I have seen all too often, a new owner or manager makes that important decision to higher a payroll service to run their company’s payroll. Seems reasonable enough, right? After the first payroll is run, you find out that 2 of your employees did not receive their direct deposits. Okay, so you make the call to your designated payroll consultant and she says she was missing some numbers form the employees bank accounts.. okay, so you read the numbers to her again, and then she reads them back, and it seems fixed. Then you go and print some paper checks to get your employees paid and happy again. The next week comes and still one the employees does not receive his direct deposit..you make the call, play phone tag and finally get the manager to call you back…now your super bothered because you now have an employee that is frustrated and maybe financially stresses and thinks you or the payroll service (that you hired) or both are, well, incompetent…and your employee may at least half right.
People do make mistakes, it’s called human error, and while we cannot avoid human error 100% of the time, we know that we can reduce it a fair amount with the proper safe guards or checks & balances in place. When looking for a payroll company, ask questions… how do they safe guard against errors such as not getting paid via direct deposit. Also, ask them if they provide printed payroll reports, both a summary and detailed report…make sure it is not handwritten (no, I’m kidding, this still happens believe it or not). Can the payroll company grow with you should you decide to offer that 401k down the road or health insurance. If you have started with a payroll service that makes a lot of mistakes or has just gotten too expensive, you can make the jump…a good payroll service will be able to enter previous payroll data for the current year so that there are no problems when creating and filing your year end W2s.