split and reconcile the liabilities. You keep control of payments; we remove the data entry and the allocation work.
Why split direct and indirect labor?
Because direct labor on the production floor is part of the cost of the goods made and belongs in inventory until those goods sell, while supervision, maintenance and warehouse labor are overhead. Booking everything to wages expense understates inventory and misstates margin by period. Your CPA sets the policy; we apply it to every run.
How do you treat temporary and agency workers?
Agency invoices are recorded as labor cost against the same work orders or cost centers as employees, not as a generic contractor expense, so product cost is complete. Hours are matched to the agency's timesheets before the invoice is approved. The accounts payable service for manufacturers & wholesalers handles the invoice matching; payroll support handles the allocation.
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