3 Ways Outsourcing Payroll Makes You a Better Leader
As a leader of the company, there are many things you want to handle yourself. For many it is a point of pride. For others, the reason for doing everything themselves is because they simply do not trust anyone to do as good of a job as they can do.
No matter what the reason, there is a very strong possibility that by doing so there are other areas of your business which are suffering. The reason for this is because you will not have the time to do many of the things you need to do to advance your business. Rather you will spend all of your time handling things which can easily be handled by other people.
The true sign of a good leader is someone who has the ability to delegate effectively. One of the areas which should always be handed off is payroll services. While it feels good to sign all of the checks yourself and figure out how much everyone is getting paid, it can lead to costly mistakes as well as tax problems which will land your business in hot water. What kind of a leader will you be if you end up costing your business more money because of pride or stubbornness?
Provide your employees with direct deposit
One of the things which more employees are looking for through their workplace is the ability to receive their checks electronically. There are a few different reasons for this. Some enjoy getting their check a little early. Others simply do not like having to make the mad rush to the bank on Friday to deposit their check. It is a matter of convenience which your employees will enjoy and it is a service offered by small business payroll services.
Stay current with the laws
There are a few things which make you a good leader within your company. Knowing all of the payroll laws which have recently been passed by the government is not one of the things which will help to make you a better leader. Any payroll service you hire will make it their business to know all of the laws which are current and what they will need to do in order to maintain compliance for your company. By doing so, your company will be able to stay clear of any legal entanglements which are caused by not knowing the law.
You get to do your job
Being a great leader means being able to concentrate on what it is you do best. Show your employees how they can run a successful business by doing so yourself. When you do not have to concentrate on things like payroll, it is possible to move on to more important things like meeting with clients, sitting in on important meetings and more. You will be able to spend your time doing what you got into business to do rather than spending your time doing what someone else should be doing for you.
About the Author: Resource Nation provides free tools, tips, and purchasing advice for business owners and entrepreneurs in over 100 business categories ranging from payroll services to credit card processing. Whether it’s connecting businesses with local and national pre-screened vendors, or offering easy service comparisons on small payroll services, Resource Nation empowers business decision makers by providing the information they need to make smart choices.
Want to be our next guest author? Click here for details…
Choosing a Payroll Provider — Five Key Questions to Ask Yourself
There comes a period in every small business owner’s life when they start thinking about moving payroll from the kitchen counter into the hands of hired professionals. Today we have Scott Brandt, VP of Marketing, SurePayroll providing his top questions to ask before you outsource the task.
Shopping for payroll, like anything else, requires a little research.
Before you commit to a payroll provider, consider these five questions.
1. What type of service will address my needs best?
Online payroll has been available for nearly a decade. This service usually allows you to enter payroll hours from one Web site and will make all payroll tax calculations and deductions. Paycheck stubs and W-2s are available for employers and employees on a secure Web site, and direct deposit is usually included. Some will file and pay payroll taxes on your behalf.
With traditional payroll services, you phone in or fax your payroll information every pay period. These methods require you to establish a set time every pay period for you to submit payroll. Traditional services also calculate taxes and other deductions and offer various payment methods for employees. Like some online payroll services, traditional services often file and pay your payroll taxes.
Payroll software, like online payroll, allows you to enter payroll information at your convenience and will perform necessary calculations. However, you are responsible for debiting your bank account, printing checks or arranging for direct deposit and handling IRS penalties and notices.
2. What are my biggest concerns about outsourcing payroll?
Most people agree that payroll would be a cinch if it weren’t for payroll taxes. If you don’t want to stay on top of strict IRS rules and regulations, choose a payroll service that will do the work for you.
Additionally, if you’re considering software or a phone/fax solution to process payroll, make sure they offer direct deposit. You’ll save your employees time, and you won’t have to be in on payday to hand out checks.
Although you probably won’t think of it immediately, online access for pay stubs and payroll records can save hours of tedious work. If an employee has ever asked you to provide the last six months worth of pay stubs for mortgage purposes, you know the advantages of offering employees self-service payroll accounts.
3. What happens if something goes wrong?
If it’s important for you to be able to speak with someone on the phone when you have a question about payroll, ask if they offer live, U.S.-based customer support. And if you’re one to work on Saturdays, you’ll want to make sure someone will be available to assist you then.
Phone support can be a lifesaver if you receive IRS penalties and notices. It’s not uncommon for businesses to receive these penalties or notices in error. If you don’t want to be on the phone directly with the IRS resolving the issue, make sure your payroll service has tax experts who will work with the IRS on your behalf.
Fitting in time for a call about a small payroll question is not on most small business owners’ lists of top priorities. Make sure your payroll service offers a comprehensive, easy-to-use online help database.
4. How will outsourced payroll help me stay in compliance?
Many services calculate payroll and provide direct deposits but don’t handle payroll tax deposits or filings. They may say they assist with those tasks, but if you want the most inconvenient and riskiest part of payroll off your plate, make sure your provider will deposit and file federal, state and local payroll taxes on your behalf.
If payroll taxes are the riskiest part of payroll, new hire reporting is the second. In a recent poll, 95 percent of business owners were not aware that federal and state law mandates that all new hires be reported to the state in an appropriate amount of time. To alleviate worries about compliance, select a payroll provider that reports new hires automatically.
Some payroll services offer more than payroll compliance. For example, your business must post the appropriate labor law posters. If you don’t want to worry about costly fines, ask a potential provider about labor law posters and poster updates.
5. Is it worth it?
Regardless of the method you choose — phoning-in, faxing, or entering payroll online or into software —outsourcing payroll is always faster and more reliable than doing it by hand. Homemade spreadsheets are useful, but a transposed number or erroneous formula can translate into a payroll nightmare as you try to rectify an employee’s pay and amend taxes.
If there’s one thing you can always count on changing, it’s tax laws. And they don’t always change at the beginning of the year — the recent stimulus bill changed income tax laws on April 1, 2009. Outsourced payroll, even payroll software, spares you the burden of keeping up-to-date with ever-changing tax tables.
Bottom Line
The bottom line for outsourced payroll is the same as other outsourced services: You can’t put a price on more time to grow your business and service your clients. That’s not to say the most expensive payroll service will provide you with the most free time. For example, traditional payroll services are usually the most expensive, yet they require you to set aside time during normal business hours to fax or phone in payroll. Likewise, the cheapest provider may save you money but will likely leave you scratching your head trying to decode payroll tax and compliance laws.
Look for the provider that meets your specific needs. Don’t pay for a service that charges for extras you won’t use. Likewise, don’t try to save money by selecting a service that meets just most of your needs. When you find the right payroll service, the benefits will justify the cost.
About the Author:
Prior to joining SurePayroll, he spent 13 years with Monster Worldwide, helping build the consumer relocation division, Moving.com, as well as directing the online advertising and lead generation efforts for Monster’s family of websites. Scott holds a bachelor’s degree in marketing from Indiana University and an MBA from DePaul University.
Scott Brandt is VP of Marketing for SurePayroll, the first full-service online payroll service. Scott, an online marketing veteran, has led the Marketing team since 2007.
Want to be our next guest author? Here’s how you can…
Photo credit: -bast-
Can’t visit Small Biz Bee on a regular basis? You can stay up to date by having the latest Small Biz Bee news delivered to you for free via RSS or Email.
For exclusive Small Biz Bee content and offers, sign up for our free newsletter:
