Those who own a small business realize that many headaches can be avoided by outsourcing certain areas of the company. HR is a nightmare for many companies especially when staff is small while a full time HR salary would be crippling. Payroll is very much the same as miscalculations can lead to distrust among staff. There are considerations to pay attention to before outsourcing your payroll and they are as follows.
The smaller a company is the less of a need for a payroll company that they have. The founder will generally have a bookkeeper or handle the payroll themselves. As the company starts to grow the founder will be going in more directions with more responsibilities. Staff simply is not going to sit by while they checks are a day or two late because the boss didn’t get around to signing them. If a company is expected to grow a payroll company will be an investment for the future with a smooth transition before the company grows too much.
The fees that payroll companies charge are extremely fair for the most part depending on the industry that your business is in. Riskier businesses like gambling or nutritional non-FDA approved supplements might have larger percentages charged to them. Take the time to talk to a few companies to see their processes and fees to see how the match up. Ask to talk to one of their happy clients as well as many sales people will oblige to get the deal done.
The staff that you have are going to want things like direct deposit as well as automatic withdraw for optional health benefits. Allowing a payroll company to handle this could not be more important as making a mistake with someone’s health coverage could have negative consequences in the case of an emergency. Worrying about other things like what office furniture should be bought from Overstock or keeping staff happy is what a founder should do rather than spend hours calculating pay as well as cash flow.
As you can see a payroll company is the way to go for founders that already have enough on their plate. Look into one of these companies if you are already having issues with payroll.