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When Your Small Business is Big Enough for Payroll Services
As your business grows, it is necessary to address the process of payroll. This can be managed in-house as long as you have a limited number of employees. For most businesses, as the company thrives, the numbers of employees increase, warranting the act of outsourcing for payroll services.
What payroll provider should I choose?There is a great wealth of payroll vendors to work with. It takes some effort to find the one that works best for your business. To do so, you must ask what qualities you are looking for in your provider. Priorities vary according to each company, but consider the following:
- You want to work with a vendor that provides quality service. You need to find a vendor that understands there are hundreds of payroll service providers vying for your business, and want to show you they are the right choice.v - Technology is a factor to have in mind. Your payroll sequence may be very simple or quite complex. Your provider needs to be situated with the technology your payroll needs.
- Experience is a plus. There are government rules and regulations to abide by regarding salaries and taxes. An experienced payroll service will be familiar with laws germane to the service they provide.
- Everything comes at a price. Pricing will vary according to the size and complexity of your payroll. Different vendors will have supplemental fees that apply. Make sure you are clear on what you are being charged for before signing on with your vendor.
- Location may or may not be a pressing issue. If you establish a regular timeline with your payroll provider, there should not be a problem with getting paychecks to your employees or having money directly deposited in their accounts. Some companies like the feeling of working with others in their vicinity; if this is an issue for you, then search for a provider in close proximity.
What to stay away fromThere is good and bad in every industry and payroll services is no exception. Above, we mention some factors that are important to most. Below, we will mention some things to stay away from. Consider the following:
- Each business enters a partnership with expectations. If a payroll service provides poor service or does not perform the tasks they promised, you will want to look elsewhere. Good communication is vital, if customer service is an area of trouble for your provider, then prepare to make a move. - Outsourcing is a good business decision, but you want a good return on your investment. Some payroll providers will charge prices that are too high for you to factor into your budget. That is why it is important to shop around for a vendor before settling on one.
- Closely tied with the above suggestion, is being wary of working with incompetent vendors. Some suppliers will look enticing regarding their price, but sometimes you get what you pay for. Errors can be costly when considering your adherence to laws and the satisfaction of your employees.
- The IRS is watching all businesses. Sometimes they will come after you legitimately or mistakenly. Regardless of the cause, your payroll company should be able to handle the matter in a professional and efficient manner. It is their job to be familiar with federal and state laws, and be proficient in exercising opportunities for abatement. If your potential payroll provider is not aware of rules and regulations, then look for another vendor.
- Your company may want to devote one or more employees to work with your payroll service. This eliminates confusion and saves time. You should expect the same personalized service from your provider. It is difficult to work with a service that has multiple employees working on your account. Being transferred and having to explain the same scenario to various parties is not time efficient. Look for a provider that will not shuffle you around and delivers personalized service.
If you need to part ways…Sometimes the business relationship does not materialize as planned and you need to look for another payroll provider. When and if this happens, consider the following:
- You can change your provider at any time, but the most ideal time of year is the start of a new year. This way, all obligations and data falls on your former provider and you can then start anew. If a January 1 change is not possible, attempt a change at the beginning of a new quarter.
- Your new provider will suit you with the forms necessary to commence business with them. Remember that the vendor is providing a service. You should not hesitate to ask them any questions. They should be eager to answer them and assuage any anxieties you may have. There are plenty of service providers to choose from. Make the right decision for your business.