Proper payroll management is very essential for every business. Failure to get it right will not only get business owners into issues with employees, but also with tax authorities. However, payroll management can be a bit tasking and potentially capable of robbing businesses of time that could be better spent making money. This is the main reason why an increasing number of business owners now prefer to outsource these functions to payroll services. But before going ahead to choose a payroll service, there are some things you need to consider.
It is an advisable thing to ensure that you request for referrals when looking to choose a payroll service. This will help you avoid issues that could arise as consequences of choice made. You could ask other business owners what service they use or check with the Better Business Bureau. Your banker or a certified public accountant (CPA) may also be asked for recommendations.
The experience of a payroll service is also worth considering. Payroll and business taxes could be rather hard to handle and their calculations prone to errors. This is why you want to ensure your payroll service has been around for a while and can guarantee accuracy and efficiency.
You want to make sure that you know what the pricing for a payroll service is before making any commitment. Sometimes, pricing is based on bundles of services, some of whose inclusions may not be relevant to your business. It is, therefore, important to know what proposed pricing structure covers. A breakdown of pricing should be requested to help you identify hidden fees that could otherwise go unnoticed.
It is recommended that you inquire from your payroll service provider to know the person directly managing your account. You should not assume that the professional-looking and seemingly experienced individual you spoke to the first time will oversee your account. The account handler could, in fact, be a novice. Try to familiarize yourself to your account manager and ask questions bothering your mind.
Payroll tax handling
You equally need to ensure that you know if and how your payroll service handles payroll taxes. Some services may expect you to do your payroll tax calculation, filing and payment all by yourself. A good payroll service should be able to help you ensure compliance to payroll tax requirements by taking care of calculation, payment and filling — in a timely fashion as well. You should also find out beforehand what extra fees, if any, are expected for the payroll tax services.
It is essential for you to ask your payroll service provider how secure your sensitive financial information is. You surely do not want such information to fall into the hands of hackers. It is advisable to ask to know what measures are in place to ensure security breaches are prevented.
There will be times when you need to reach your payroll service provider for one reason or the other, especially during emergencies. The ease of contact and responsiveness will depend on the quality of customer support provided. References supplied by a provider may be able to give you an idea of its customer service quality. You could also assess quality of customer service by yourself, looking through available contact options and trying your most preferred.
A good payroll service will help in no small measure to avoid payroll issues with tax authorities and employees. Giving a thought to the factors mentioned will help you get your choice of service right.