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If your business pays employees or contractors—even if it’s a sole proprietorship or microbusiness with no traditional employees other than you—it’s time to look into a small-business payroll provider. 10 Questions to Ask

With dozens of reputable payroll providers open for business, choosing one is no small task. We’ve identified the top 10 questions to ask as you choose a payroll provider for your business.

Key Considerations for Choosing a Small-Business Payroll Provider

As you evaluate the many small-business payroll processing options out there, look into the following important factors to ensure you make the best choice for your business and its employees.

1. Does It Have a Good Reputation?

Payroll providers with good reputations tend to deliver on their promises. If you’re uncomfortable entrusting one of your company’s most crucial noncore business functions to an upstart, look into an established player instead.

Check out the company’s history and reviews to gauge its reputation in the industry and among consumers who’ve used it. Supplement expert reviews with feedback left by actual users on platforms like Capterra. And check for patterns of complaints with state attorneys general and sites like the Better Business Bureau.

2. Does It Handle Payroll Tax Calculation & Payment? 10 Questions to Ask When Choosing a Payroll Provider

Payroll tax management is a time-consuming, detail-oriented prospect that drives countless business owners who’d otherwise do their own payroll to payroll providers.

If your preferred payroll provider doesn’t offer comprehensive tax management at all price points, think carefully before you proceed. At the very least, spring for a plan that does include tax management.

3. Is It Easy for Nonprofessionals to Use? 10 Questions to Ask When Choosing a Payroll Provider

Even if you have the resources to hire a part- or full-time bookkeeper, a payroll platform designed with people who aren’t accountants in mind will serve you better.

Payroll is easy to overcomplicate. But it’s not rocket science, so you shouldn’t have to hire someone to navigate your payroll platform’s interface or interpret its reports. Aim for one that makes it simple to manage payroll.

4. Is It Mobile-Friendly & Mobile-Functional? 10 Questions to Ask When Choosing a Payroll Provider

Mobile-friendly apps have clean, larger-font text and crisp icons that appear legible and distinct on small-screen devices like smartphones. It’s an essential consideration for any business owner or payroll lead who wants the flexibility to manage and execute payroll on the go.

But mobile-friendliness isn’t the only consideration for frequent mobile users. If you expect to do any significant payroll work from your smartphone or tablet, or you plan to hire a human resources professional to do the same, choose a payroll provider with excellent mobile functionality too.

5. Does It Offer Integrated Time Tracking?

Integrated time tracking isn’t usually a deal breaker for small businesses with uniformly salaried employees who are exempt from overtime pay or ones that rely exclusively on contract labor.

But it’s critical for employers with hourly employees, especially if those employees work different hours every pay period. Restaurants and cafes, property maintenance providers, and seasonal businesses of all types have extensive timekeeping needs that call for close payroll integration.

6. Does It Run Payroll Automatically?

Manual payroll is a significant time drain for businesses with multiple employees and contractors. Rather than resigning yourself to spending hours making sure you’re ready to run payroll, choose a payroll provider that automates the process after the initial setup.

For example, all QuickBooks Payroll price points offer automatic payroll for salaried employees on direct deposit, always with the option to prereview the run and the ability to add special compensation like bonuses and commissions as needed.

7. Does It Allow Same-Day Direct Deposit?

The two-day direct deposit standard is nearly as antiquated as the paper check. Depending on the plan, leading payroll processing platforms like QuickBooks Payroll offer next-day and same-day direct deposit, reducing or eliminating the gap between payroll withdrawal and deposit.

It’s a feature that allows you to sell speedy payment as one of the many employee-friendly benefits you offer new hires.

8. Is It Competitively Priced? 10 Questions to Ask When Choosing a Payroll Provider

Payroll is one area in which paying more for a higher-quality product usually pays off. In other words, you get what you pay for here. But don’t pay for features and capabilities you don’t need or pay more than they’re worth for the ones you do.

Find a payroll provider that offers multiple plan options spanning a range of price points, and look for promotions. Many payroll providers offer special pricing for new accounts or provide free trials.

9. Does It Accommodate a Variety of Pay Structures & Worker Classifications?

Your payroll provider should have no trouble accommodating your enterprise’s payroll needs, no matter how complex they are or how often they need to be changed.

Look for providers that make it easy to change things like employees’ hourly rates, overtime allowances, special pay rates, exempt status, and bonus eligibility. You need a payroll provider that grows with your business as you add and promote contractors and employees.

10. Does It Integrate With or Offer Direct Access to Other HR Products?

Payroll processing isn’t the only human resources service businesses need as they grow.

Stay one step ahead of your plans and avoid unwelcome incompatibilities between present and future HR functions by choosing a payroll processing suite that integrates seamlessly with other core HR and bookkeeping products, like benefits administration and workers’ compensation management.

Look for incentives to purchase multiple services simultaneously. QuickBooks Payroll customers get 50% off for three months when they sign up for QuickBooks Accounting, for instance.

Final Word on 10 Questions to Ask When Choosing a Payroll Provider

Your payroll provider selection will have a tangible effect on your small business. The ideal payroll vendor ticks most of these boxes, among others:

• A fully mobile-friendly and mobile-functional experience
• Ease of use for nonprofessionals
• Excellent value for a variety of use cases
• Value-added functions like integrated time tracking and accounting
• Total peace of mind about payroll tax management
• Flexibility and scalability for growing enterprises with a mix of independent contractors and part- and full-time employees
• Hands-off operation, including automatic payroll processing
• Employee-friendly features, such as same-day direct deposit

These are reasonable demands for enterprises seeking a full-service payroll provider that makes good on its promises.

Some businesses have other nonnegotiables for prospective payroll providers too. Don’t be afraid to push your sales contacts to explain how they can accommodate your needs. If they really want your business, they’ll do their best to come through.