The function of payroll for any business goes much further than keeping the books. Every year the IRS penalizes numerous businesses for errors and non-compliance with the set regulations. The best way to save yourself the headache, avoid any penalties and save time and money therefore is by getting a professional service to handle your payroll. You can concentrate on making money whilst leaving the payroll function to an external service provider. Additionally, the cost of hiring this service is much lower than the cost of trying to do the job internally. Below are several tips that will help you to choose the best service provider for your business:
1. Online research
An online search will help you to get information on different payroll service providers in the market. There are many options to choose from but you need to carry out research so that you can get the company best suited to your specific business needs. Be sure to read reviews and get recommendations from people you can trust if you have any business connections for example have used a similar service themselves.
2. Expert advice
Talk to an accountant, attorney or someone who has experience in the industry so that you can get the information you need to enquire about how to get the best service provider. Getting references from similar businesses in your industry can also help you to make an informed decision. You can find out the various packages available from the different service providers and compare quotes too.
3. Determine your needs
Before you talk to any service provider, you need to determine exactly what you need. If you are unsure about your needs, you might end up with a costly package that has additional services that do not benefit you. Establish your requirements for the year and be wary of a provider who tries to talk you into paying for services above what is necessary and adequate. Make sure that you consider any growth projections or new employees that you plan to hire within the year into your specification too.
4. Your budget
You need to know how much you can afford to pay for the service so that you can get a firm that will offer a package that is within this. Most companies have packages that are tailor made for different clients and you can get something that is affordable. The cost will often be determined by the package you choose and the number of employees you have.
5. The features
Establish the features that you need. Some packages come with extra services such as human resources services so determine how often you want to pay your employees or issue paychecks. You need to ensure that you get a provider who can handle your particular industry and the kinds of employees in your business. This is especially important if you have unique business requirements like union rules or you are in the hospitality industry where tips and other bonuses are included – a service that is familiar with your line of work will offer all the features that you need.
To conclude, before you hire a service, carry out research to ensure that there are no complaints filed against the company. Contact the Better Business Bureau and other bodies to get all the information that you need then give yourself a few options before making a final decision.
About the Author: Lucy is working with a number of expanding businesses that have benefitted from outsourcing their payroll. She suggests going to Ceridian for a quality service.