Small Business Payroll Services

I see plenty of room for improvement is small business payroll processing. About 2 in 5 of all small businesses eventually wind up with problems and penalties due to payroll tax errors. The issue can usually be avoided by ensuring that service is provided by a reputable payroll service that is supervised by a responsible person. Problems and penalties occur when there is a technical error that is not promptly addressed. A combination of strong technology plus professional oversight is a combination that gives best results.

Do-it-yourself payroll services start at about $50 per month but I strongly recommend professionally managed services at $75 per month for small businesses. This ensures a problem-free experience and access to experienced help if necessary to address any questions. When issues do arise, they will be handled without a requirement of additional time spent  the business owner.

A few tips that can improv service and lower cost:

  1. Use the payroll service to pay unincorporated subcontractors to satisfy the requirement to provide a Form 1099.
  2. Pay employees and subcontractors though electronic deposit and not a physical paper check.
  3. Allow employees and subcontractors to have online access to their own payroll account. The allows them to access information anytime, download reports and form and get answers to payroll-related questions. This service is offered by all major payroll services at no extra charge.
  4. Allow your payroll system to connect to voluntary employee benefit plans. This saves taxes for both the employee and the employer. Tax-free flexible benefit plans are especially popular with employees and a lot easier to set up than you might imagine.
  5. Use remote online services that offer the best match to your needs. There is no advantage to using a local service provider because almost all payroll service is provided by phone or online.

Freedom Benefits solutions with Tony Novak CPA, MBA, MT

I will be pleased to discuss a custom solution to your business payroll.

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