Ask the Right Questions when Choosing Payroll Software or Services

Shopping for payroll can be complicated, though the key elements are simple enough to describe.

First, you must have your payroll requirements down cold. Don’t assume that what you need is so simple and straightforward that any payroll processor can handle it. Then you need to find a processing option that will accommodate your needs.

Finally, determine the costs of processing payroll. This can be as easy as trying to nail jelly to the wall with some of the outsourced payroll service bureaus, who seem to tack on extra charges at every opportunity.

You: “When will our pay checks arrive?”

Them: “They should be there by noon tomorrow. Thank-you for your call. We will charge our 15-minute minimum to your support account with us. Have a nice day.”

There always seems to be something extra on your payroll processing charges. Even if you buy software, you'll probably need to update the tax tables every year, and that will be an "optional" extra.

Online services can offer even more perplexing options. Check if there are any extra per period or per employee processing costs. There may also be a fee for preparation of government required tax forms and more detailed payroll reports.

The key here is to know exactly what you need and specify it in writing. Then get the service to guarantee in writing that they can provide those services, and have them quote you a fixed cost.