Running a business isn’t easy. And with all of the responsibilities that you must tend to, the last thing you want to do is handle payroll. As such, it might be wise for you to engage in payroll outsourcing.
But before you do, you need to make sure that you’re on the right track. So, without further ado, here are 7 tips for working with 3rd party payroll services.
Inquire About Available Services
Different payroll companies provide different services. Whereas some provide only tax services, others provide tax services, 401(K) services, insurance services, and more. You want to make sure that your chosen service is able to accommodate your needs.
Before signing any contracts, you’re advised to ask your prospective payroller outright. While your present needs are most important, it’s a good idea to think about the future as well.
For instance, you might eventually start providing 401(K) benefits. Ideally, your payroller will be able to take on that responsibility when the time comes.
Ask About Expenses
Obviously, you’re going to have to pay your payroll company. The question is: how much? These figures can vary wildly based on a number of factors, so you want to be sure of what you’re getting into financially.
Some payroll companies will charge a flat rate based on a certain number of employees. Others will charge a per-employee rate.
There are also certain fees that you’re going to want to look out for. For instance, one payroll company might charge an additional fee for direct deposits while another might charge an additional fee for updating employee tax info.
Just be aware of the various costs prior to engaging in an agreement. You don’t want to get stuck in a situation where you’re hurting your business financially.
Get a Feel for Customer Service
When it comes to outsourcing payroll, customer service is of utmost importance. After all, you’re dealing with sensitive financial matters here. You want to ensure that you’re kept in the loop as much as possible.
We advise calling and emailing your prospective payroller a few times prior to striking a deal. Make sure that your calls and emails are answered promptly and professionally. Make sure to ask a few questions as well, as you want to ensure that you’ll be receiving adequate expertise.
- Discuss Liability
Your payroll service will likely be responsible for filing your taxes. In all likelihood, it will do so correctly. That said, mistakes can be made, putting you in a position in which you could receive penalties from the IRS.
To avoid this, you want to be sure that your payroll company accepts liability for its mistakes. Ensure that this language is included in your contract, as you don’t want to lose substantial amounts of money over something that wasn’t your fault.
3rd Party Payroll Services Can Make a Substantial Difference
If you want to lighten the load of running your business, you would be wise to make use of 3rd party payroll services. Just make sure to utilize the tips reviewed above, and you’ll be golden.
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