Are you ready to outsource payroll? It’s not surprising because payroll takes up to five hours every pay period for small business owners.
You can do so much more with your time, like running your business. Before you can get to that, you have to find a payroll service provider.
You have a lot of fantastic payroll provider options available. How can you know which one is the best one to fit your business needs?
Read this guide for picking a payroll provider to find out how.
1. Expertise and Experience
The first thing you need to look for in a payroll provider is experience. There are steep penalties for payroll tax errors, so you need a provider who takes that responsibility seriously.
Check the provider’s experience within your industry. They’ll know your unique challenges and ensure you comply with industry-specific regulations.
Reading online reviews is also helpful to gauge a company’s experience and expertise.
2. Services Available
Take a look at the services a payroll service provider offers. This varies from one provider to the next. Some just offer payroll software support while others have full-service options.
They should have onboarding support and integrate with your existing platform.
Think about your business and its growth trajectory. Hire a company that offers services that allow you to scale your business with them.
3. Understanding of State Tax Laws
Do you have employees who live in one state while working in another? This is a common scenario for companies with remote workers or has headquarters near other states.
That makes state taxes complicated. You need to know the tax laws in your state and the states of your employees. You should learn more about these laws and reciprocity agreements as you begin your search.
4. Customer Service
There are payroll service providers that give you software tools and have little to no interaction with you. Others are hands-on and provide outstanding service.
Check to see how responsive payroll service providers are. Know how quickly they can fix errors if you spot them.
5. Costs
You should have a payroll service budget in mind when looking at payroll provider options. Payroll providers charge either a flat fee for payroll or a per/employee fee.
Some providers add a setup fee and have additional services at a la carte rates. Go into this process with a firm understanding of your business needs and budget.
Tips for Picking a Payroll Provider
Outsourcing payroll is a necessity if you want to focus on the important areas of your business. Picking a payroll provider isn’t as difficult as many seem to think.
There are key things that you need to look for in payroll for a small business provider. Look at a company’s experience with payroll in your industry, their knowledge of state tax laws, and customer service. Ensure that the company has a range of services so you can grow with that provider.
Head over to the home page of this site for more tips to help you grow your business.