How to Choose a Payroll Company

Outsourcing payroll is a good idea, whether your business employs one person or over a thousand people. Using an external company can help ensure you do not make costly mistakes, and it will help you manage to get your workers as well as the Internal Revenue Service (IRS) paid on time. However, if you do not know where to start when it comes to choosing a payroll company, the options might seem overwhelming. Don’t do an Internet search or pick a random firm out of the yellow pages. Instead, follow these tips.

Ask your experts. If you have a Chief Financial Officer (CFO) or Finance Manager on your team, ask them to do the initial vetting. They might have good contacts in the accounting and payroll fields who can help steer your business in the right direction.

Look for referrals. Hit up your professional networks and business partners. Find out who others are using to manage their payroll, and ask how successful they have been. You want to find a payroll company with good customer service, so if their customers are willing to recommend them, you might find a great place to start.

Find a good fit. Powerhouse payroll companies like ADP and Paychex might be a good fit if you have a lot of payroll issues that you need help with. These companies might try to bundle in other accounting, consulting and human resources services that you do not need, however. If you are a small business or have simple payroll needs, look for a local company that operates on a smaller scale.

Interview and ask questions. Have your finance or accounting team make a list of exactly what your business needs from a payroll service, and get quotes from companies to choose to check out. Talk to the team members who would be handling your account, and get an idea of whether they would be easy to work with.


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