Payroll is a crucial part of owning a business. It can cost you if you do it wrong. The IRS penalizes businesses that incorrectly calculate their payroll taxes. Businesses should consider varying salaries, benefit contributions, shift differentials, and other elements when paying employees.
However, it is an overwhelming task, even for a small startup.
Businesses can seek outside help for payroll services, but it is essential to determine that you find an experienced, capable, and reliable company. If you have considered letting a dedicated company manage your payroll, ask these five things to look at when researching your options.
First, Customer Service
We will look into everything, but we will start with customer service. Businesses do not have off-time; they operate continuously. So, your payroll provider must be the same. What if you have a sudden question that could solve an urgent issue but no expert to help you?
We need not discuss the repercussions. Problems and queries can arise at any time, and you need a company providing 24/7 support every day of the year.
Additionally, confirm that the company you choose has a single point of contact for customer support. With it, you will save time and trouble because your contacts will know everything about your business.
Now, to the Technicality: Do They Use Up-to-Date Technology?
Technology keeps evolving, and you need a payroll provider updated with the latest trends. Consider reloadable debit cards, direct deposit, and physical checks are some options when seeking a payroll service provider.
Look into the software they use and how user-friendly they are. We recommend choosing one that uses cloud-based options as it makes tracking and updating important information easy wherever you are with any computer connected to the internet. You won’t need to submit requests traditionally and wait days for them to process.
The Safety of Your Business and Employees’ Information Matters Most
Allowing an outside company to handle sensitive data can be an intricate choice. You may have heard of many breaches and crashes in the news. You wouldn’t want that.
Hence, look for a company that provides 24-hour security and a comprehensive disaster recovery system to prevent data breaches and other security issues.
Will They Take Responsibility for Penalties Your Business Incurs from Inaccurate Filings?
Did you know the IRS issued $4.5 billion in penalties to businesses for incorrect payroll tax calculations in 2013? Yes, penalties can be high and unnecessary. Not all errors are by businesses – some are made by professional payroll companies.
All professionals promise accuracy, so look for companies that are not empty vessels. You need a payroll service provider who pays for their errors instead of redirecting all penalties to you.
P.S. A company that pays the fines incurred from their mistakes will work smartly and avoid making any mistakes so that they do not have to pay from their earnings.
What Else Can They Do Apart from Payroll?
Although many payroll providers provide other services like HR service, inquire if they provide other business solutions to help your business’s management and growth.
Your business, just like any other, requires insurance, employee benefits, payment processing, technology, and loans along the way. Finding a company that offers all these can streamline your business.
Takeaway
There is a lot for your business to consider when choosing an outside payroll service provider. Take the time to research different providers and ask the right questions to determine a company that addresses all your needs.