Posted on: 15 June 2016Share
If you are in the process of starting your own small business, and you intend on hiring employees to help you perform the daily tasks needed to make a profit, you may have contemplated hiring a payroll service to help with the monetary side in keeping your staff paid correctly. Here is some general information on how a payroll service from a firm like Schramm & Lewis LLC works to help you determine if using one would be beneficial in your own business endeavors.
Determine Cost-Effectiveness Over Doing Tasks Yourself
Most payroll services will charge a monthly fee for their services. This can vary in cost per employee depending on how much you wish for the service to handle. Basic payroll service, which would handle the issuing of payroll checks and tracking of payment history can cost anywhere from $1-10 per month per employee in addition to a monthly service charge averaging in the range of $20-100. Some services will also charge an initial set-up fee. If you have the payroll service handle tax information, costs will most likely be higher. There may however, be package deals that help you save on the amount spent for additional services.
If you have only a handful of employees, it may be more cost-effective to do payroll tasks on your own. If you have an abundant number employees, the workload in tallying up numbers is best handled by a payroll employee. The amount you pay this person may be more than the service charge you would incur from a service, making an outside source for this job a better deal. Decide how much you would pay an in-house payroll employee to see if monthly costs are lower without outside service before making a decision on which path to choose.
Consider The Benefit In Protection When Handling Tax Information
Hiring a service to do payroll is beneficial over undertaking the task on your own if you are unfamiliar with tax law. If you have a service handle the tax information, you will have the piece of mind in knowing the paperwork is handled by a professional rather than the need for you to research extensive rules in how money is withheld for tax purposes. This will reduce the risk of auditing and allow you to spend time on other activities within the business instead.
Decide Whether An Online Service Or Local Service Would Work For You
Smaller businesses may fare better in hiring a local service to handle payroll needs. This allows you to converse with the service employees on a personal level if there are changes to the payroll on a constant basis due to new hires or resignations. Having a cloud based service, however, allows you to handle the payroll operation online at any time you desire. You do not need to wait to speak to your payroll service's employees during business hours and you have the added benefit in looking up information regarding the history of your employees' payroll on your own if desired.