Even a company with fewer than five employees can benefit from outsourcing its payroll. But before you hire a payroll service, take these smart steps:
- Check out the service's reputation. Ask for references from clients, accountants and bankers.
- Ask about the specific services available. Some companies help with payroll deductions and direct deposits.
- Make sure the service knows about all the federal and state government requirements and regulations. Good services give you brochures to keep you informed.
- Rates are based on your number of employees and how often they're paid. It costs more to handle weekly payrolls than biweekly ones.
- Still hesitant? You can handle payroll yourself with special payroll software, but then it's your responsibility to keep up with changing regulations.