Payroll Services For Small Business: How To Outsource Payroll

The Small Business Administration understands this dilemma and has some tips to help the small business owner searching for the right outsourced agent. Their advice is, to begin with beating the street. Ask other small business owners how they found payroll services for small business. Asking an accountant will net the small business owner an answer, as well. His banker could also help with ideas.

Once a candidate is found, however, the small business owner needs to ask a few pertinent questions. For instance, the small business owner needs to know that he, and he alone, is responsible for deposits covering federal tax liabilities. Even if the owner gives the outsourced agent the money for a deposit, if the deposit isn’t made, the owner is still responsible. Among the questions, a small business owner needs to ask us for references.

The owner will need to know the outsourced agent’s qualifications, see licenses, and know of professional liaisons. Permission to check all this out will be required. After the small business owner has checked out the candidate’s credentials, communications will be of paramount importance.

The small business owner will need to know with whom he is regularly dealing, and if he can contact them with questions at any time. Another method of communication is the secure passage of payroll data. The small business owner will need to know his comms are secure. Asking the outsourced agent about responsibility should follow.

The small business owner will need to know who is responsible for filing your payroll taxes for you, pay any penalties for incorrect filing, and deal with EFTPS payments for you? Do they help with local tax filing? Charges usually apply with outsourced agents and fees such as per check fees, direct deposit fees, fees for employees out of state, in addition to a fee for having an account with them. Ask about fees.

The owner might be able to get a monthly flat fee for payroll services for small business. Outsourcing essential aspects of a small business give the business owner time to run his business and grow his brand. Leaving technical questions to experts will save him lost time in educating himself, possible fines or jail time for failure to comply, and lost money in searching for ways and means, when an expert could do it.

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