Payroll service providers, or payroll service bureaux, are accounting companies that take care of payroll issues – i.e. the financial records of salaries, deductions, bonuses and so on – for other businesses.
Why Use Payroll Services?
Reports Fortune Magazine, just over 40% of American small businesses make use of payroll bureaux. This is because small business owners often feel their businesses aren’t large enough to warrant employing qualified personnel full-time to deal with payroll, but yet don’t have the time to deal with payroll themselves. Engaging the services of a payroll service provider frees up time for the small business owner or franchisee to focus on the day-to-day management of the business, whilst providing peace of mind that their legal and tax obligations as an employer are being correctly dealt with.
Finding Reputable Payroll Service Providers
This is the crux, since outsourcing to dodgy payroll bureaux will leave you high and dry! Follow this good advice:
- Get a referral from someone you trust, such as your accounting officer, attorney or tax consultant
- Or source referrals from similar small businesses in the area in which you operate
- Look for a payroll service provider who has direct experience with your business area • Research to see what other people are saying about them via online forums – is it all good or all bad?
- Find out if their software is compatible with your own and how they back up your data
- Investigate how they charge for their services and how their fees stack up against the going rate
- Don’t be fooled into paying for more services than you actually need!