Wrestling with Payroll Management? How to Find Online Solution
It’s no cliché: Small businesses really are the backbone of the American economy. Representing 99.7 percent of all employer firms, nearly 25 million small businesses have created 60 to 80 percent of the new jobs annually over the past decade, according to the Small Business Administration.
Of course, employing all those workers means tax season lasts all year long for small businesses who must regularly deal with payroll taxes. If you are an average small business owner, you likely invest hundreds of hours per year managing payroll.
Is it any wonder more small business owners are turning to online services to streamline their payroll activities? Bank of America alone reports 1.8 million small business customers use their online banking and financial management tools. Millions more use a variety of online services and tools to meet their needs.
It’s no cliché: Small businesses really are the backbone of the American economy. Representing 99.7 percent of all employer firms, nearly 25 million small businesses have created 60 to 80 percent of the new jobs annually over the past decade, according to the Small Business Administration.
Of course, employing all those workers means tax season lasts all year long for small businesses who must regularly deal with payroll taxes. If you are an average small business owner, you likely invest hundreds of hours per year managing payroll.
Is it any wonder more small business owners are turning to online services to streamline their payroll activities? Bank of America alone reports 1.8 million small business customers use their online banking and financial management tools. Millions more use a variety of online services and tools to meet their needs.
If you’re considering an online payroll service, or aren’t 100 percent satisfied with the one you’re currently using, here are some tips for finding the solution that’s right for your business.
* Look for a service that is specifically designed for small businesses, rather than one that also serves mid to large companies as well. “As a small business owner, your needs and payroll tax obligations can differ significantly from those of larger organizations,” says Barbara Weltman, a financial services expert who specializes in small businesses. “One size definitely does not fit all when it comes to a payroll solution.”
* Seek guarantees. Does the service pledge to pay any fines that might result from their incorrect calculations? Errors in federal, state or local withholdings can add up to painful fines for small business owners. Bank of America will pay fines that result from their calculation errors.
* Is the service fully integrated with your online accounts, allowing you to manage all your finances with a single password?
* While all online payroll systems should provide you with instant calculations of federal, state, local and voluntary withholdings, you’ll also want to look for one that goes the extra mile. Weltman favors Bank of America’s Easy Online Payroll, which offers 21 different payment types, such as salary, hourly, overtime, tips and bonuses; vacation and sick day tracking; professional printing of paychecks and stubs from your computer; electronic one-click federal tax filings and payments; and processing, electronic filing and two printable, signature-ready copies of W-2, 940, 941 and 944 forms.
* What incentives will the service provider offer as thanks for your business? Bank of America’s service is free for small businesses that pay all employees by direct deposit to accounts at Bank of America. To learn more, visit http://www.bankofamerica.com.
