Entrepreneur magazine explains that asking the right questions before adding a payrolling service can benefit businesses that are looking to outsource the burdensome paperwork.

"Payroll is such an important piece of a business, with critical penalties if it's not handled correctly, so you need to be sure you're working with a skilled provider," Steven J. Elliott, tax director at accounting firm Schwartz & Co., explains to the media outlet.

For example, in Palm Bach County, Florida, an audit at a local school district found that chief academic officer Jeffery Hernandez blamed a clerical payroll error on nearly $1,800 worth of sick days that went unaccounted for, although he claimed that he requested them off, according to WPTV-TV.

The news source recommends that business owners ask potential services what type of protections they offer in case a mistake arises – most companies will pay the penalties if they make an error, but they won't take responsibility for the interest.

Additionally, managers should make sure they aren't paying for services that they aren't using, such as tax-compliance assistance or time-sheet management. Of course, track record is important as well, and performing basic due diligence – such as checking for complaints with the Better Business Bureau – can effectively narrow down a provider search.

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