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Choosing a payroll management service

Posted on March 11th, 2011 Read time: 1 minutes

When choosing a payroll management service, business managers should take the time to vet potential firms in order to ensure they find the best fit for their companies.

Payroll outsourcing services can help employers avoid making costly mistakes and enable them to invest the time they would have spent on administrative tasks into high-priority projects, notes Inc. magazine.

"One of my rules is if you have one employee, get a payroll service," Rhonda Abrams, president of a business services site and author of the guidebook Hire Your First Employee, told the source. "The penalties for screwing up are so much more expensive than the cost for payroll."

When starting the search, managers can use a search engine to look up employers of record and can ask other businesses for references.

Many payroll services have unique offerings, so it is valuable to take the time to determine which features are most important for the company's needs. This is especially important if there are unique situations such as a large union presence. Not all payroll services are familiar with union rules, making it important to assess their experience level before choosing a firm.  

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