Choosing the Right Payroll Service Provider
You may have come to a time in your small business where you now need to run payroll to pay your employees or yourself. And maybe that is why you are here – You are looking into your payroll service provider options so that you can run payroll accurately and with ease.
Good, we have some tips on how to choose the right payroll service provider.
But first, let’s cover the basics.
What is payroll?
We are sure you know what payroll is. It is how you pay your employees (duh), but did you know everything that actually goes into running payroll besides just paying your employees?
- Filing employment taxes
- Tracking worked hours
- Calculating wages
- Withholding taxes and other deductions
- Paying government employment taxes
- Quarterly Filings – 941’s
Sounds a lot more than you originally thought? Yep, for this reason many business owners end up saying F-it and find themselves a payroll provider, which can also be a huge time saver, leaving more time to work on more important aspects of your business.
So, when looking for the right payroll service provider for your business, you will want your payroll processing to be:
But some things that tend to be overlooked when choosing a payroll provider is a company that will not only run your payroll accurately, but also work closely with your accountant.
Why should your payroll provider work closely with your accountant?
Good question! Not many people realize how integral payroll is when it comes to accounting and tax planning. For that reason, it is best to work with an accountant backed payroll provider.
- Payroll can be a huge part of tax planning – That’s right! Depending on your tax filing status, payroll can be a main tax saving tool used during tax planning. Timing is also a huge factor, so if you did your tax plan with your accountant and decided to use a certain tax credit, but your payroll company already applied one through your payroll, you can miss out on a credit that could have been more beneficial and overall saved you more money. This is also something hard to go back and fix, so it is best to use someone who will get it right the first time.
- Payroll affects your bookkeeping – To complete your bookkeeping it is necessary to gather all payroll statements. This task may be simple, but it can add up, especially because most accountants bill by the hour. By having your accountant as your payroll provider, they already have your statements, which means they are spending less time on your books. Meaning, in the end you will save your business some money by bundling all your services.
- Payroll backed by accountants means you never have to worry if you are in compliance with tax laws and regulation – well because it is accountants’ job to stay updated! So, when there are updates to any payroll tax laws or regulations you will have confidence that your payroll is complying. Saving you from paying hundreds in unnecessary fines each year. Remember unnecessary expenses take away from your profit – and as a business owner you want to save every penny you can!
Therefore, working with a full-service accounting firm comes in handy. They are the ones doing your bookkeeping, tax planning, and running your payroll – they know the ins and outs of your business and have full knowledge to guide you in running a tax and profit efficient business! On top of that it is just plain easier, you call once office for all your business needs!
Download our checklist – 7 important questions to ask when searching for a payroll provider.
This way you will know everything you need to know to make the best decision for your business and choose the best payroll provider for your needs.