Imagine this: at the end of the month an employee reports an incorrect paycheque, the CRA says you owe extra taxes, and you lose a big client because you just couldn’t make enough time for them. What’s one easy solution to all of these problems? Outsource your payroll. But how do you find the best payroll for your small business?
Ask for Referrals.
If you have a payroll company in mind, ask to see testimonials. Don’t just read reviews, talk to clients. Ask peers and business colleagues who they use and if they would recommend them. Your payroll company will be responsible for a lot that requires trust, so it’s important to get a good idea of who you’ll be working with.
Make a List of What You Need
A lot of payroll companies will try to sneak in extra accounting packages as part of their monthly services. Determine exactly what you need from your payroll services and make sure the companies you’re investigating offer those options--and only those options. It isn’t helpful if Big Company X will only do your books if you also sign up for HR services, and you can’t unbundle them. At KB Accounting we offer full-service accounting, but we work with you to develop the best strategies and plan for your business, not an a la carte option that may not fit.
Ask Questions
There are many questions you can ask to help determine if a payroll service is a good fit for you, but here are some to get you started.
- How fast is turnaround?
- Who is liable for mistakes made by the payroll service?
- If I add or change the employee payroll, does that change my fees?
- How often do you provide reports?
- Do you impound my taxes? (Impounding tax means a company collects the money at time of payroll processing, regardless of when it needs to be paid to the CRA.)
- Can you work with my accounting software? Which software do you use?
- What do you need from me? What do I need to do to prepare my payroll?
- How often will I hear from you?
You can also ask to view a company report and have it explained to you to see how everything looks and how the company communicates. If you’re not happy with your selection, wait until the end of a fiscal quarter (or year) to switch again so that the transition is as smooth as possible.
