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Payroll Services Explained: A Smart Businessowner’s Guide
Payroll Services Explained: A Smart Businessowner’s Guide
October 25, 2021 / Sarah Pritzker
Payroll Services Explained: A Smart Businessowner’s Guide
October 25, 2021 / Sarah Pritzker

It's no secret that managers and employers hate payroll. It takes hours to process, requires mind-numbing attention to detail, and comes with hefty repercussions if you screw up. No, nobody likes doing payroll. Fortunately, in 2021, the smart business owner knows that they don't have to anymore. With payroll services like Gusto and Intuit, you can have your entire payroll processing automated. So, everything is done automatically, without your input, and free from costly human errors.

Not sure what a payroll service is all about and whether or not it can help your business? Check out this comprehensive guide to payroll software and discover what you’ve been missing out on until now.

What is a Payroll Service?

Payroll services are any type of service that processes your company’s payroll for you. These services come in several forms, including full service and software. While some corporations opt for a full-fledged payroll service, most businesses prefer the convenience and security of payroll software. We’ll get into a few of the differences below, but suffice it to say that both payroll services and payroll software add tremendous value to your business with features like:

  • Tax filing and compliance adherence
  • Analytics and reporting
  • Paycheck stub generation
  • Detailed record keeping
  • Syncing with other business applications
  • Attendance tracking
  • Vacation and sick day calculations

Many payroll services will even provide HR benefits and services, hiring and onboarding, and accounting services. So, you really get a ton from this one piece of software.

What’s in it for Me? Payroll Services Benefits

Payroll services sound great. But you’re a savvy business owner, so you’re going to need to see the money. What can payroll software do for your business? How will this type of service benefit your company? And will the costs outweigh the advantages gained (ROI) at the end of the day? Let’s take a look.

Increased efficiency

Studies have shown that payroll processing and accounts balancing can take 40 hours a month for the average manager. 40 hours a month! That’s a tremendous amount of time that one of your top employees can use to do other, more important tasks (like managing their team, allocating resources, or analyzing data for better efficiency). With payroll software, your manager doesn’t have to do a thing. The system is automated, so everything runs hands-free. You set it and forget it, freeing up your most valuable employees to do the work they’re really good at and are needed for.

Plus, payroll is a tedious, annoying task. Taking this time-consuming frustration off their plates can only help to increase productivity and bolster more positive attitudes around the workplace.

No human error

Another extremely important benefit of payroll software is the lack of human error. According to statistics, businesses paid out more than a billion dollars in fines, miscalculations, and redistribution fees caused by improperly processed payroll. Mistakes happen. We get it. You may have put a period in the wrong place. You leave out an important digit. You press delete on the wrong cell. Unfortunately, these little mistakes can add up to major issues and costly fines for businesses. Payroll software eliminates this pricey issue.

Tax compliance

Just when you thought payroll services couldn't get any better, they go and throw in tax compliance and filing into the mix. Tax filing is another time-consuming and frustrating task nobody likes to do. To make matters worse, tax regulations are constantly changing. So, unless you have someone with their finger on the pulse all the time, you are likely to make mistakes in your tax calculations (and an expensive mistake, to be sure). Fortunately, payroll software takes care of all of your tax filing and compliance requirements. You'll be fully compliant, always up to date, and calculator-free. What a relief!

Payroll software also offers better security by keeping your sensitive data in-house (a benefit the software option has over the outsourced payroll service option).

Find the Best Payroll Services Out There

Ready to take this arduous task off your plate? Then check out our top picks for best payroll services in 2021.

Our Top 3 Payroll Services

Visit Site
  • Easy to use
  • Automated tax filing
  • Syncs with many other platforms like QuickBooks and Xero
  • No automation for mandated deductions
  • No PEO option
Gusto is a user-friendly, multi-tasking payroll platform that handles much more than just employee payments. Gusto syncs with time-tracking and accounting software, streamlines new employee onboarding, time off requests, and other HR tasks, and helps keep you compliant with all the tax and benefits regulations. Save time and hassle with Gusto automated payroll services.
Visit Site
  • Hundreds of template forms
  • Packages for businesses of different sizes
  • General feel is cold and impersonal
  • HR resources for small and medium businesses are quite limited
ADP offers a flexible payroll and HR platform for businesses of all sizes, with a full range of features including payroll, HR, benefits, and compliance tools. It’s ideal for large corporations with employees in many states and countries, but small businesses might find that they can’t get the tools they require without paying for a more expensive package than they really need.
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  • Easy to get started with plenty of setup support
  • Fast, intuitive, automated payroll processing
  • Very limited HR resources
  • No benefits management
QuickBooks is one of the leading providers of accounting software, so it makes sense to integrate that with their powerful payroll services platform. QuickBooks payroll provides powerful payroll tools like state and federal tax compliance, benefits management, automated payroll, and workers compensation so that you can keep track of everything in one place.

Take a Load Off With Automated Payroll Software

Nobody likes doing payroll, and with such great alternatives, why would you even bother? Employ a reliable, efficient, and affordable payroll service to do your dirty work for you. And then you can kick back and enjoy the perks of more time on your hands.

By Sarah Pritzker
Sarah Pritzker is a professional writer who loves scouring the web looking for the coolest products and services at the best prices. Sarah writes for Sarah has lived and traveled all over the world, but has finally settled down with her family in the Middle East - and yes, she misses winter!