Is a Payroll Service Worth the Cost for Your Small Business?
Now is a time of year when many businesses are considering signing up for a payroll service. Perhaps you’ve been doing payroll yourself and you’re tired of it, or you’ve hired on more employees, or you’ve been using a service that isn’t up to par.
There's several things to consider right off the bat:
How many employees do you have?
How often are you going to pay them?
Do you plan to use direct deposit?
Do you want payroll taxes filed for you?
All of things may affect your payroll cost, so you want a service that is both reasonable in price and also takes care of your basic needs. Two common payroll service basics you may be charged extra for include direct deposit and taxes paid and filed automatically. You'll want to make sure these are included. Employees have come to expect direct deposit, and it will make things easier for you too - do you really want to be writing checks every month?
Taxes paid and filed for you is another big component of the payroll process. Keeping up with new laws, especially in the current political environment, can be a real challenge. Your payroll service should take care of all this for you, automatically.
If you see a price from a payroll company that seems too good to be true, be sure it includes these essential services. You don't want to pay for payroll only to wind up doing some of the same work you were doing before, or having to pay a bunch of extra fees.
One common cost with payroll is typically processing and preparing W-2 and 1099 forms, so keep this in mind.
To figure out how much you might have to pay for a payroll service based on how many employees you have and how often you pay them, visit our payroll pricing calculator.