Handling your business’ books is easier said than done. The IRS penalizes as many as one in every three business owners for payroll errors. This is why more and more entrepreneurs are outsourcing the task.
In light of this, we’ve compiled our top advice on how to evaluate your payroll options. Let’s dive in!
What Should You Expect?
A good quality service should provide help with all the following:
- Running payroll that complements your schedule
- Calculating your taxes and making necessary deductions from your employee’s paychecks
- Handling benefits
- Ensuring your workers are paid on time
- Paying your employment and payroll taxes
- Sending year-end tax forms to all the appropriate employees and contractors
You get the idea!
Where Should You Look?
Getting referrals and testimonials from people you trust is the best place to start. This could be a recommendation from another local business owner, a friend, a family member, etc.
You should note: more substantial payroll services tend to bundle services together. Find out exactly what you’re paying for to ensure you’re not spending more than is necessary.
Questions to Ask a Potential Payroll Service
Once you’ve narrowed down your payroll outsourcing options, ask them a few questions before signing the dotted line.
- How fast is your turn around time?
- Who’s liable for any mistakes?
- Are there additional fees for adding an employee onto the payroll? If so, how much?
- Are the annual fees set or will they change year on year?
- How often will I receive a report?
- Are they able to integrate their software with your current accounting tools?
- Do they assign client’s a specific rep? Ideally, you want a designated point of contact. That way you’ll communicate with someone who knows who you are and what your business’s situation is. With this kind of set up you’re less likely to repeat your details everytime you have a new query.
- Are there additional costs for filing taxes in more than one state?
More importantly, you’ll want to know the standard of customer service they provide. This is especially true if you’re managing a more extensive business.
The more complicated your payroll needs, the more likely it is questions and queries will arise. Ideally, you want a service offering 24/7 support.
You’ll also need to know how safe your business’ sensitive information will be. Ask the potential provider how they store people’s data and what the process is for handling a disaster.
Did This Article Help You Narrow Down Your Payroll Options?
We hope this feature helped you analyze all your payroll options! If you enjoyed this piece, we’re confident you’ll love the other posts published on our blog.
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