These days, a growing number of small business owners are choosing to outsource their payroll function. But the fact that it’s a growing trend shouldn’t be reason enough for you to choose to do the same.
As we look at some tips for choosing a small business payroll provider, you’ll soon discover the many advantages that can be gained from it.
The Expertise to Save You Money & Time
When you entrust the payroll functions to an experienced professional, you’ll be reducing the risk of making some common payroll processing errors. You’ll also be removing the time-consuming process from your plate, giving you more time to focus on the money-making activities that you’re best at.
Tax laws and regulations are constantly changing, and it’s difficult for most small business owners to stay on top of them. Your outsourced payroll provider should stay current with the tax codes to help you avoid any costly compliance errors.
A Full Range of Services
A trusted outsourced payroll service provider should deliver all the kinds of services that you and your employees want. Some examples of these include:
- Individual employee tax and payroll calculations
- Automated check signing
- Check printing and delivery
- Direct deposit
- Integration with HR software systems
- Detailed reporting
Your payroll process involves some sensitive information about your employees including their Social Security numbers, bank accounts, and addresses. This data should be kept safe at all times. An external payroll service provider should use current security technology that you may not have access to, like redundant backup systems and data protection software.
From the users’ perspective, your payroll provider should offer an easy-to-use interface that you and your employees can access at any time and from any device. And since technology is forever evolving, it’s important to know if your provider will be investing in new industry-leading technologies.
Investigate The Provider’s Credentials
We always recommend that small business owners take the time to complete their due diligence when evaluating potential payroll providers. Consider the number of years they have been around, their experience especially with your industry or specific business structure, as well as their licensing.
Your payroll service provider should not only have the capacity to handle your current needs but also probably have the bandwidth to accommodate your future growth. It’s also a good idea to look at testimonials from other small business owners.