Payroll Services: A Wise Solution for Small Businesses
Handling weekly, biweekly, or even monthly payroll paychecks is a great example of a task that is easily handled when a company is starting out - but gets exponentially more challenging as you add more employees. Factor in the fact that most employees want their checks direct deposited, changing employee rosters and hours, tax withholding, W-2s, 401(k)s, and complying with multiple state and federal regulations, and paycheck payroll time can change from the most anticipated time of the month to one of the most stressful. And issuing paper checks manually can be expensive. Industry experts say that it costs around $2.00 to issue a single check.
Fortunately, modern payroll service providers are able to take on many of these duties for a surprisingly small fee. Payroll services' basic duties include calculating payroll and tax obligations for each employee, direct deposit or printing and delivering checks, and providing management reports. Payroll can be issued on any schedule you choose, from weekly to twice a month to monthly.
Additional payroll-related services that may cost extra include automatic paycheck signatures, and handling of W-2s. Many payroll services now offer tie-ins with 401(k) and Section 125 mutual fund plans, allowing employees to set up automatic deductions from their paychecks.
For larger companies with more complex processing needs, some payroll providers offer HR software systems that track employee benefits information in addition to regular payroll data.
Many payroll services offer the option of filing state and federal payroll taxes for your business. This can be a valuable feature given the fact that the IRS has reported that one out of every three employers has been charged for a payroll mistake, with total penalties reaching into the billions of dollars.
Which is the best payroll service?
There are many good companies that offer basic payroll services which include direct deposit as well as paper checks. As an employer you first must decide which services you need and what you anticipate your budget to be. If you want a provider that will handle all 1099's and W-2" at year end, this will be an additional cost. Likewise if there are benefits you would like them to administer like tracking vacations, sick days, etc., this again will be an extra charge.
Look at your current and future needs. If you currently have 35 employees but expect to add 15 or more within the next two years, you would want to consider a provider who can handle 35 now and 50 in the future.
The Best Top 10 reviewed the current Payroll Service Providers and these are their findings:
- Paychex, Inc. With a wide range of services - including payroll processing, retirement services, insurance, and a fully outsourced human resource solution - Paychex customizes its offering to the client's business, whether it is small or large, simple or complex.
- AmCheck AmCheck was designed from the start to offer real solutions and flexibility to employers by offering a full suite of nationwide services including Payroll Services, Administrative Services Organization (ASO) and Professional Employer Services (PEO).
- IOI Pay Interlogic Outsourcing, Inc. (IOI) is a national and award-winning provider of payroll and employer services offering scalable solutions to enable businesses of all sizes to achieve greater efficiencies and reduce bottom-line costs by deploying state of the art technology.
- SurePayroll SurePayroll's Easy Payroll Service combines practical technology with friendly payroll experts. You can run payroll anywhere from your computer even from your smartphone with Mobile Payroll apps for mobile devices.
- Intuit Online Payroll This software package can be purchased at most stores that sell software including Amazon. Its lowest score (16 out of 20) was for methods of payment and the highest (19 out of 20 was for support).
- ADP ADP, Automatic Data Processing, (NYSE: ADP) is a provider of business outsourcing solutions. ADP offers a range of HR, payroll, tax and benefits administration solutions. This provider can handle small to large companies as well as multi-national companies.
- Onpay Payroll Center Inc was founded in 1982 with one simple goal, to provide employers with the best payroll solution possible.
- Paycom Regardless of the complexity of your current processes, they can streamline payroll and HR into one online application. Paycom's technology is propelling them to be the fastest growing payroll company in the country.
- ProPayroll ProPayroll, Inc. builds personal relationships with customers, offering customized "boutique experience" that supports their business and helps solve their unique problems. They promote incredible customer service, with real people, real contact, and real attention to needs.
- Paycor Paycor helps companies perform better with intuitive, cloud-based HR, payroll and timekeeping software. Services also include custom reporting, tax filing in every jurisdiction in the U.S., 401(k) retirement services, workers' compensation, and much more.
Taking the above 10 companies and getting a quote of a biweekly payroll for 5 employees, the lowest cost was from $125 per month to a high of over $300 per month. It all depends on the exact services your company needs. In addition to these vendors there are many other payroll services that can handle a biweekly payroll for 25 employees for as little as $125 per payday.
(See what other BuyerZone users have received for pricing on payroll services.)
Payroll is a necessary task that business owners must manage on a regular basis. Choosing the right solution can make it a much more streamlined process and free up more time for building your enterprise.Ready to Compare Payroll Services Price Quotes?