Managing payroll can be a daunting responsibility for small businesses. From reminding employees to submit their timesheets and reimbursements to making sure everything is entered into the system correctly, processing payroll can be time consuming. And when you think you’re done, it seems like it’s already time to tackle the next pay period. But working with a payroll service to automate some of these functions can put a stop to the payroll grind and make the task relatively easy – even for first-time entrepreneurs. There are plenty of options to choose from, including online and cloud-based systems, but how do you determine what works for your business?
You first have to realize that payroll is more than just issuing employee checks. A good payroll service also handles complex tax withholding across multiple jurisdictions and can help keep you in compliance with tax and reporting laws.
Considering the time involved with handling the job yourself and the large fines you could face for regulatory violations, a nimble payroll service may be one of the most important business investments you could make.
Here are four key qualities to keep in mind when looking for a payroll service.
You need your payroll to be processed accurately and on time. This means looking for a service with a proven track record. Check reviews and get referrals from other small businesses as you consider which system to use.
For reduced errors and faster processing, many online providers automatically file and pay all payroll taxes, report new hires to the government, and process W-2s and 1099s. Make sure you can easily check your records and payments.
One of the advantages of a cloud-based payroll service is the ability to access information and financial records any time you need them – enabling you to handle payroll tasks from virtually anywhere.
Internet-based systems need to be technologically dependable as well, and any vendor should follow the best practices and regulations with regards to data safety and cybersecurity.
Are your employees paying into a 401(k) plan, a profit-sharing program, or health savings accounts? Are they racking up overtime pay or earning bonuses? Your payroll system needs to be able to handle multiple transactions vital to your business and its employees. Make sure the system you choose is up to the task.
Before selecting a service, consider how flexible you need your payroll to be in terms of scheduling, disbursement methods, contractor payments, handling paid time off, calculating wages, and other details. Another feature to look for is direct-deposit. As per a survey conducted by NACHA in April, 2016, more than 80%* of U.S. workers were paid via direct deposit. The process is safe and reliable for them, and makes record keeping easier for you — no worries about forgetting to record checks or about employees losing them.
Even if your business don't need this functionality, as your company and workforce expands, you'll be better served by a payroll system that can grow with you and handle any of your requirements as things begin to scale.*https://www.nacha.org/news/new-nacha-survey-shows-adoption-and-awareness-direct-deposit-ach-continues-build
If your payroll service is clunky and complicated, the savings in time and money you were looking for might be replaced with frustration. Your payroll system should be user-friendly – from intuitive navigation to ease in finding and updating important information.
In addition, easy-to-reach, knowledgeable support should be available and ready to help you with any questions, technical problems, or other issues that may arise.
Avoid headaches by tethering your company to a payroll system that doesn't work well with others. Check to see whether a potential provider is compatible with your accounting, HR, time tracking, and scheduling software. Good integration can make administrative tasks run smoothly, freeing you to focus on the reasons you started your business in the first place.
The ability to reconcile your payroll, ledger, and bank statements on a regular basis will provide you with a better financial picture, which can also allow you to easily generate reports on employees, sales, and other data that can provide helpful business insights.
FlowRocket can provide an innovative small to midsized accounting and payroll solution, which not only guarantees a minimum of 35% in savings in the first year itself but also ensures 100% compliance, accurate payroll processing, smooth transition and much more. To learn more about how you can benefit from FlowRocket's payroll services, contact us today!