Subscribe to Entrepreneur for $5

Should You Use A Payroll Service?

When you're trying to decide if you should hire a payroll service, your size should not be a consideration.

Opinions expressed by Entrepreneur contributors are their own.

Even a company with fewer than five employees can benefit fromoutsourcing its payroll. But before you hire a payroll service,take these smart steps:

Check out the service's reputation. Ask for references fromclients, accountants and bankers.

Ask about the specific services available. Some companies helpwith payroll deductions and direct deposits.

Make sure the service knows about all the federal and stategovernment requirements and regulations. Good services give youbrochures to keep you informed.

Rates are based on the number of employees you have and howoften they're paid. It costs more to handle weekly payrollsthan biweekly ones.

Still hesitating? You can handle payroll yourself with specialpayroll software, but then it's your responsibility to keep upwith changing regulations.

Entrepreneur Editors' Picks