<<< Return to Newsletter Archives
|
|
|
|
|
Helpful Tips when
Choosing a Payroll Company
|
An entrepreneur by necessity wears many hats in running a business, but ought a green eye-shade be among them? Business owners need to contemplate whether the time and hassle associated with doing payroll themselves outweighs the economic benefits, and whether outsourcing the task to an expert is a cost- and time-efficient answer.
Doing payroll is one of those tasks that most small-business owners tend to tackle themselves. And while it makes sense to do it yourself if you have just a few employees and a payroll with little variation, anything beyond that should prompt you to check into using one of the many national and regional payroll services to help cut the amount of time you spend on payroll each period.
It will cut down the amount of time you spend on payroll each period from hours to minutes -- not to mention eliminate the errors you are likely making as someone not well-versed in the complexities of the tax laws.
Prices among payroll services vary, and may comprise a set sum plus an additional charge per employee or depending on how frequently you want to pay your employees. Beware potential hidden fees, such as those enacted when you add a new worker or an existing worker opts to change to direct deposit. Also do your homework on how often a service provider raises its fees or assessments on its clients.
Other tips to keep in mind. When hiring an outside payroll service, look for a company that:
- will meet its obligations and provide the agreed-upon services consistently and on time;
- accepts payroll data in the format that is most workable for you, be it a Web-based system, faxes or phone-ins;
- can accommodate you if you have branches in multiple states;
- will not cut and run should taxing authorities find a mistake, and will pay any associated penalties;
- has a customer service department flexible enough to accommodate you in the event you are delayed in transmitting the figures for that pay period.
And remember, just as you would with any new service provider, seek recommendations and referrals from peers whose opinion you trust, and be sure to get and check a provider's references. Ask that those references be selected from among businesses similar to your own so you can better gauge what your experience with the provider may be like.
Adapted from "Choosing a Payroll Service Provider," by Melanie Schaefer
|
|
|
|
|
|
|
|
|
