What do Payroll Service Providers Do and When is the Right Time to Outsource?

Outsourcing payroll is usually the
first expansion in a small business.

Q:What do payroll service providers do exactly?

A: Basic services offered include calculating payroll and tax obligations, printing and distributing checks and producing reports. Additional services can include direct deposit, payroll tax filing, issuance of W-2 forms, 401(k) deductions, and tracking of employee benefits.

Q: When is the right time to outsource payroll?

A: It could become obvious one day that the time is right. But if you’re not sure, ask yourself these questions:

1. Are you missing payroll deposit deadlines? If your payroll tax deposits aren’t timely, late deposit penalties can be as high as 10 percent.
2. Are you unsure about your payroll tax calculations? Your errors can be held against you, and penalties can be assessed. 
3. Too many employees? If you have fewer than 20 employees it’s likely that you can save money by outsourcing payroll. Do the math by comparing the hours/cost of your current system and comparing it to the plans offered by a short list of service providers.

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READ MORE>> SmallBusinessAdministration.gov: Five Tips for Outsourcing Your Small Business Payroll Operations

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• GBC Payroll Services' Website   
• About GBC Services
• Payroll Taxes and Your Business
• Helpful Payroll Related Articles