There are a variety of different payroll costs associated with running a small business, and it can be confusing when it comes to budgeting for all of them. Each company is going to be different and require certain things that other companies may not, so the price you end up paying is going to depend greatly on the needs of your company and industry. Below, we’ll talk about some of the factors that weigh into your overall costs, as well as other needs you should be aware of when choosing a payroll system.
The Most Common Payroll Cost Factors
Although there is quite a long list of potential factors that play into how much your payroll costs will add up to, a few key ones are on top of that list. Something that will definitely affect your business is the amount of employees you have, and how often they are paid. Another variable is if you have any out of state employees, and how many different states they are employed in.
Typically, payroll services have a base fee for holding an account with them, as well as either a fee per employee and/or per check. You’ll want to evaluate the fees associated with your payroll service and compare them with the needs of your company when deciding which service to utilize. Some companies aren’t as lenient as others, but if you use TRAXPayroll, we’ll tailor a plan that works best for your company’s specific situation.
Extra Fees and Add-ons
Beyond the different factors that factor into your overall cost, there are several services that typically come with a flat rate, but could also be dependent on company size and other things. Some other services you’ll need to account for include direct deposit, automated check signatures, tax filing for state and federal, as well as W2, 1099, and other tax forms that require processing for your employees.
You’ll also need to consider new hire reporting, which is required by law – and can leave you with a fine if you ignore it. Essentially, this requires you to submit information about new hires, such as employee name, address, and FEIN number to the new hire directory for your state. There are a few different steps to this process, so it can get a bit time consuming if you don’t have a full understanding of the regulations involved.
The Importance of a Good Payroll Management System
Between the various costs for different company sizes and requirements, extra fees related to taxes and check processing, and submitting new hires – there’s a lot of things to consider. All of these things can add up, so it is really important that you choose a payroll service that is willing to work with you and help decide exactly what your company needs.
TRAXPayroll understands that each company, as well as each industry is different in a variety of ways, including how their payroll needs to be managed. If you have any questions about our services or payroll servicing in general, don’t hesitate to contact us, and we’ll do our best to assist you.