How to Pick the Right Payroll Service for Your Company When it comes to payroll services, there are numerous options. You could be looking into everything from online payroll software to local bookkeepers and accountants. Consider the size of your company and the complexity of its payroll operations when selecting providers to review. In this article, we will help you determine the questions you should ask to find the best fit for your company, as well as provide an overview of the different types of solutions you should consider. Enquire now to choose Expert Payroll Accountant Services. The Size of Your Company The size of your business is important regardless of which payroll solution you choose. Payroll companies will claim to be able to handle payroll for any size company, from one to 100,000 employees. While this is true for some, it does not imply that they are right for you. Some general guidelines are as follows: ● 0 to 5 employees : You are a very small business with little regulation, so you won't have to worry about compliance issues. All of the payroll options we've mentioned should be suitable for you. If you go with your accountant or bank, make sure you have workers' compensation insurance and the necessary paperwork filed with the state. Make sure you understand the fundamentals of payroll so you are not held responsible for the mistakes of others. ● 6 to 50 employees : You are considered a small business, and some states may impose requirements on issues such as sick leave. Your company is still small enough that free payroll software will suffice because you don't require all of the bells and whistles. If you choose this option, you must ensure that you are in compliance with both federal and state payroll laws. ● 50-100 workers : Even though you're still a small business, you'll need a payroll solution that can meet all federal requirements, including the Family and Medical Leave Act (FMLA). A good option is all-in-one HR payroll software. ● 100 or more employees : You're growing into a medium-sized company and need to consider the cost of volume (i.e., a solution that charges a high rate per employee such as PEOs can get expensive quickly). You must abide by all federal and state laws. Because you have over 100 employees and benefits, a human resources information system (HRIS) is required. Considering Size & Features Payroll services that can handle a wide range of business sizes are typically more expensive and offer more features. Companies with a small number of employees may prefer simpler services that only address the needs of paying employees and taxes. For example, a company with four part-time employees would not have to pay a premium for payroll services that offer competitive insurance rates. The law does not require benefits until you have 50 full-time equivalent employees, so a very small operation would not need that option in most cases. Some services and software are simply not designed to handle large organizations. If you have 50 employees today but anticipate having 150 within the next year, you don't need to sign up for software that can't handle payroll for more than 100 employees. Consider how many employees you have now and how many you intend to have in the future. When looking for payroll providers, look for online reviews from similar-sized businesses that have used them. Budget Most business decisions are driven by budget, and you should keep this in mind when choosing a payroll provider. Most services charge a monthly fee, so figure out how much you can afford. I also recommend looking at it on an annual basis; some services charge a fee for handling year-end tax reports. Remember that having more employees usually increases payroll service costs. Some services, on the other hand, charge the same rate if your employee count falls within the same pricing level. Finally, keep add-ons in mind. These are features that are not included in the package you choose. They are expensive and can quickly drive up your costs. Make a point of totaling all costs by month and year so you can compare providers fairly. Integrations of Payroll Software Keep them in mind if you are or will be using software that you want to connect to your payroll software. Make a list of them so you can ask a representative about them or look them up on the service's website. If you can download the data into a spreadsheet format, many online payroll services will allow you to load it. Some systems have automated integrations that connect them with the click of a button. Accounting, employee scheduling, time and attendance software, and point-of-sale (POS) software are some of the most popular payroll integrations to consider. The more employees you have and the less time you have, the more likely it is that you will benefit from some software integration.