To Outsource Payroll Or Keep In-House - That is the Question

When it comes to processing payroll, there are- If you find payroll taxes confusing or simply
many ways it can be done. Which is best for youdon't want to handle them, this is a nice
will depend on time, knowledge, comfort level,compromise. Again, bookkeepers and accountants
whether you need job costing, turnover rate ofsometimes offer this service and Intuit has
staff, the variety and types of benefits yourAssisted Payroll, so with a click, your payroll
company offers, how many states you deal with,information is uploaded to them and they take it
wage garnishments and the complexity of yourfrom there. Again, I have a contact at Intuit if
payroll. I remember when I first started workingyou're interested in learning more.
with payroll - 3 months later I had forgotten what- Completely in-house. If you go this route, you
reports I used and how to calculate what Iwant the Enhanced Payroll. In addition to the tax
needed (it wasn't built inside of QuickBooks backtables, you have the ability to print out all the
then) for quarterly reports so I spent quite a bitpayroll tax forms prefilled with your data (so
of time "relearning". I had a client who decided itmuch easier than having to manually calculate and
was more economical to outsource payroll - notfill them out). You can also e-file taxes and forms
because she couldn't figure it out, but she couldright from inside of QuickBooks - you don't need
spend her time on billable work; for what it costto go to the respective websites. If you are
to outsource, she came out ahead.interested in this, let me know so I can get you
Many people assume that the least expensivemy ProAdvisor rate.
way to do payroll is in-house. While that may beWhen outsourcing payroll, ask who will make the
the lowest direct dollars paid, what is oftenentries in your QuickBooks, what type of entries
overlooked is how much time it takes and thethey'll be (journal entries or checks), when the
cost of those processing the payroll. Whenmonies for the payroll taxes are withdrawn
salaried or steady hourly, the dollars spent on(some do it on payday and others on the dates
payroll are often lost in the bigger dollars oftaxes are due), and who files the forms
having staff. So take the hourly rate of the(sometimes you're given forms to sign and mail
person(s) doing payroll and multiply the hourswith a check). You'll also notice that with payroll
spent on timesheets, paycheck creation, payingservices come a variety of fees. Factors that
payroll taxes, and anything else payroll related likeusually affect fees include (there may be more):
adding/removing employees, changing employee- Frequency of payroll
benefits or withholdings and so on. Companies- Number of employees
who offer payroll services have it down to a- New employees
system, so most times it goes faster for them- Changes in benefits or withholdings
and for the dollar, it's often a good deal. So, here- Number of different states you need to pay
are your options:- Direct Deposit
- You can completely outsource payroll. There are- Paycheck delivery
times when it's best just to let someone else- Reports requested
handle it - they know it better and you have- Integration with QuickBooks (Intuit does not
more productive work you could be doing. Therecharge for this, but other companies do)
are payroll companies and then you'll find someSo, take some time to calculate what it costs to
bookkeepers and accountants also provide thisprocess payroll in-house, the benefits of having it
service. Intuit just brought back their Completein-house and compare those costs to outsourcing
Payroll. If you're interested, I have a contact at(all or part) - in terms of dollars, liability, and what
Intuit and I can put you in touch with him.else could be done if staff spent less time on
- Outsource the payroll taxes and filing tax formspayroll.