Tips to Consider for the New Year
Author: Keith Huggett
How do you choose your payroll provider? To begin with you should start by knowing exactly what services you are going to need throughout the coming year. Are you expanding your business? How many full-time, full-time equivalent, part-time or contract employees will you have on your payroll? How often will you be paying them? Will anyone be getting a bonus this year? Will you need human resources services? Will you be offering 401(k)s or other deductions? Sounds incredibly complicated doesn't it?
When it comes down to it, your payroll service should provide 3 basic services for you:
- Pay your employees on time.
- Pay your payroll taxes on time.
- File your payroll tax forms on time.
Some additional services that your payroll service can provide for you, most likely at an additional cost include:
- W2 forms
- Direct deposit
- Online pay stubs
- Online time tracking
When you begin your search for a payroll service, conducting your interview is crucial. Here are some critical questions to consider before you make your final decision:
- What is the turnaround rate?
- If the payroll service makes a mistake, who is liable for it?
- How long does it take to fix a mistake?
- Are there additional charges for adding or modifying employee payroll?
- Does the annual fee change after the first year?
- How often are reports sent out?
- Does the payroll service offer retirement plans?
- Does the service integrate with your accounting software?
- What back office software does the service use?
- What are the hours of operation and the means of customer service?
- Will you be assigned a service representative or will you be working with someone new each time you make contact?
- How often will there be communications from the payroll service?
After deciding on a payroll company, you should set up a schedule determining when you will check in with the service and how often you will get their reports. Keep watch on your bank statements and make certain there aren't any drastic changes once the payroll service begins.
The only way to be certain that you are happy with a payroll company is trial and error. You need to test the waters. If you have any questions about payroll, the specialists at The Tax Office, Inc., would be happy to provide the answers. The Tax Office, Inc., is a full service tax, bookkeeping, payroll, and tax representation company.
