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Customized Payroll Processing
with Direct Deposit
Fast, Efficient, Fully Automated, and Transparent
- Your Division Status Report
- P.A.C.E.'s proprietary report generator, P.A.C.E. Base,
creates and maintains ongoing division status reports for
all Division Managers. Line items include outstanding invoices,
collected revenues, recurring division expenses, intermittent
expenses, and gross wage.
- Your area of the secure P.A.C.E. Members Site contains a
clickable division status report for your personal account,
including the current balance of the funds in your division's
account.
- You may access this record at any time. For example, when
you click on a division revenue item your browser will open
a printable, detailed Division Revenues Report corresponding
to that entry. When you click on a division expense item your
browser will open a printable, detailed Division Payout Report
corresponding to that entry.
- Revenue line items are updated automatically as follows:
- Whenever your division receives a payment from a client
(or from you, if you are a small business owner);
- On the first of the month when earned Referral Rewards
are calculated and posted to your account.
- Expense line items are updated automatically when payroll
is processed.
- Advantage to you: P.A.C.E. Solo W-2™ and P.A.C.E.
Base keep you appraised of the status of your division's cash
flow situation, including every penny received from every
source, every penny paid out as a division expense, and the
current balance in your division's account.
- Automated Notification of Changes in Your
Division's Status
- P.A.C.E. Base notifies you immediately by e-mail whenever
an update is made to your online division status report.
- Automatic notification of received revenues gives you the
opportunity to:
- Know the ongoing status of your clients' payments;
- Assess the status of your reimbursable expenses, enter
new expenses online, and submit original receipts prior
to the calculation of your payroll;
- Contact your Division Administrator to discuss the management
of your division's account;
- Know the amount of your gross wage as soon as your payroll
is processed.
- Advantage to you: One more way that P.A.C.E. Solo W-2™
and P.A.C.E. Base keep you appraised of the status of your division's
cash flow situation.
- You Determine How Often and When Your Division
Processes Your Payroll
- P.A.C.E. uses the services of ADP,
the largest and most experienced payroll processing company
in the world.
- Payroll is processed and submitted to ADP payroll services
on Wednesdays.
- Unless notified otherwise, P.A.C.E. will calculate your gross
wage as 100% of the net profit of your division less division
reserves.
- To calculate the net profit of your division, P.A.C.E.
Base starts with the current balance of your division's
account. It then subtracts:
- The employer's share of actual payroll taxes;
- Group insurance premiums, if due;
- Approved reimbursable expenses;
- The employer's contribution to your retirement savings
account;
- The remainder represents your division's net profit for
the period.
- To calculate your gross wage, P.A.C.E. Base starts
with your division's net profit and subtracts any reserves
that you may want to remain in your account to cover various
contingencies. For example, you may want to maintain a division
reserve to pay group insurance payments during an extended vacation
or during non-billable periods between projects devoted to marketing
your consulting services.
- The balance after the subtraction of your division's expenses
and reserves is the amount of your gross wage,
which P.A.C.E. submits to ADP for payment of payroll.
- Alternatively, you may receive a fixed gross wage on each
payday, and let the balance in your division's account float,
in which case you can direct your Division Administrator to
issue periodic bonus payments to you as necessary to adjust
your division's balance.
- Advantage to you: P.A.C.E. Solo W-2™ gives you the
immediate and continuous ability to control your income flow,
including how often and when your division processes your payroll.
- You Determine How and Where Your Division
Sends Your Payroll
- Payroll processed on Wednesday typically arrives in your bank
account on Friday.
- Although direct deposit is the fastest and most secure method
of payment, you may also opt for paper checks mailed to your
address.
- You may select up to three accounts for direct deposit.
- You may specify how payment is to be made to each account.
For example, you may allocate your direct deposit as follows:
- $275 flat payment to Account #1;
- $500 to Account #2;
- Remainder to Account #3.
- You may select from any bank account (savings, checking, etc.),
credit union account, brokerage savings account, or other financial
services account that accepts direct deposit.
- Advantage to you: Payment of your payroll just can't
get any easier or more flexible.
- Pay Stubs
- Your net pay is what you get to keep after the withholding
and payment of tax-exempt payroll payments, taxable payroll
payments, and income taxes.
- Tax-exempt payroll payments include:
- One-half (the employee's share) of your Social Security
and Medicare taxes;
- Additional payroll taxes (varies from state to state);
- Payroll contribution (the employee's contribution)
to your retirement savings account.
- Taxable payroll payments include:
- Premium for long-term disability insurance, which
makes possible tax-free benefit payments --
a tremendous advantage;
- Premium for life insurance policy if above $50,000
benefit amount (Maximum allowed by IRS for a tax-free
life insurance benefit);
- The excess premium is listed on your pay stub
as “GTL” (Group Term Life);
- The excess premium amount is considered a “taxable
fringe benefit” by the IRS, and it must be
taxed as “income”;
- Court ordered lien payments, spousal support, child
support, and other court ordered payments imposed
by the courts on your employer.
- Income tax withholdings include:
- Federal income tax;
- State income tax (where applicable)
- Local income taxes (where applicable)
- You may access past and current pay stubs at any time by
logging on to the ADP Web site and entering your user ID and
password.
- You may print a hard copy for your records, or download
a soft copy to your computer.
- The online pay stub is highly detailed and very complete
compared with printed check stubs.
- Advantage to you: Your division report and your
pay stub provide a complete accounting of cash flow from receipt
of your division's revenues, through calculation of your division's
expenses and your gross wage, to the deposit of your net pay
in any of three different bank accounts.
The unique P.A.C.E. Solo W-2™ business model is completely transparent,
so that you always know where every penny of your hard-earned
revenues goes.
- Fast Generation of IRS Form W-2 at End
of Year
- At the end of the year, P.A.C.E. reports total wages and
withheld taxes to the IRS on IRS Form W-2, Wage and Tax
Statement. P.A.C.E. transmits this form to the IRS at
the end of the year, and gives you a copy.
- You then file your copy of IRS Form W-2 with your local,
state and federal income tax returns.
- You may access past and current W-2 forms at any time by
logging on to the ADP Web site and entering your user ID and
password.
- You may print a hard copy of your W-2 for your records,
or download a soft copy to your computer.
- This means that you don't have to wait until you receive
your W-2 form in the mail to prepare your tax return. You
can access your W-2 online and apply for your tax refund almost
immediately.
- Advantage to you: Filing
your taxes is greatly simplified compared with filing as a
self-employed independent contractor -- So simple, in fact,
some P.A.C.E. Division Managers report that they are able
to file their personal taxes using IRS Form 1040EZ.
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