Payroll – Is Your Small Business Paying For The Right Services?
Small business owners come in many different shapes and sizes, including some who choose to have a say in every decision that is made. With that being said, how do you as the owner of a company handle your payroll needs? Do you have someone in your office who oversees the dispensing of paychecks and other compensation needs, or do you have an outside agency handling such matters?
Either way, your focus towards payroll should be one of your top missions the day you began running a business and hiring employees. Without a smooth payroll set-up in place, you stand the chance of there being problems and even moral issues in the office.
In the event you decide to have someone in-house doing your payroll, the person handling your payroll should be adept in mathematics, have an open personality, work well under stress, and have attention to detail. Reasoning includes:
Compiling and issuing company payroll obviously involves many numbers, so a mathematics background is certainly helpful. The individual should also be experienced and comfortable with using different computer programs, including Excel sheets and MS Office;
Your payroll person also should be personable, especially given the fact they will be dealing with various employees at your company. If they are not a very open person, it can be hard for them to interact with workers who need questions answered when it comes to payroll, benefits, workers comp, taxes, and more. Given there will be times when stress is inducted into the job, they also must work well under pressure.
Finally, attention to detail is especially critical in this line of work. Keep in mind that things do change from time to time, including tax regulations, health benefits, and workers comp rules. Your payroll person needs to be up to speed on the latest rules and regulations so that payroll is dispensed properly. If it is not, you and your small business could be hit with penalties and interest charges.
Seeking an Outside Payroll Service
For those small business owners who opt to outsource their payroll needs, keep in mind the pros and cons of doing such, along with knowing what you need to look for:
Less work in-house
By having your payroll outsourced, that is one major task taken off the plate of an in-house employee. Oftentimes, an individual in the HR department will be saddled with payroll, so outsourcing that need frees them up to help you with other tasks, including hirings and firings, disciplinary actions, and helping to promote the company;
Just as you would want several quotes and offers when buying products and services in your own life, the same holds true if you outsource payroll. Make sure you get quotes from several different payroll providers, along with checking their customer service, financial stability, and to see if they have any issues over time with the Better Business Bureau (BBB). If you can get a provider to do a trial run for you before agreeing to a longer-term deal, all the better;
Review the process
Another important item to remember when outsourcing your payroll needs is to review the process. Since payroll is being done off site, you do not have as much daily interaction with the person or persons handling it. Make sure that you review the process from time to time to make sure everything is in order. As noted earlier, changes to tax regulations, the workers comp system, health insurance benefits etc. can make it easy for errors to crop up. Given how you want your workers to be properly compensated, it never hurts to review the process.
Whether you go in-house or outsource your company’s payroll needs, it always pays to get it right the first time.