Whether you own a small business or a large one, hiring a payroll company can make your life a lot easier. Turning your payroll over to an outside service can save you time, money and hassle—time, money and energy you can spend on more exciting business processes. If you’ve been wondering when you need to hire a payroll service, there’s no better time to take the plunge. Here are the top reasons to hire a payroll company:

• Your business hires workers from multiple areas: Remote work is here to stay. Not only is it a better way to find the best talent—no matter where they live—but it’s also flexible, which attracts great candidates. On the other hand, keeping track of the different state rules for paying and reporting state income taxes is a pain. When you outsource payroll, you can rest assured that an expert has it covered.
• Figure out true job costs: If your business creates a product, you’ll need to calculate the cost of goods sold. That can make payroll more difficult, since it’s not just a matter of calculating hours and overtime. A payroll service makes these reports and figures significantly easier.
• No need to keep track of payroll deadlines: If your business is small, chances are you’re taking on a much greater workload. Instead of spending time worrying about payroll and deadlines, outsource the work to someone else. Payroll services usually charge a flat fee based on employee numbers, so taking this task off your plate can be well worth the cost.
• Skip the withholding calculations: Finally, you won’t need to calculate your employees’ withholding. In addition to federal and state withholding, you’ll also need to watch FICA and Social Security withholding. If employees reach the Social Security cap, they’ll need to direct that money toward Medicare instead. Figuring this out on your own can get complicated and time-consuming very quickly.

Different types of payroll services

There are two broad categories of payroll services: assisted and self-service. Assisted payroll services do all the filing and check cutting for you. You simply give them your business information and they’ll take care of the rest. Most of these businesses assign you a specific payroll specialist, so you’ll always talk to the same person.

Self-service payroll services are usually online. You’ll do your own filing, but it will be more simplified than trying to do it yourself. They typically charge by how many employees you have and which states they live in.

Generally, deciding you need to hire a payroll service is going to be well worth the cost, whether you’re a big business or just getting started. Most services charge a flat fee by the number of employees, with small additional costs for each extra employee. When you compare it to how much time you’d spend—or how much it would cost to hire a full-time payroll employee—it’s often much more cost effective to work with a third party.

For information about our complete payroll and HR services, call the team at Windsor HR Services, Inc. today.