5 Mistakes to Avoid When Choosing A Payroll System

Common mistakes when choosing payroll companies

5. Spending too much.

The way to avoid this is to not make your decision based on monthly rate alone. Payroll service prices are a combination of a monthly rate and a fee per employee (usually around $2.00). Some companies charge a low monthly rate but add fees for tax services or direct deposit services. Make sure to ask these payroll service questions when you�re choosing which payroll service provider you�d like to go with.

4. Unrealistic expectations.

Outsourcing your payroll doesn�t remove all payroll tasks from your business -- each week, employee hours will need to be submitted to the payroll service provider by phone, fax, email, or online. Also keep in mind that selecting an online payroll service will be more of a self-service approach to outsourcing payroll. Before you outsource payroll, decide whether you can delegate weekly tasks within your company or if you will handle them yourself.

3. Skipping the demo.

Don�t buy something you can�t stand looking at. When it comes down to your top choices, take a quick peek each provider�s demos or screenshots. You don�t want to spend a year working with a product that isn�t easy to use.

2. Not shopping around.

Request payroll price quotes from multiple payroll service providers. An insurance company in Garland, Texas is paying half the price quoted by the other payroll companies because the winning company offered unlimited payroll processing.

1. Trusting the company alone.

Hear what others have to say! Request references from the company itself, search for reviews on sites like Epinions or Viewpoints, and find out if there are unresolved consumer complaints on the Better Business Bureau website.

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