| urcing particular business tasks can enable you to | | | | * Providing direct deposit |
| free up resources and energy to focus on your | | | | * Processing W-2 forms |
| core competencies. Payroll is an important function | | | | * Processing 401k and mutual fund plans |
| and in all likelihood it makes sense to outsource | | | | * Addressing tax needs for your company and |
| payroll administration rather than hire resources | | | | providing tax preparation |
| in-house and dedicate them solely to the function. | | | | How to choose a Payroll Service? |
| Payroll companies help you organize your payroll, | | | | Ask for quotes from several companies before |
| adhere to policies and procedures, and get | | | | making a final decision. An easy way to request |
| employees paid on time. | | | | quotes from multiple providers is to go to a B2B |
| To stay on top of your tax obligations is reason | | | | marketplace. Keep the following in mind as you |
| enough for your company to consider using a | | | | decide on the provider. |
| payroll provider. Payroll administration warrants | | | | * Can they provide accurate payroll service |
| attention to detail and even the smallest | | | | without any mistakes in employee’s pay |
| indiscretion can attract heavy penalties from the | | | | or providing tax information to the government? |
| tax authority of your country. In the US, the IRS | | | | Ask for history of efficiency. |
| has a history of levying heavy fines on small | | | | * An occasional mistake is acceptable but how |
| businesses for even the smallest transgression. | | | | quickly can they correct it. If the payroll service |
| Recently released statistics show that one out of | | | | provider is overstretched, they may not have the |
| every three small businesses is penalized in some | | | | resources to quickly provide the remedy. |
| way for not complying with tax laws. | | | | * Is the payroll providers system and software |
| Why should you outsource payroll processing? | | | | compatible with your own operating systems? |
| If you company is large enough, you may choose | | | | Would it be possible to transfer data to and from |
| to conduct payroll functions in-house but be | | | | your business easily? |
| prepared to hire at least a couple of employees | | | | * Are the references flawless? Excellent |
| dedicated to this function. You will also have to | | | | customer service to business owners and its |
| allocate resources to continuously train your | | | | employees is important. |
| payroll staff in use of accounting software and to | | | | * How many clients is the payroll provider |
| keep up with the frequently shifting state and | | | | serving? Large number of clients may indicate a |
| federal tax laws. Also if you are a growing | | | | successful service but attrition in the past few |
| company that is continuously adding new | | | | months may indicate deteriorating quality. Does |
| employees, teams and locations, managing payroll | | | | the provider have adequate resources to serve |
| is going to be quite a challenge. Do you really | | | | your business? |
| want to get distracted from the core-functions of | | | | * Is the pricing competitive? Some companies |
| your business by administering payroll yourself? | | | | may bait you with low basic fees and charge |
| Payroll service providers are experts in what they | | | | heavily for extras. Ask for an all inclusive package |
| do and have economies of scale since they | | | | to compare prices. |
| administer payroll for many other companies. | | | | Once you decide on a payroll provider, scrutinize |
| More than likely, they will deliver payroll services | | | | the contract very carefully for any hidden fees or |
| to your company cheaper and more efficiently | | | | charges that may kick in after a few months of |
| that what you can do yourself. | | | | service. |
| What Services Do Payroll Companies Provide? | | | | Check the first few pay checks very carefully for |
| Payroll companies provide various services. The | | | | any mistakes. It is better to uncover the issues |
| following are the most common: | | | | early enough before they get compounded and |
| * Calculating pay checks for each employee | | | | more difficult to fix. |
| * Addressing tax obligations on a local, state, and | | | | Hiring a payroll provider is an important decision |
| federal level | | | | for your business. It is tough to easily switch a |
| * Printing and delivering checks | | | | payroll provider if you make the wrong decision. |
| * Providing management reports | | | | Make sure you adequately research all possibilities |
| * Tracking employee benefits information | | | | before making a final decision. |
| * Automatic check signatures | | | | |