According to the National Small Business Association, about 45% of small businesses outsource their payroll. If you are in the 19% that currently manage it internally or are looking to add employees soon, you’ll want to learn about a payroll service.

This service can make managing your business finances much easier. Let’s take a look at what a payroll service is, how it can help you, and how to choose the perfect provider.

What Is a Payroll Service?

If you have employees, you obviously need to pay them on a regular basis. This is a fundamental part of the employer-employee relationship. However, it comes with a variety of details that need to be addressed.

These details include things like dealing with taxes and keeping accurate records. Mistakes in these categories have the potential to create serious legal problems. Luckily, a payroll service takes care of these details for you.

Different payroll services handle different levels of complexity. Sometimes a payroll service provider will deal with only a few tasks, leaving the others to you. However, some take care of all aspects of payroll for your business.

Even the way in which payroll services providers operate differs between options. Some are direct and only cover the essentials, while others are more involved.

For example, some payroll service providers are essentially software programs that use calculations and automated sequences to handle everything you need. Others involve a dedicated business with individuals focused on nearly every aspect of your payroll management.

What Services Are Available?

Different providers will offer different services. However, there are some standard options that you should consider.

To start with, your provider should complete payroll calculations. This will include determining wages as well as tax withholding. If an employee is subject to garnishments or other deductions, these will also need to be withheld.

The processor will pay and distribute earnings based on your preference. You should be able to choose from paychecks, direct deposits, or pay cards.

The provider will submit payments for tax withholdings. Some also take care of other tax filing needs, such as preparing W-2 and other forms.

Most providers also create detailed reports about their payroll operations. This could include wages paid, hours worked, and taxes withheld. These reports can help you make important business decisions in the future.

Some payroll service providers also assist with compliance. At times, there are changes to wage and tax laws that could affect how you do business. Your provider should be able to keep you up to date with regulatory changes.

Benefits of Outsourcing Payroll

The biggest benefit for most business owners is that outsourcing payroll frees up your time. Instead of handling every detail of payroll on your own, someone else takes care of it. This means that you don’t need to spend much time at all on it.

By doing this, you have more time to devote elsewhere. This can allow you to complete other tasks or even work to expand your business.

In addition, outsourcing payroll guarantees that it is done right. Many business owners find payroll a bit confusing. There are many calculations, deadlines, and legal aspects to worry about.

By having a payroll service provider take care of it, you know that professionals are taking care of the details. This means that you can rest easy knowing it’s done correctly. Plus, having it done correctly minimizes your liability concerns.

One of the other benefits of working with a dedicated company is that they can consult with you about all things related to payroll. This can help you streamline your processes and save money. For example, by working with Employer Solutions, you could save up to 30% off of your payroll costs.

Choosing the Best Payroll Service Provider

There is a wide variety of payroll service providers out there. But you need one that will work well for your business. Not every payroll service provider will perfectly match every business.

Finding the best payroll service provider for you will be a process. This process starts by narrowing down the ones that work with businesses of your size. If your business is too large or too small for a company to handle, the relationship will not work out.

A provider that has experience working with small and medium-sized businesses will know how to handle your payroll efficiently. You can also ensure that they understand you and will take care of your needs.

In addition, a provider should handle the tasks you are looking for. As mentioned before, some providers only take care of part of the payroll. For example, they may do the calculations, but leave you to actually write the checks for your employees.

It’s usually easier for business owners to work with a full-service payroll provider. This way, the process will be streamlined, making everything easier and understandable for both you and your employees.

If you want to make your life even easier, you should consider working with a Professional Employer Organization (PEO) that handles other related administrative tasks, and let Employer Solutions help you determine the best fit for you and your employees without compromising service or coverage. For example, they can handle Workers’ Compensation, Benefits, Governmental Compliance, Risk Management, Human Resources, Affordable Care Act (ACA) Compliance, and so much more. A Professional Employer Organization (PEO) can even help shield you from Workers’ Comp audits and provide payroll tax liability protection.

Going this route will help ensure all of your bases are covered correctly and in a way that can save you money.

Find a Payroll Service That Works for You

Working with a company that offers payroll services can be a game-changer for your business. You’ll save time and money while guaranteeing that payroll and other related tasks are taken care of correctly. Just make sure to find a payroll service provider that will custom tailor their payroll services, that will meet your needs, and exceed your expectations, meet while providing a superior experience. Why Employer Solutions?  Payroll, it’s what we do best… So, you can do what you do best… Run your business!

Request a free quote from Employer Solutions today!