24 Jul How to Know if You Need a Payroll Company

Every business has to manage payroll during the year, but managing payroll is a tall order. The way the business is structured determines who handles payroll, and the size of the business plays a part, as well. You must look at your company and decide what you can do to cut down on your payroll expenses every month.

How Large Is Your Staff?

A single person cannot handle the payroll for a large corporation on their own. The fanciest software in the world cannot allow one person to manage payroll for hundreds of employees efficiently. A smaller staff can be handled by one person, but you must make sure you have someone on staff who is willing to do payroll alone.

How Many People Work In Accounting?

If your accounting department is already too large, you must decide if you want to start laying people off. A large accounting department can be easily downsized with the help of a payroll company, and you will not have to wonder if the people working in accounting are earning their paychecks.

How Much Does It Cost?

A payroll service may cost the equivalent of two accounting positions at your company, but you may have ten people working in your accounting department. A third party vendor can help you contain costs when you are managing a business, and the fee they charge may be nothing compared to what you spend in salary every year.

You must calculate how much it costs to hire this service against what you already pay your employees. Your employees may do more than payroll, but employees who only do payroll may make more money than you would pay the vendor. Read More Here..