Whether you have one employee or hundred employees, as an employer you are responsible for setting up and running an efficient payroll service system. However, payroll is a complex process including careful attention to tasks involving pay date and IRS. It is important to choose a payroll processing option that is suitable for your business needs and requirements. Here are six important steps towards choosing and selecting a payroll processing option.
1. Understand Your Business Needs for Payroll
The first and foremost step in deciding a payroll processing option is to assess and understand all the tasks involve in processing payroll and how they may relate to your business. Payroll service is more than simply issuing paychecks to your employees. In fact, it is far complex and sophisticated than that. In addition to issuing paychecks in a timely manner, you need to set aside money for taxation purposes and make those periodic payments to the IRS and federal, state and local taxing entities. If these payments and associated reports are not submitted on time, you are subjected to fines and penalties.Click here to read an interesting post about payroll fraud prevention.
2. Consider Influencing Factors on Payroll Service
There are several options when it comes to payroll service such as using software, hiring an external contractor or doing it yourself. But before you can choose that, you should consider the following factors.
- How many employees do you have and is there a potential for expansion? How many employees do may have in a year or so?
- Are you knowledgeable about payroll procedures? You need to be well versed in the subject to do it yourself and if you are not you may need to hire someone.
- Do you have accounting software you can link your payroll software to? If you are using accounting software such as QuickBooks, you can purchase a payroll service add-on and do the payroll online.
3. Explore Available Options for Process Payroll
There are three options for processing your payroll, which is a complex and time consuming procedure. You can do the payroll yourself using payroll software as long as you can keep to due dates, tax rates and withholding. The second option is to use an outside payroll service which can process payrolls for you. There are online services available as well. They have different rates depending on the number of employees. The last option is to use a local bookkeeper who can do your payroll.
4. Compare Payroll Processing Options
There are various factors to consider when comparing the options so that you can choose the right payroll service. You need to evaluate the charges of the payroll processing companies. If you have few employees, it may not be worth the cost. Consider the services you want from the payroll company or software, as price is related to the features. You should always research the reputation and reviews of the company or software you choose so that you are not an experiment.
5. Document Employee Information
It is important to input or provide accurate information of your employees for correct payroll processing. You need to set up a pay-period, track employee hours, determine deductibles and other business variables.
6. Choose the Payroll Processing Option
Once you have done your research and are clear on your business needs, you should choose your payroll processing option accordingly. Ensure to weight pros and cons of each option before taking a decision as payroll service is an important part of any successful business.
You can find more information on: www.payrollserviceaustralia.com.au on selecting the best payroll processing option for you.