Choosing a Payroll Service for Your Company

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.

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About Dequiana Jackson

Dequiana Jackson, Founder of Inspired Marketing, Inc., helps overachieving women entrepreneurs conquer limiting beliefs and create marketing plans that win. This includes one-on-one marketing plan development, digital product creation, web design and content marketing. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog,

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  1. These are all great tips! I especially like the first one. Business owners must be crystal clear about what it takes to just have the payroll company process checks and they do their own taxes. Don’t choose that option to try and save a few bucks. Let the payroll company handle it all. It will lead to peace of mind later.

    • Sherrell, thanks for your comment. When looking to save money business owners don’t always think of what they may be giving up in terms of peace of mind and time down the road. Saving $20/month sounds good at first, but it’s probably not worth the 20+ hours someone may need to research tax laws, gather documents and fill out tax forms.

  2. Hey, great share……

    I was thinking of hiring a third party payroll service provider for my business as I know it’s really a complicated process and no mistake can be tolerated. These tips and ideas before hiring a payroll service provider is definitely going to be helpful.

    Thanks for sharing this post. Keep sharing more…
    Sutton brandonn´s last blog post ..Five ways to protect what is yours

  3. You have an excellent recommendation when suggesting asking others for reputable sources. Finding out how the company handles any problems can also be needed, as you shared.

  4. Hiring third party payroll company for your business is a good idea it will help you to concentrate more on your business development.

  5. This some really good information about payroll. My sister is thinking about opening up a bakery this fall. So, I like that you explained that she should ask around and find out what other business use for payroll.

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