When you run a small business, your time, money and resources are precious. It is no wonder, therefore, that many small business owners choose to reduce hassle by outsourcing their payroll. Payroll can be time consuming and detail oriented, so often it is much more effective to hire the pros to handle your payroll so that you can focus on running your business and doing what you do best! Here are the top 5 tips for small business employers that want to outsource their payroll.
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The best way to find a payroll service provider is by word of mouth or through referrals. Contact other small businesses in your area to find out which service they use. This is also a great way to find out if other businesses are satisfied with the service they receive from their current payroll provider to inform you as you make your decision. For any company you choose to work with, you will want reliable references that you can contact for specific information.
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Find out what kinds of services the payroll service provider offers to small businesses. You will want to know who is in charge of handling your payroll each month. Ask about their response time and if you can communicate with these individual regularly to stay up to date with the process and finances.
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In addition, it is essential that you ask about fees and additional charges. If you don’t know what to avoid, you may end up spending a significant amount of extra money on unnecessary charges that could have been prevented had you been informed and aware. Often, you will be charged about $2.00 per payroll check in addition to an account base fee, so any other charges you notice should be scrutinized and questioned before you make any agreements.
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Ask about how they handle your taxes regarding payroll. When it comes to tax payments, never assume. Find out fit he payroll service will file taxes for you or if this is your personal responsibility as a small business owner. If they will handle taxes, ask if they will assume responsibility for any errors or misfiling. If they do not, ask if they can still provide you with help and guidance when tax season rolls around so that you are prepared for the year ahead.
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Finally, you will want to make sure that outsourcing really is the best option for you as a small business owner. If you have less than 20 employees on your payroll, you will likely benefit from using an outsourcing service. Do the math and crutch some number to compare the cost of using an outsourced service as opposed to your current in house system.
For many small businesses, outsourcing payroll can be the way to go to help manage your small business finances and reduce spending. There are so many different payroll services companies available so be sure to do your research, compare series and costs, get reviews, and consult a CPA like SDA CPA Group, P.C. to make sure you are making a wise financial choice.