Question: How Do I Choose Between Payroll Services?

If you feel overwhelmed by trying to run your business and keeping up with the changes in payroll, you are probably ready to get someone to help you with payroll. Before you make a decision on a payroll tax option, consider these factors.

Answer:

In deciding who should do your payroll, here are some factors to consider:

• How many employees do I have now? How many will I have in a year or two? If you will have only a few employees, you may want to keep your costs low and do payroll yourself. You will have to find someone who can keep up with tax changes and remember to file reports and make payments when they are due.
  
  

• Do I have a trusted family member or employee who is knowledgeable about payroll? If you have someone you trust, and if you have only a few employees, purchasing accounting software with a payroll option might be your best choice to keep your costs low. If you don't have someone you trust internally to do payroll, you might want to ask your accountant or CPA to help you find a local bookkeeper.
  
  
• Am I concerned about giving my payroll information to an outsider (like a payroll service)? Putting your payroll information on the Internet or giving it to an outside payroll service might be a risk, but no more so than any other online backup or online service.
  
  
• Do I already have accounting software I can link payroll software to? If you are currently using QuickBooks or other business accounting software for your company, you can purchase a payroll service add-on which will enable you to go online and get payroll information.