Questions to Ask a Payroll Service

Questions to Ask Before Hiring a Payroll Service

Whether you have two employees or two hundred employees, it is important to have a solid payroll system to ensure timely payments to your staff. Many business owners agree that it can be a burden to keep up with payroll processing, but it is a necessary part of owning a business.

If you are overwhelmed with keeping up with your business payroll, then you might consider the benefits of hiring a bookkeeping or accounting service to assist. Outsourcing these tasks can relieve your stress and help you focus on the other essential tasks that need to be addressed.

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Hire an Employee or Outsource Payroll?

Hiring an in-house bookkeeper or accountant might be a good solution if you need support with payroll processing. But, you need to look at the overall costs of hiring an employee to see if it is worth the cost. Not only will you need to pay their salary, but there are other expenses such as benefits, office space, training, onboarding, and more. It is essential that you look at all of these hidden costs before deciding to bring another employee into your company.

An easy way to skip these extra costs is by hiring an outsourced payroll service. This solution allows you to hand off the burden of processing payroll, while still keeping your costs low. Payroll outsourcing is one of the best ways that you can free up your schedule and improve your business financial systems at the same time.

Automating Your Payroll Processing

Payroll processing is not only time-consuming, but it can also be costly to keep up with everything. When it is time to cut the paychecks, it is much more than just calculating the number of hours worked by each employee. Not only do you need to calculate the gross payment, but you also need to keep up with the current payroll taxes and withholdings. Then, these payments need to be sent to the government along with the appropriate reporting forms.

Additionally, there are quarterly and annual taxes that need to be considered, as well as the management of benefits withholdings and more. It can be a full-time job to keep up with the financial details for your payroll system!

As a business owner, there is no reason for you to spend your valuable time on this busy work. Hiring a payroll outsourcing team can allow you to transition to a full-service, cloud-based system that frees up your time to focus on other aspects of business management. You can sleep easy at night knowing that payroll is done and you don’t have to worry about the data entry and tedious work.

Instead of viewing payroll services as a “luxury,” it is time to switch your thinking and see that a reliable payroll management service could save your company thousands of dollars.

Questions to Ask Your Payroll Provider

When you make the decision to hire a payroll provider, you need to ask a few questions to ensure that the services match the needs of your company. Here are a few questions that can help you choose a provider for your needs:

  • What services are included in my accounting package? Most accountants will offer a specific scope of services included in a monthly plan. The best solution is to find an accounting team that will handle the payroll processing and the tax preparation as well. These two services go hand-in-hand, so it makes sense to hire someone to help with both. Payroll processing should include tasks such as payroll tax calculations, automated new hire reporting, deductions for benefits, tracking paid time off, and as-needed adjustments for reimbursements, bonuses, commissions, garnishments, and more.
  • How will the employee payments be sent? Make sure that direct deposit is available, as well as a check option if needed. Most employees prefer direct deposit, although some people want to pick up a printed check.
  • Is it a cloud-based system? Even though you are hiring an accounting team to manage the responsibility for payroll processing, you still need the option to see the reports and transaction details. A cloud-based system will give you access to oversee the details. But, make sure that the system uses the latest encryption technology to ensure the safety of the information. Also, the account information should be secured with firewalls and two-step authentication.
  • How much will I pay per month? Factor in costs for the cloud-based software as well as the accounting services. Make sure that you understand the payment breakdown based on the size of your company. Some accounting services charge a flat fee for the entire company, while others charge a fee for each employee. Compare these costs to the expenses of hiring a full-time accountant, and you will see that it is more affordable to outsource payroll processing.
  • How do I get started? Find out the best way to setup the system and start moving forward. During your initial conversation, you should discuss your current payroll system to find the best way to make the transition to the new system. An experienced accounting team will be able to offer the support that you need to make it as easy as possible.
  • Will all payroll taxes be handled? The simplest solution for payroll outsourcing is to hire a full-service accounting team. Make sure that the payroll service will include required forms such as W-2’s and 1099’s at the beginning of each year. Also, ask about practices that are in place to manage compliance for federal and state taxes, including payments and forms that need to be submitted throughout the year.
  • Can I see what the check stub will look like? Asking for an example of the check stub will allow you to see what your employees will receive. Make sure that the important details are included, such as deductions, taxes, paid time off, and more.
  • What is the policy for payroll changes? The hope is that all applicable information will be updated in the system before payroll is processed. But, you need to understand the policy if changes need to be made. If mistakes occur on an employee timecard, will you be able to update the system before the checks are cut? Be clear on the timeline to ensure that all employees and managers met these deadlines for each payroll cycle.
  • What are the customer support services that are offered? If you have a question about payroll or tax payments, then you deserve to have an experienced accounting team to answer your questions. Ask the payroll provider about customer service and preferred methods of communication. It is essential that you always have a reliable point of contact to call if you need help with anything for your business finances.
  • How much experience do you have in the industry? Research the accounting company to learn more about the experience of the team. Not only do you want to be sure that the company is reputable, but you should also consider the applicable experience in the payroll industry. Find an accounting team that has experience working with other companies that are similar to your business. This hands-on experience is essential to ensure that you are getting the best services that are available.

Most accounting teams will offer an initial consultation so that you can see if their services are a good fit for what you need. This consultation is a great opportunity to ask these questions so that you can learn more about the company and make sure that you are hiring the right team.

Getting Started with a Payroll Service

You will be amazed to see the many benefits that are available when you choose to outsource your payroll processing. This service is one of the best ways that you can optimize your business finances, free up your time, and improve the accuracy of the paychecks that are being distributed.

High-quality payroll processing helps to avoid costly mistakes that could add up every month. For example, if you miscalculate payroll taxes or deductions, then it could be costing your company thousands of dollars. The investment in a payroll service can ensure that you aren’t missing these important details that could be costing you money.

As a business owner, there is no reason that you should be carrying the responsibility of payroll processing. Right now is a great opportunity to outsource this task so that you can spend more time on business development and other management activities.

Are you ready to learn more about how your company will benefit from payroll processing and other accounting services? Then, you need to schedule an appointment with us at Easier Accounting. We want to make it as easy as possible to improve your business finances. So, we will gladly discuss your situation and find the right services to meet your needs.

If you have any questions or you are interested in learning more, we encourage you to call us for a consultation. We are here to help with anything that you need! Contact Easier Accounting for the best small business payroll processing service available: (888) 620-0770

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