Is there an additional charge if All Team processes the payroll for the franchisee's administrative employees?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 (referred to as USER) elects to have All Team (ATFC) process payroll for their administrative employees, there is no additional charge for this service. All Team will process the payroll from the franchisee's account based on the wages prescribed by the franchisee, after deducting and withholding the necessary taxes and deductions. All Team will also pay all direct payroll costs from the franchisee's account, including any penalties due to late filing or errors in calculating tax, unless these are attributable to the franchisee's actions or inaction.
While there is no direct charge for processing administrative payroll, franchisees should note that they are responsible for ensuring adequate funds are available in their account for All Team to make these payments. Any shortage of funds will be considered a material default under the agreement. Additionally, while the use of pay cards is recommended where legally allowed, if payroll checks are printed in All Team's office and sent to the franchisee overnight, the franchisee will bear the expense of this overnight delivery.
All Team will provide the franchisee with W-2s in bulk for distribution to their employees and will also prepare payroll tax deposits and quarterly tax reports for all federal and state jurisdictions on behalf of the franchisee. The franchisee must execute IRS Form 2848 to grant All Team the authority to file state and federal payroll taxes on their behalf. The franchisee is responsible for entering any garnishments into the software program before payroll is processed and for making the required payments to the proper authority as required in the withholding order. Franchisees should be aware of these responsibilities and costs associated with payroll processing, even though All Team does not charge an additional processing fee.