Owning a business can be tough and paying employees can be confusing. The task of figuring out what taxes to deduct, writing paychecks, and sending W2 forms can be daunting, but using a payroll provider can make this process easier. Some businesses will prefer a local bookkeeper they can meet with face-to-face, but as more services move online, businesses are becoming more comfortable with online professional service providers.
Recently we were working with a farmer looking to set up their payroll for the first time and looking for online options, so we pulled some different ones for them to consider. A lot of companies offer payroll services now, so it is good to compare them against what you need.
What DO you need?
First, it is important to consider the stability of the payroll provider. How long have they been in business? Can you find service reviews from current or past customers? Researching these questions will help you find a company with a solid reputation.
Next, you will need to make a list of services you expect the online service provider to handle. Most cover the basics, such as keeping employee time, providing the correct state and federal tax deductions, and offering a variety of methods to pay your employees. However, if you provide health insurance, paid time off (PTO), retirement, or other benefits, you will need to ensure those options are available. Know what you want to provide, so you can ensure your bookkeeping and payroll needs are covered and there will be no need to switch companies later on or work with multiple companies. Remember, efficiency for your business is a key reason to work with a third-party payroll provider.
Last, you need to consider if the cost of the online payroll provider makes sense in your business. This question does not need to solely rely on whether the business can financially afford the cost, but will it allow you more time to focus on other aspects of the business? Many business owners have full plates and keeping up with the human resources related functions of the business can be a fulltime responsibility. Working with a third party can help streamline payroll and allow you more time to grow your business.
Below are some of the options and what they provide:
ADP:
ADP is a company with over 70 years of experience in the payroll and HR industry. They have a range of plans based on the size of your business that covers payroll needs, as well as many human resource features, such as health insurance, retirement solutions, time tracking, workers’ comp and more. ADP offers 24/7 customer service, where representatives are available over phone or via online chat.
Suitable for: Businesses that offer benefits, or plan to in the future.
ADP can be used by small to large businesses, and with the packages broken down by business size, you can customize what you need. However, if you do not offer benefits to your employees (and do not intend to), these features would not be necessary for your business and could be overwhelming to those new to managing payroll and human resources.
Fees: Pricing is based on number of employees and the package chosen.
Gusto:
Gusto began in 2012 and is a full-service payroll provider and offers a variety of human resources-related features. Customer service representatives are available via phone or live chat, but only during business hours.
Suitable for: Small businesses, new to managing payrolls.
Fees: Ranges from $19 to $149 a month, plus $6 to $12 per employee
Website: The All-In-One People Platform for Payroll, Benefits, HR (gusto.com)
OnPay:
OnPay has been in operation for over 30 years and is designed to handle payroll for small businesses (and their accountants). A unique feature is they specialize in processing special tax filings for farms, nonprofits, and churches. Customer service representatives are available via phone, live chat or email during business hours, but also offer emergency help via email on the weekends.
Suitable for: Small business, especially farms and small nonprofits.
Fees: $36 a month, $4 per worker
Website: Payroll Services by OnPay | Full-Service Online Payroll, HR and More
Square
Square began as a company in 2009 and has offered a payroll service since 2015. Many business owners are already familiar with the Square point of sale system, and their payroll feature syncs directly to it. This can make employee time-keeping more streamlined. Business owners may also use funds from their Square Checking account or Square balance to pay their employees faster.
Suitable for: Businesses that already use Square for their POS and do not offer many employee benefits.
Fees: $40 a month, $5 per person paid monthly
Website: Square (squareup.com)
If you’re considering whether an online payroll provider is right for your agriculture business, feel free to reach out to KCARD at (859) 550-3972 or via email at kcard@kcard.info.
Resources for further reading:
Recommended Payroll Services 2022 - For small businesses (top-payrollservices.com)
The Best Online Payroll Companies and Software Reviews of 2022 - business.com