Payroll is critical to your business and involves several moving parts, including computing hours, withholding and paying taxes, submitting payroll tax forms, and collecting funds for retirement and insurance.
Many small businesses rely on antiquated payroll solutions to organize and track data. It’s managed across several spreadsheets before being combined to make payroll calculations. This method leaves room for errors and doesn’t make the best use of your valuable time.
Investing in a payroll provider that offers multiple features increases efficiency and accuracy. This helps to ensure that you’re paying your workforce appropriately. The right payroll software also gives you peace of mind, meets tax and labor law compliance, and provides greater control over company finances.
So, how do you determine which payroll system best fits the unique needs of your small business? Let’s take a look at the criteria you should consider when choosing a provider.
What is a small business payroll provider?
A payroll processing provider takes the guesswork out of calculating payroll. Payroll companies typically handle everything from deposits and withdrawals to new-hire reporting. They handle tax filings and distribute 1099s and W-2s. An effective provider reduces errors and gives your team more time to focus on more pressing matters.
Benefits of payroll services for small businesses
An online payroll service uses software to automate processes and offers solutions for common payroll challenges. The benefits of using this service include:
- Regulatory compliance
- Fewer payroll errors
- Reduced labor costs
- Valuable business insights from time-tracking and attendance data
- Automaticupdates for changes in pay, overtime, and employee bonuses
- Benefit fund deductions and disbursements
- Employee access to payroll, schedule, and retirement plan data
Effective software solutions integrate with other business tools, like point-of-sale and human resources, for example. Integration across multiple departments enhances transparency and enhances job performance.
9 things you should look for in a payroll service provider
Not all service providers are created equal. When choosing your provider, think about which service encompasses all of your organization’s unique business needs. Considering the following payroll features will help you find the right platform for your organization.
Select a provider that can seamlessly integrate with the business tools you already have in place. This ensures your team always has access to up-to-date and accurate information and saves time on redundant manual data entry.
Tip: Homebase payroll connects with our scheduling and time tracking tools. This means we do the hard work for you when it comes time to run payroll, saving you time and stress.
2. Full-service tax filings
Your provider should be an expert on federal, state, and local tax filing and handle all filings and disbursements. This ensures everything is on time and that you remain compliant with all regulations.
3. Capability to handle varying payment and deduction types
Every small business structures its payroll differently. Some employees collect hourly wages, while others are salaried. Your provider should be able to handle all types of pay structures.
They should also be able to process bonuses, commissions, expense reimbursements, and deductions. 80% of the U.S. workforce has their paychecks directly deposited. Make sure your payroll service can process both checks and direct deposits.
As your company grows, your business needs will change. Partner with a provider that is flexible and can grow with you, offering human resources and benefit functionalities.
5. Simplified employee onboarding
The employee onboarding and termination process can be tedious and time-consuming. Partner with a payroll and HR company whose software simplifies and streamlines this process. Data should automatically sync with your other business tools, saving time and reducing errors.
6. Employee self-service
Your employees should have access to important payroll information. From time tracking to earnings and W-2s, employees should be able to access this data with the click of a button.
Your team members are trusting you with very sensitive personal information. A security breach could compromise their financial stability and have lasting repercussions.
It is critical that you partner with a provider that considers security a top priority. Ask about the security measures they have in place and confirm that they follow globally recognized best practices.
8. Customer service
Inevitably, questions will come up along the way. Partner with an organization that offers both initial and ongoing support. Ask these questions to help determine the level of support the payroll service provides:
- Will I have a dedicated support manager or team?
- What certifications do support personnel have?
- Can the support team answer complex questions regarding compliance or employee benefits?
- How can I reach them? (telephone, email, or chat)
- What hours are they available?
- What is the average response time for a customer service request?
9. Transparent pricing
Avoid costly surprises by asking detailed questions about what their plans include. Many companies promise full service plans, yet fail to mention their hidden fees or required contracts. Partner with a company that offers full transparency. They should be able to help you determine your costs both now, and as your organization grows.
Your small business payroll provider should be able to adapt to your unique business needs, both now and in the future. If you find yourself trying to adapt to their capabilities, they are not the company for you. Homebase payroll offers intuitive, user-friendly tools and unmatched customer support. Partner with us today to start taking advantage of the many benefits Homebase has to offer.