It is said that if you love your job, you'll never work a day in your life. That's all well and good, but even if the employees of your small business end up never working a day in their lives, they sure as heck want to get paid every two weeks of their lives. Here are some tips for making payroll processing a little less of a hassle.
How Complicated Is Your Payroll?
First of all, you need to take a good long look at your company and see how compensation is handled, even to the point of who is full-time, part-time, or contractor/freelancer. Does your company offer any benefits such as health insurance, retirement funds, or profit-sharing? The less complicated your payouts, the more options you have, as seen below.
DIY or Outsourcing?
When it comes to payroll, the biggest question you face as a small business owner is whether to outsource your payroll or do it in-house. There are many payroll services for small businesses out there, all offering varying degrees of help. If your company only has a handful of employees (no more than, say, a dozen), you may want to consider having someone on your staff handle payroll, most likely whoever handles human resources.
I Got This.
If you’re doing payroll in-house, then get your hands on some reputable software. Quickbooks, Intuit’s accounting software, offers a payroll option. And there are other reputable accounting packages that feature a payroll module.
But bear in mind, whether you go with one of the big boys or economize by purchasing something cheap like Steve’s Sudoku, Kitten Picture Generator and Payroll Software Bundle, you’re ultimately responsible to the government for the accuracy of your employee data and taxes paid. Make sure that the money you save by doing it in-house doesn’t get burned up in penalties.
If you have a small company with straightforward pay and not many extras, consider the DIY route.
Let Someone Else Do It
Check with the bank that handles your small business’ money. Some of them offer payroll services as well. It’s a neat, tidy solution that keeps all money matters under one roof, so to speak.
You can go with one of the big boys in payroll processing, like ADP for example. Though well known for its operations with larger companies, ADP is breaking into the small business market now.
Or, if you don’t want to go the Bank or Big Guy route, there are numerous smaller payroll services out there. The choices are vast, and you can come down with a case of analysis paralysis trying to decide which one to go with.
Some services like Intuit have options where you can do some of the work in-house and let them handle other aspects of payroll. It makes for a good compromise.
You Get What You Pay For
You have to spend money to make money sure, but sometimes you have to spend money in order to prevent you from paying out even more money. Let’s put it this way: a lot of tax prep companies say they’ll stand behind you if the IRS decides to audit you. Your payroll processor should do something similar if errors are made and penalties get levied against your business.