Payroll. It’s one of the most critical aspects of a business.
For any business, payroll requires a lot of time and attention. For a small business, payroll processing can be a complicated responsibility, fraught with possible problems.
Payroll is certainly critical to employee morale and to employees’ trust in the future of a company. And it is a key factor in motivating and retaining high-quality talent.
To get payroll done right, many businesses choose a payroll outsource solution.
What Does a Payroll Service Do?
A payroll service is an outside company that handles all aspects of a company’s payroll process, including receiving wage and hour information from a company and using that to calculate wages, withholdings, deductions, and vacation and sick pay; print checks; handle direct deposits; and prepare the required employment tax filings.
Additional payroll outsource services can include handling a company’s benefit and retirement programs.
The Benefits of Outsourcing Your Payroll Service
Many U.S. businesses use a payroll outsource service to handle payroll processing. In fact, a survey conducted by Robert Half and the Financial Executives Research Foundation found that 39 percent of companies outsourced payroll responsibilities, offering these benefits:
- Time is saved every pay period. That is time that small business owners can confidently focus on more mission-critical activities.
- Money is frequently saved by having a third-party handle payroll instead of hiring in-house employees to do that work, in addition to not buying software, providing employee training, etc.
- A payroll outsource service can provide enhanced security for sensitive information, including providing back-up data storage and up-to-date protection programs.
- Since government regulations change, a payroll service can ferret through the complications of rules, regulations and tax rate changes in order to avoid potentially costly mistakes. They also can become legally responsible for accurate reporting or data misrepresentation.
- You have fully trained professionals handling your critical payroll functions.
- You have access to a wider range of services than typically can be provided by a small business employee.
Most important, perhaps, is having the peace of mind that comes from having the right kind of services to help your business succeed.
How to Choose a Payroll Service
The first thing you can do to find a payroll service is to get referrals from other professionals that you trust, including your financial and legal associates. Then check the reviews of those references. Get affirmations of their service from their other clients.
Carefully plan out the payroll outsource services that you feel you will need. Meet with potential providers and think of important questions to ask them, such as:
- Who will do the work on your account?
- How do their services match your needs list?
- What is their pricing?
- How fast is their turnaround?
- What will they require of you?
Get Expert Financial Service
Contact Doerhoff & Associates CPA, based in Jefferson City, Mo., for professional accounting assistance that will help you achieve the business success you are striving for. We offer comprehensive services designed specifically with you in mind.