Running payroll is one of the most time-consuming tasks for small business owners. But an excellent payroll service can help make things more accessible so you can focus on more important matters. The best payroll services offer a range of features at competitive prices and provide a great customer experience. To help you find the right payroll solution for your business, look for online reviews from similar-sized companies and independent contractors.
Cost
As with any business solution, cost is a significant concern. Finding the best payroll services for small businesses, you can afford while ensuring it covers all the payroll-related services you need is essential. Many services charge a flat base fee, while others may charge by the pay period or month. Depending on how often you run payroll, this could significantly affect your overall costs. Look for a service that offers all the essential features, such as filing taxes, sending forms to employees, and automated direct deposits. Some services provide HR and benefits management tools, which can be helpful for businesses that have long-term hiring and growth goals.
Additionally, it’s beneficial to find out whether the provider has experience serving clients in your industry or sector. For example, if you operate a restaurant, you’ll have unique needs requiring special payroll filings and taxes. Ensure your chosen provider is familiar with those needs to provide accurate and timely services. Remember that 32% of small business owners say they wish they spent less time running payroll, so finding a service that saves you valuable hours means more money for your rad ideas. With some research and a suitable checklist, you can choose the best payroll service to help you focus on all the other excellent parts of being a small business owner.
Features
The best payroll services have a wide range of features. These include direct deposit, check printing, year-end tax filing, and pay stubs available through an employee portal. Others may offer additional services like 401(k) management and alerts. You’ll also want to look at how easy the software is and if it integrates with any other business apps you have or plans to use. Another important feature is security. Your employees’ sensitive information, including Social Security numbers and tax information, should be securely stored by your payroll service. Ask each provider how they hold and protect this data and what steps they take to secure it from hackers. Some payroll companies have special services for niche businesses, such as nannies, caretakers, and churches. These services often have different rules and regulations you must comply with. Look for a provider offering this specialty solution to help ensure you’re always compliant with the law. Lastly, consider whether or not the payroll company has experience working with clients similar to yours. This can give you peace of mind that they understand your industry and can answer any questions. It’s also worth asking about any other industry-specific needs you might have, like time-tracking features for a restaurant or the ability to import tips for a bar or coffee shop.
Reliability
The best payroll service for small businesses is one you can trust to get the job done. Ensure you select a provider with strong internal controls and ask about the frequency of audits and their results. Also, determine whether staff members are CPAs or have other professional certifications. If they do, ask to see their credentials. Choosing the exemplary payroll service for your small business can save you time and money and free up resources to focus on more critical aspects of your company’s operations. The right solution can help you ensure that your employees are paid correctly and that all tax withholdings, deductions for health insurance, workers’ compensation, garnishments, and other obligations are taken care of correctly. If your business has many hourly or salaried employees, consider choosing a service that integrates with time-tracking software or offers an employee self-service portal. Suppose you have a lot of contractors or 1099 employees. In that case, you might choose a service that provides an option specifically for them. Finally, consider looking for a scale service to accommodate your growing business. Some services may be unable to handle significant growth in your business, and if they can’t, you might need to switch providers at some point in the future.
Customer Service
You’ll want a payroll service with a strong customer support team. Look for a company that offers live chat, email, or phone support. Try calling at different times of the day to see how many employees are available and how quickly they answer. Also, ask for a list of customer references. The best small business payroll services offer a range of features, including automatic payroll calculations, direct deposit, tax filing, and time tracking. Some also provide employee benefits, like health insurance and retirement plans. Look for a payroll service that can accommodate the type of pay structure your company uses, such as hourly, salaried, or commissioned wages. Also, choose one that can handle your state’s wage and hour regulations. Finally, check how the provider encrypts data and protects privacy.
