Payroll can be difficult and time-consuming. Getting it wrong can lead to compliance issues and hefty penalties. But if you sign up for a payroll provider, you don't need to worry, right?
Unfortunately, it's not that simple. While a provider will take care of processes for you, it's your job to find a company or software that meets your business needs.
To start, make a plan. Map out your business and a one-year trajectory. Consider how much you expect your company to grow and whether you'll need to hire new employees. And then flesh out the details:
- Will you hire part-time or full-time?
- Do you offer deductions? 401(k)s?
- Are any of your current employees due for a raise?
- Do your employees receive tips?
- Are they part of a union?
All of these factors influence your payroll provider decision. Special circumstances like tips and unions require more complex software. Look for a company who has experience in the areas you need covered.
Once you have an idea of your business trajectory and the services you need, it's time to scope out providers. You can start by getting referrals from people you know. From there, check with local businesses similar to yours to see what payroll provider they use. Finally, look into what people are saying about the provider online.
Payroll service providers will be listed and ranked on sites like the Better Business Bureau (BBB) and consumer reports like Dun & Bradstreet. For payroll software, review websites will have a wealth of information from both experts and everyday users. G2 Crowd is one example.
When it comes time to choose your payroll provider, check that the services they offer match your business's needs. You might want to have services such as:
- tax forms (W2, 1099)
- paycheck printing
- direct deposit
- time logging
- online pay stubs
- analytics and reporting
Before you commit to a payroll provider, be sure to check if any other services are bundled in. Companies often sell payroll services with accounting or HR capacities. If you don't need these services, don't get tricked into paying extra. However, if you were already in need of an upgrade, signing up for a bundle could be a good deal and save you the trouble of learning how to use a separate software.
Finding a payroll provider you trust can be difficult. But let us help you start your search at Luxa Enterprises. Speak with one of our outsourced accounting experts today!