What are the payroll processing questions that entrepreneurs need to be aware about? It’s a tricky question that can only be answered once you try to do it yourself. Some small businesses start out doing their own payroll in-house, only to be bombarded and overwhelmed of how it’s properly done.
The last thing you want to experience is screwing your books up. Committing payroll errors will cost you dearly by the IRS. It’s never too late to straighten things up when you’ve already made the wrong choices. You can still save a lot of time and money by outsourcing payroll services. But first, ask these 3 questions when choosing which service provider can meet your needs.
What payroll services do you provide?
A variety of payroll services are offered by many providers. From simple to automated payroll and tax accounting, a good service provider is an entity that’s a strong fit for your company. Some of the services than can be provided include paying employees via direct deposit, handle new employee reporting, file accurate payroll taxes, deduct benefits, including health and insurance, and others among the few.
It’s important to know what you’re getting from your paid subscription. Prioritising your needs will help you know what you really want from a payroll service provider. You will then use this list as a reference when asking a provider about the services they’re providing.
What are your pricing packages?
After knowing the service provider’s offerings, which should coincide to your needs, you might as well ask about their pricing structure, particularly the service packages. Always make sure that the breadth of services in your chosen package is reasonable enough for your budget and needs. There are optional add-ons if a particular service isn’t included in their package offerings.
Pricing varies by service and the number of employees you need to employ, so be sure that your chosen provider will charge you by the month or by a particular pay period. Don’t fall prey for services that charge you to pay $400 a month on a package. There are popular and reliable payroll services out there that only charge $50 or less a month. That sure would be enough for your small business.
How secure is your service?
Sure, handing your financial records to payroll services providers can get you out of committing errors, but are you sure you’re completely safe from trouble? The challenge for you is to make sure that the services you’re going to get are safe and secure. You don’t want your private accounting information be in the hands of hackers. God knows what they’re going to do with it to your disadvantage.
Make sure that your payroll services provider makes use of the highest encryption standards available. Your entire log in and account information, including passwords, social security numbers and other identifiable information should be defended by firewalls and authentication. Backing up your accounts daily in multiple locations will also make your information available no matter what happens.
There are still many questions that you need to ask when choosing the right payroll services company. What you’ll need aside from equipping yourself with these three primary questions is your intuitiveness and curiosity. Don’t be afraid to ask. You’ve got every right to know the intricacies of what you’re paying for your business.