What is the difference between my payroll service and labor distribution?
Your payroll service merely computes your gross pay, withholds and may or may not expedite taxes and tax return filings, and deducts net pay, employee and employer payroll taxes and other fees from your bank account. Your payroll services are only related to labor distribution for “gross payroll” only. Your labor distribution system takes the gross payroll and distributes the gross pay to each labor category by direct (by contract), indirect (by indirect cost pool) and unallowable categories for purposes of reimbursement. Labor distribution does not have anything to do with payroll taxes, tax return filings, or deductions from your bank account.
