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Outsourcing Your Payroll

If handling payroll by yourself has become a hassle, maybe it's time to go with an outside service.

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This story appears in the January 2004 issue of Entrepreneur. Subscribe »

Robert Nagel was spending up to two hours each pay period doing payroll for the 20 employees of Surf Taco. "It was taking way too long, and it wasn't always accurate," says the owner of the Point Pleasant Beach, New Jersey, restaurant.

After Nagel hired an outside payroll service to process employee checks, the time he spent on the job dropped to a few minutes, and the error count fell to zero. Every Monday morning he gives information about each employee's hours by phone to Automatic Data Processing Inc.(ADP) of Roseland, New Jersey, and checks accurate to the penny are delivered the next morning. "I just tell them the hours, and they take care of the rest," says Nagel, 32.

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