Are Payroll Services Worth the Cost for Small Businesses?

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Payroll processing can be a heavy burden for small business owners. It’s complicated and time-consuming, and if it isn’t done right it can be expensive to correct errors. Although some small business entrepreneurs feel comfortable handling payroll on a DIY basis, most of them consider it not be the best use of their time. That’s why they often choose to hire an accountant or bookkeeper as an employee to manually process payroll. However, there is another option: hiring a payroll service.

Mark Rowley, Owner
RandR Payroll Services

What is a Payroll Service?

A payroll service is a vendor company that will handle and streamline your business’s payroll requirements for a fee. The best payroll service providers will stay ahead of all payroll tax rule changes, legal compliance, and accountability concerns. This service frees you to spend your time working on your business and instead of being buried in back-office work.

If it sounds like a good idea, that’s because it can be. But, how can you tell if the cost for a payroll service is worth it for your small business? Start by answering a few questions:

  • How many employees work for you?
  • How often do you pay them?
  • Do you pay by paper check or direct deposit?

How Do Payroll Services Charge?

Payroll service companies charge for services based on the number of employees for which they will be servicing, and how often you need payroll to run. There are add on costs as well, if you need more support. For example, if you want the payroll service company to help file and pay federal, state, and local payroll taxes, you can expect to pay more for that support. Other additional costs may include the flexibility to pay either by direct deposit or by printed check.

Keep in mind that some payroll vendor companies will charge for onboarding and account setup, and possibly even charge money if you ever cancel your account.

Is It Worth It?

The bottom line is, it can be. The decision often comes down to more than just the financial cost, since the choice to hire a payroll provider can save you a lot of time, stress, and headache. Call R&R Payroll & Bookkeeping Services at (951) 296-0412 for a conversation on whether payroll services can help your small business.