Business payroll services are not all the same.
We’ve seen it too many times: a company thinks of payroll as a small task, outsources that job to the first inexpensive business payroll service they find, and all is well. That is until something goes wrong.
The truth is, getting the wrong payroll service can be worse than not hiring one at all. If the service creates more problems than it solves, what’s the point? And, if your company is opened up to additional risks and frustrations, it’s more of a liability than a service.
So, what’s the solution?
You need a business payroll service that provides the services you need so you can solve your payroll problems for good.
Demystifying Business Payroll Services
Full disclosure, ConnectPay is a small business payroll service. This gives us a unique point of view on the landscape of payroll solutions.
We’ve seen the good and the bad side of payroll services. We’ve heard success stories and some not-so-successful stories as well. However, the bad usually happens because of a mismatch between the client’s needs and their provider's “wheelhouse.”
The 5 Levels of Business Payroll Service
There are different levels of payroll services, and every business (for the most part) fits perfectly at a certain level.
Some small mom-n-pop style businesses can get away with doing payroll themselves, all in-house. As they grow and add employees, managing payroll can become too much of a burden. But, for some growing businesses, doing payroll themselves is a viable option.
Bookkeepers and CPAs
While some bookkeepers and CPAs manage their clients’ payroll, not all want to keep up with the changing compliance. Many outsource that work to a trusted payroll partner. For example, we partner with many CPA firms to provide payroll services to their clients.
Small Business Specialists
Small businesses face unique payroll challenges compared to larger enterprises. Small businesses are usually local and lack the appropriate resources, time, and staffing to handle payroll internally.
At ConnectPay, our specialty is providing payroll services for small businesses. Our company is built on the relationships we have with our clients, which is precisely the level of service most small businesses need. When something goes wrong, they always have someone they know and trust to call - not just a faceless call center representative.
Mid-sized businesses with around 100 employees and up are positioned like a bridge between small businesses and enterprises. Most of these companies are growing (often rapidly) and need a payroll service that can scale with their workforce.
It’s in this liminal space that needs change from small business issues to the problems of the enterprise company. Many companies find they need a change as their business hits certain growth levels, desiring much more of a focus on complex Human Resource requirements.
At this level, having a smaller payroll service provider is not as good of a fit. When your business begins to cross state lines and possibly even national borders, payroll becomes a whole different ball game. With hundreds of employees and many additional tax and labor laws to follow, enterprises need a payroll service specializing in larger brands.
Matching Payroll Services to Business Requirements
As mentioned before, our specialty is small businesses. If you own or operate a small business and you’re looking for a business payroll service, you can skip the line and get a consultation here. And if you want to learn a little more, keep reading.
Tax Compliance and Risk-Reduction
The importance of staying compliant with IRS rules and regulations cannot be overstated. Handling tax calculations, e-filing, and reporting on taxes requires a lot of time, headaches, and stress. And doing this in-house opens your company up to unnecessary risks and human error. You need a payroll service that understands your company and the tax and labor laws of your area.
Automated Payments and Direct Deposit
Most companies are looking for a dependable way to pay their employees. In times past, this has meant a lot of paperwork and snail-mail. Today, people want to go paperless, which is better for the environment and more manageable in an electronic-driven world.
Your payroll service needs to make direct deposits a possibility while automating payments. You can also provide PayCards for employees that do not have a bank account. This will make your company green while better serving your employees.
Payroll isn’t just about printing checks every week. Employers need a comprehensive way to track employee hours worked and monitor remote workers' time and location. Time and attendance solutions are also vital to keep track of overtime, sick time, vacation days, and paid time off.
Business payroll services should be able to integrate time clock solutions into their systems and processes without additional headaches on your businesses.
When it comes to workers’ comp, employers need coverage that protects both their employees and their company. Small businesses usually desire pay-as-you-go workers’ comp rather than standard workers’ comp plans that require upfront payments in one large lump sum. This gives them more control over their cash flow, which is critical for most small businesses.
It’s also important to note that many companies pay too much for coverage when their employees are all classified at the same rate. Your payroll service needs to have a firm understanding of your company’s department levels and local labor laws. When employees are all classified correctly, your company can save a lot of money.
Read more: How Much Does Workers’ Compensation Cost?
Human Resources Tools
There are many nuances and unique needs when it comes to managing employees and maintaining company compliance, from training employees to posting updated labor law posters. Putting together employee handbooks and handling delicate employee situations can require expert advice and insight. This is why we launched our HR Resource Center.
Support and Guidance
This is where a lot of business payroll services really begin to separate themselves. When it comes to managing payroll, businesses (especially small businesses) need someone to lean on when the unexpected happens.
It seems like every year brings new challenges to the small business world. Now, companies are trying to navigate complex issues like ERC and PPP loan forgiveness. Local compliance laws are always changing.
These are reasons small businesses need their payroll service to serve as subject matter experts that can help them through more than just the day-to-day of payroll processing.
Solving Payroll for Good
If you are looking for a business payroll service, the best way to ensure you make the right choice is by understanding the size and needs of businesses at their current stage of growth. Then, you should determine what payroll service best fits your specific needs.
We see many companies paying for payroll services that never get used, so they end up overpaying. You don’t want to do that. But at the same time, you don’t want to pinch pennies where you end up not getting the services your company really needs to operate, maintain compliance, and reduce risks.
If you’re a small business, we would love the chance to win your confidence and get payroll off your plate for good. You can schedule a meeting with us here.