Using payroll outsourcing can be among the smartest decisions a small or medium business makes for itself. However, it is vital that you understand what you need to know before you take the leap.
Why would I need a payroll service?
Payroll is one of the biggest non-income generating parts of a business there is. If you have even one staff member, you can benefit from using the services of a payroll outsourcing company to avoid the complications of difficult calculations, and the very real risk of making mistakes that will run you afoul of the law. Outsourcing takes away that headache without the need to find the space for a salaried individual to do it in your company, and can even improve security issues in many cases. The fact that this is the arena of work for the payroll service means it is far easier for them to be up to date and fully compliant with the often-changing legal aspects of payroll, in turn ensuring you remain safer.
So how do I know when I have a good payroll service?
The advice above doesn’t just count for businesses looking for any payroll services at all- it also count’s if you already employ a service. It always is beneficial to check into the service you are currently using and make sure that what they offer is competitive and up to date. Payroll services must deliver on what you need and want- some services will attempt to upsell the services they offer you so that you end up paying for a bunch of things you don’t want or need. A good service will tailor the package to your needs specifically. They may also offer value-added services you may or may not need, but will not force these on you. You should have a permanent contact- the face at the other end of the phone must not change every time you call- they should be professional in the way they act, and you should be able to ask questions.
What information would I need?
Before you approach the company you have carefully selected for your payroll outsourcing, make sure you have your Employer identification number with your local revenue people to hand. You should also have your state identification number if that applies, and the details of your bank account in full. You will also need to provide all the details of your employees and their salaries. Make sure this is comprehensive- from every piece of information that legally needs to appear on their salary slips right through to details of deductions that might be required. You may also need their previous tax returns to hand. If you are a newer business, you will need to be registered with the revenue service before approaching the payroll services.
Overall, using a payroll outsourcing firm like http://payrollserviceaustralia.com.au/ just makes sense for most small businesses, but make sure you have your ducks in a row yourself and all information easily to hand before you approach them.