If you’ve ventured from solopreneur to employer, you may want to consider contracting with a payroll service to handle your taxes and paychecks. Even if you have only one employee, the time you spend figuring out deductions, tax due dates and the proper forms could be better spent seeking new clients or selling more products. Here are three questions to ask when choosing a payroll service for your company.
1. What services do I really need? Payroll companies offer packages that range from $19 a month up to over $400 a month depending on the level of service provided. Before signing up to the platinum package, check and see if you really need it. Maybe you’re comfortable doing taxes and only need a paycheck service. It could be that you want to be completely hands off and want the payroll service to automatically fill out the w-2 form, send paychecks and file taxes on your behalf. Whichever package you choose, make sure it fits your business.
2. Do I know anyone else using a payroll service? This may be the time to call on your business owner colleagues for a recommendation on which service to use. Ask specific questions about the quality of the services provided, whether an upgrade was necessary and even how the company handled any problems. If you’ve found a company that you think would meet your needs, don’t be afraid to ask for referrals and then actually talk to their customers. Picking the right service could mean the difference between peaceful nights because a job was well done and sad days because of all the tax fines you owe due to mistakes.
3. How’s the back end? This question encompasses a couple of things. First, see if you are able to test drive the back end of the payroll processing software. Make sure that the platform for entering your employees’ information and transferring data to the company is something easy to understand and comfortable to use. Second, get a clear understanding of how the company keeps data safe. You will be handing over social security numbers, salary and benefits information and other identifying details. Make sure the company you choose has state of the art security to keep you and your employees safe from identity theft.