Payroll is one of the most important and complex aspects of running a small business. For many small business owners, especially when just starting out, it can be tempting to try and handle payroll yourself. However, doing your own payroll can be risky and time-consuming. In most cases, it makes more sense to use a payroll service.
Consider the pros and cons
Payroll is a critical task for any small business owner. Processing payroll efficiently and accurately is important for maintaining compliance, keeping employees happy, and controlling costs. However, payroll involves complex tax calculations, filing requirements, and administrative work. This leads many small business owners to ask: should I handle payroll myself or use a payroll service?
There are pros and cons to both options that small business owners need to carefully weigh. Doing your own payroll can sometimes save money and gives you greater control. But it also requires a major time commitment each pay period. Using a payroll service simplifies the process through automation, but comes with service fees. As you decide what makes sense for your small business, here are some key factors to consider:
Pros of doing your own payroll
- Cost savings - Payroll services charge monthly fees plus per employee fees. If you only have a handful of employees, doing it yourself may be cheaper.
- Control - You have access to all your data and full control over the process. No need to rely on an outside provider.
- Customization - You can set up payroll exactly how you want in terms of pay periods, deductions, etc.
Cons of doing your own payroll
- Time consuming - Processing payroll means calculating hours and pay rates, handling taxes, printing checks, filing paperwork. This can take many hours each pay period.
- Complex tax calculations - Payroll taxes are complicated, with forms for federal, state and local. Mistakes can lead to big penalties.
- Manual processes - With payroll software, everything can be automated. Doing it yourself means manual data entry and calculations.
- Lack of support - If you have questions or issues, you're on your own to figure things out. Payroll companies have dedicated support.
- Increased liability - You take on all liability for mistakes and compliance issues. Using a service reduces your risks.
When does it make sense to do your own payroll? Generally only in these situations:
- You have 5 or less employees
- Your pay periods and pay rates are very simple
- You have accounting experience and understand payroll taxes
Otherwise, the complexity and risks usually make using a payroll service the smarter choice. The right payroll provider takes all the burden off your shoulders. Benefits of using a payroll service like H2H Enrollments include:
- Accurate tax calculations and filings - They stay up to date on federal, state and local tax laws and handle all required filings and payments.
- Easy automation - Everything can be set up online and automated, from time tracking to direct deposit.
- Compliance expertise - They stay current on regulations for payroll, taxes, reporting and worker classification.
- Access to support - Get all your payroll questions answered by their team of experts.
- Pay-as-you-go pricing - Only pay for what you use, with no long term contracts. Costs scale up and down with your needs.
- Integrations - They can integrate directly with your accounting software, time tracking tools and benefits admin platforms.
For most small business owners, using a full-service payroll provider is the smart choice. Doing payroll yourself may seem like a money-saving option at first, but the risks and complexities often make it more trouble than it's worth. The time savings and compliance expertise offered by a provider like H2H Enrollments are invaluable.
Rather than getting stuck handling payroll on your own, partner with the experts. H2H Enrollments offers customized payroll solutions tailored to your unique small business needs. Their team handles everything from accurate tax calculations to direct deposits and filings, while you focus on your growth and passion. Don't let payroll headaches slow you down. Contact H2H Enrollments today to let them handle payroll so you can get back to business. With flexible pay-as-you-go pricing and no long-term contracts, you have nothing to lose. Visit H2Henrollments.com now to learn more and get started with simplified payroll from a provider you can trust.