Expert Articles

How to Choose the Right Payroll Service For Your Business

Patty Dunigan

VP of Sales and Marketing

BizChecks Payroll

Thousands of companies have made the decision to streamline business operations by outsourcing their payroll processing. Outsourcing your payroll will reduce the risk of tax penalties for late filings and payments (The IRS penalizes approximately one out of every three business owners for payroll errors), provide you with valuable management tools and resources and free you up to do what you do best…grow your business.


Making the decision to outsource your payroll is easy….deciding which payroll service to utilize is a little more complicated. Payroll companies range from large national companies with hundreds of thousands of accounts, to small bookkeepers with only several clients. It is important that you find a payroll service that is large enough to provide the services you require, yet small enough to offer the personal attention you need. Here a few tips on how to pick the right service:

1. Define your needs

Before you begin the search for the right payroll company outline a list of the services you will need over the next year. How many employees will you be paying? How often? Do you have employees working in different states? What other types of services do you require? Worker’s compensation? Retirement planning? Human resources services?

2. Referrals

Once you have defined your needs, the best way to get started is to talk with someone you trust. Have a conversation with your CPA, attorney or banker and ask if they refer to a certain provider. Ask business owners in your community who they use to process payroll. Talk with other business owners in your field of expertise about how they handle their payroll processing. Most business owners will be more than happy to share their experiences.

3. Pricing

Understand what you will be charged for the services. It is critical to make sure that you are not being over-served. The larger services often try to bundle the payroll package with additional services that will drive up your price. Do you need a 401k plan or will a simple IRA suffice? Do you need a full blown Human Resources Package for a company of 8 employees? What will you be charged for these additional services?

4. Responsibility

It is important that you work with a reputable company that explains your responsibilities to you. Is the payroll provider bonded and insured? Did they explain to you that ultimately the business is responsible for the tax liability? Have they encouraged you to register for EFTPS and web-file so that you can verify the tax payments? It is not only critical to select the right payroll provider but also to remain actively involved by asking questions and verifying the tax payments. Click here to visit the IRS website.


Patty Dunigan is a partner at BizChecks Payroll and the vice president of marketing and Sales. With over 25 years of experience as Director of Sales for two national companies, Patty felt strongly that there needed to be a greater commitment to the business owner. Patty has worked hard to earn the respect of the CPA community in Massachusetts and serves as a valuable resource for many local accountants. Patty holds a BA from University of Massachusetts at Amherst.


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