As a small business owner, figuring out ways to save on expenses is a constant battle. There are some ways this works and others that don't. Do-it-yourself payroll is one place you might want to avoid cutting costs.
In the old days, the owner could simply grab some cash from the drawer and pay employees. Some small businesses just write a check and assume the payroll is all done! But payroll is more than just keeping track of hours and pay rates. Today's business owner needs to understand federal tax deductions, but it is more than just knowing how to calculate taxes.
Local, state, and federal taxes, compliance with changing laws and percentages, unemployment taxes, and more are all part of the equation that makes in-house payroll complicated and specialized.
Hiring a dedicated accountant is expensive when you add up salary, benefits, and taxes. It is often not necessary. This is where outsourcing becomes a great option. Advantages you will experience with outsourcing include:
Companies to Outsource To:
First off, most companies will do just fine getting payroll out. When we are gathering which of the companies are the best, we're talking about which syncs to QuickBooks the easiest, meaning less work for you, as well as which adds the most value for the cheapest amount.
We outsource all of our clients to Gusto. We've found them to be the most valuable bang for the buck of the companies that we work with. Track all time and attendance, maximize your tax credits, project what your workforce may cost in the future, as well as get people paid on time! An advantage to your employees as well: direct deposit and PTO management.
This is one of the most trusted payroll companies in the US. There are a handful of packages for ADP, and they can get pretty involved in recruitment, job postings, basic HR support, and HR Pro.
We only work in QuickBooks Online, so you would think that we'd recommend this payroll service to everyone, right? If you're using QuickBooks already, and you're not looking for more than a good sync to QBO, then, fine, this might work.
However, the pricing in the very beginning is lucrative, but it's based on a trial run. After that, you'd have to backtrack and it would end up costing more money to get a better platform. The service just doesn't have a ton of flexibility or add-ons.