Engagement Letter for Payroll - David Hance CPA



David Hance CPA

Monthly Bookkeeping/Payroll Engagement Letter

We appreciate the opportunity to provide monthly bookkeeping and payroll services for your company. To ensure an understanding between us, this letter sets forth the terms of our engagement as well as the nature and limitations of our services to you.

Monthly Bookkeeping Services

We will:

1. Input and reconcile all banking transactions

2. Input all credit card transactions for credit card accounts

3. Prepare monthly financial reports to include: Comparative Quarter & YTD Profit & Loss, Comparative Balance Sheet

4. Organize all bookkeeping / financial documents in an audit ready fashion

5. Provide guidance on all bookkeeping and business tax issues

6. Scheduled pick-up and delivery of bookkeeping / financial documents

Documents Required:

To complete the bookkeeping services noted herein, we must obtain the following documents. If these documents are not provided in a timely manner, we cannot be held responsible for delay in financial statements or tax return preparation. The required documents include, but are not limited to:

1. All business bank and credit card statements for the period.

2. Verification documents for all bank deposits, i.e. deposit slip, invoices, cash register receipts, etc.

3. All business checks cleared for the period. An electronic format or bank generated copies are acceptable.

4. Receipts for business related purchases paid with cash register funds and/or petty cash funds.

5. Receipts for business related purchases paid with personal funds.

6. Copy of loan/finance documents for new equipment.

7. An in-house liaison available to answer questions

Payroll Calculation Services

We will:

1. Calculate payroll for your employees and contractors

2. Calculate federal and state payroll tax deposits

3. Prepare federal and state payroll tax forms as required

4. Prepare Form W-2 & 1099s

5. Electronically file all W-2s & 1099s

Our responsibility

Beginning _____________, we will run payroll for your company every week/every other week/twice a month/every month (please circle selection). We will set up new employees and contractors for payroll on an as needed basis using the information from documents you provide.

We will inform you of the amount and due date of your payroll tax payments and filings and assist you in making them.

Your responsibility

You will provide us with payroll information on a timely and periodic basis, including hours worked, pay rates, employee status, and benefits information. You will provide us promptly with updated and corrected information as needed.

You must maintain sufficient funds in your bank account to cover payroll expenses and related tax liabilities. You will be charged an exceptions fee if there are insufficient funds in your account when payroll or payroll taxes are due.

Payment and Filing Services

You may authorize us to make payments and filings for you. To do so, a principal officer or partner of your business must sign the Form 8655 and Electronic Services Authorization form accompanying this letter and return them to us for filing. If you authorize us to pay your employees or contractors electronically, you must ask each of them to sign a Direct Deposit Authorization and retain it in your files.

By giving us access to your bank account, you authorize us to make payroll, contractor and payroll tax payments and filings on your behalf, and you will be bound by them as though you had made them yourself. Typically, we will send payment transactions through the Automated Clearinghouse (“ACH”) Network. You agree that these payment transactions will be governed by the ACH Rules as in effect from time to time, and that each entry we make on your behalf will be authorized, timely, for an amount due and owing, and will not violate the laws of the United States.

Alternatively, we may agree to print and mail checks for you or provide you the information to do so yourself.

Our fees and responsibilities

Our fees for providing monthly bookkeeping are figured per month. You will be invoiced quarterly and payment is due within 30 days of the invoice date. In recognition of the relative risks and benefits of this agreement to both the client and the accounting firm, the client and the accounting firm have discussed and have agreed on the fair allocation of risk between them. As such, the client agrees, to the fullest extent permitted by law, to limit the liability of the accounting firm to the client for any and all claims, losses, costs, and damages of any nature whatsoever, so that the total aggregate liability of the accounting firm to the client shall not exceed the accounting firm’s total fee for services rendered for the year under this agreement. The client and the accounting firm intend and agree that this limitation apply to any and all liability or cause of action against the accounting firm, however alleged or arising, unless otherwise prohibited by law. Both parties agree that there is a one-year limitation period to bring a claim against us for errors and omissions. The one-year period will begin upon the date of the tax professional’s signature on the tax returns covered by this engagement letter

Services not provided

We will not audit or verify the information that you provide to us. If an amount appears unusual, we will call it to your attention. However, we are not responsible for the detection of errors, irregularities, theft, fraud or illegal acts. We do not provide legal services.

Approvals

We are pleased to have you as a bookkeeping and payroll client. We hope that this will begin a long and pleasant association. Each of us, however, retains the right to terminate this engagement at any time. Please date and sign a copy of this letter and return it to us to acknowledge your agreement with the terms of this engagement.

Acknowledged:

________________________________________________ ____________

Business Name Date

_________________________________________________

Signature

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