Written by: Gene S. Smith, CPA
There are several reasons to outsource your payroll. Payroll is a burden of operational work that has no direct contribution to the core business. Small businesses in particular find payroll to be a burden because it is hard to keep up with regulatory issues, software is costly, precious staff time is redirected to non productive work and it is difficult to keep pay among employees confidential.
If your business is shopping for an outside payroll service, here are a few key points to focus on:
1) Reputation – Hire a company that has a verifiable track record of accuracy and trustworthiness. Regardless of the fact a third party is processing your payroll, you, the business owner is ultimately responsible for the timeliness of payroll tax deposits and reporting.
2) Services – Make sure the vendor offers the services that you need at a price that is within your budget. For example, if you require direct deposit, make sure that vendor is set up with the proper banking credentials to handle that. If you want your employees to receive their W-2’s on their hand held device at year-end, make sure the vendor has the technology to deliver W-2’s in that manner.
3) Operating Procedures – How do you want to deliver your information to the vendor? Will hours be reported by phone, fax, web based portal, or some other means? Make sure the vendor is adaptable with how you will be providing the information.
4) Price – Low cost payroll services are often misleading, luring you in with low monthly base fees, only to pile on additional charges over the course of the contract. Make sure all fees are clearly stated in your contract and only work with a vendor that demonstrates transparency.
Payroll Chimp, LLC (a Robert F. Murray CPA’s Company) is a new name for an old service that has been providing payroll processing for many years. Please contact us to see how we can take the payroll monkey off your back.