What deductions and withholdings will All Team make from the franchisee's administrative employees' wages?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
USER shall pay ATFC's costs and expenses in providing this service.
The W2's will be prepared and sent in bulk to USER for distribution to their employees.
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- Administrative Payroll. If USER elects, at no additional charge to USER, ATFC will process the payroll for USER's administrative employees from USER'S account, based on the Wages as prescribed by USER after deducting and withholding there from an amount equal to all income, social security and other taxes, disability payments and deductions (except worker's compensation insurance premiums) which may be required by applicable law to be deducted and withheld as directed by USER. Further, ATFC will pay on behalf of USER, from USER'S account, based on Wages processed by ATFC pursuant to this Processing Agreement, all Direct Payroll Costs, which payments shall be made directly to the entities entitled to the receipt thereof, including any penalties due to late filing or error in calculating tax due, except to the extent attributable to any action or inaction of USER. The use of Pay Cards is highly recommended where allowed by law. However, payroll checks may be either printed in USER'S office (on printer approved by ATFC) or in ATFC's office and sent overnight to USER at USER's expense. ATFC will advise USER of the administrative payroll costs via electronic mail after payroll has been processed.
Source: Item 23 — RECEIPT (FDD pages 34–161)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, if a franchisee elects to have All Team process payroll for their administrative employees, All Team will deduct and withhold certain amounts from the employees' wages. These deductions include all income, social security, and other taxes, disability payments, and other deductions which may be required by applicable law. Worker's compensation insurance premiums are excluded from these deductions. These deductions and withholdings will be directed by the franchisee. All Team will also pay all Direct Payroll Costs on behalf of the franchisee from the franchisee's account. Direct Payroll Costs are payments made directly to the entities entitled to the receipt thereof, including any penalties due to late filing or error in calculating tax due, except to the extent attributable to any action or inaction of the franchisee.
All Team also provides annual wage statements (W-2s) to the franchisee for each administrative employee processed by All Team, detailing wages earned, taxes, and other amounts withheld and deducted. The franchisee is then responsible for distributing these W-2s to their employees. The franchisee will pay All Team's costs and expenses in providing this service.
It is important for a prospective All Team franchisee to understand these payroll processing services and their associated costs. While All Team handles the payroll processing and tax filings, the franchisee remains responsible for ensuring adequate funds are available in their account to cover these payments. Any shortage of funds will be considered a material default under the Processing Agreement. The franchisee should also be aware of their responsibility to enter any garnishments into the software program before payroll is processed and to make the required payments to the proper authority as required in the withholding order.