So, you're getting ready to start a business and you are thinking about your payroll options. Everybody you talk to tells you to handle payroll in-house with an inexpensive software package. They advise against paying for payroll service. Fair enough. Every new business owner has to decide for him or herself how to handle payroll.
We get that your financial resources are limited. We understand that you are looking to fund your new business for as long as possible, so any place you can save is worth considering. But we would like to offer another angle. Rather than looking only at bottom-line expense, consider just what you get with DIY payroll.
You Get to Spend Time on It
Right off the top, you get to spend a lot of time handling weekly payroll processing. It is not as simple as you might think unless you are your company's only employee. But in that case, you are a sole proprietor anyway. If you have employees, there are certain payroll expectations.
You will be spending time tracking attendance, calculating hours, and then translating that to weekly pay. You will have to keep track of tax withholding as well. And don't forget having to file and pay your taxes. You will have to pay at least federal payroll taxes; you may have to pay state payroll taxes as well.
You Get to Fix Mistakes
The complex nature of payroll means that mistakes are part of the game. Professional payroll providers like BenefitMall do everything we can to mitigate mistakes as much as possible. Yet even a company like ours is not perfect. The advantage of letting us do your payroll is that we handle all the mistakes and any consequences that may arise from them.
DIY payroll affords you the fun times that come with fixing your own mistakes. You get to track down what went wrong and why. You get to implement an immediate fix as well as a solution that reduces the risks of the same mistake happening again. Doesn't that sound exciting?
You Get to Update Your Software
DIY payroll in the modern era almost always involves computer software. Whether you buy an off-the-shelf solution or contract with a company for a package developed just for your company, you are going to be responsible for making sure that software is regularly updated. You cannot necessarily depend on the software developer to remind you of updates.
You Get to Worry about Security
Processing payroll using a software solution always raises concerns about security. Guess what? As your own payroll provider, you also get to worry about that too. You get to implement policies and procedures for protecting employee information. You get to make sure that your network is secure when you file your tax reports online. You will have the chance to secure your own computer systems so that no one in-house can hack employee data.
You Get to Do Weekly Processing
Finally, DIY payroll gives you the opportunity to process payroll every week. You could choose to go every other week or bimonthly, but you still have to run the process. That means calculating time and earnings, entering all that information into the computer, and then either cutting paper checks or initiating direct deposit transfers. Rest assured there is no shortage of fun activities to keep you busy.
In all seriousness, DIY payroll is a lot of work. Why not invest in third-party payroll services now, while your business is still young. You'll have one less headache to worry about. You will also have more time and resources to put into building your business.