In part 1 in How to Select a Payroll Service, I outlined several points to consider when choosing a payroll service provider. In part 2, I’m expanding it further to include a couple of additional pointers to consider.
This blog is not the end all and be all of choosing a payroll service firm, however, it is enough to get you started and some points to consider.
Take it for a Test Drive
Other accountants in the GTA, I spoke to, say to take the payroll service firm for a test drive.
Try them out for a month and see how you like it. This is a chance to get all the bugs worked out as you get to know the software.
The software should be user-friendly and logical to use. It is a good idea to make sure the payroll service can issue T4s, Records of Employment, etc.
Once you choose
When you sign a contract with a payroll service, it is important to understand what is required of you as well.
Have organized files ready with employee names, addresses, wages and any other deductions they’re eligible for. For direct deposit, you will need voided cheques from your employees.
Note that this process can take 2 to 3 business days to go through. Also, make sure that you have the correct banking information for both the new employee and yourself.
I recently set up payroll for a client, who changed the banking information from his bank account to his Paypal account, which further delayed the roll out by an additional 3 days!
The test transactions were canceled due to this, further infuriating the client. It is important to know that any change in the information is going to delay the roll out, especially with QuickBooks Online.
You should set a schedule determining when you will check in with the service and how often you’ll get their reports.
Watch out for skyrocketing fees once the payroll service picks up as this will really eat into your profits.
Finally, if it turns out your service is not meeting your expectations, the best time to switch, is either at the beginning of the year when your pay cycle starts with a clean state or at the end of every quarter when your quarterly reports are already in order from your last payroll service.
Mathew Jazenko loves helping small businesses in the GTA straighten out the books. If you need help with payroll or any bookkeeping issue, contact Mathew today firstname.lastname@example.org or (289)-500-1978