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Is it worth hiring a payroll company?

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  • The transcript of this audio snippet is below!
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In this audio snippet, you'll hear about:

  • A payroll company makes the process seamless and simple
  • Smaller private CPA's might handle it for you
  • Make sure you're comfortable with who you hire

Audio Transcript
Travis: I know the answer to this question for me personally, but this sounds pretty complicated and sounds like it might be worth hiring a payroll company to do it for you.
Yosef: Well...
Travis: Do you agree with that?
Yosef: Here's what I would recommend. There are a number of large payroll companies that make this process seamless and simple. Some are more expensive than others. There are also some private individuals –– private, you know, smaller CPAs that will do it for you.
Travis: All right.
Yosef: You would definitely want to make sure you are comfortable with whoever it is you are working with on this because employers have better things to do than sit around and worry about payroll taxes and they shouldn't have to worry about it.
Travis: Yeah, I agree.
Yosef: It's a very straight–forward process and you know...Any employer, if they're not getting the quality of service that they need in the area, they should definitely change because there are lots of people out there providing all types of services. Again, the employer should be comfortable and it's not that difficult for an employer to become comfortable, and make it as painless as possible.
Travis: So in your opinion is it worth the trade off of time versus money to get a payroll company versus doing it all yourself?
Yosef: Let me actually adjust the question like this. A typical business employee, or even a small corporation, with 10 or 15 employees can process their entire payroll for less than $50 a pay period.
Travis: Wow.
Yosef: I mean yes the larger companies like ADP Paychecks may charge you more. But again it affects you severely more.
Travis: OK.
Yosef: At $50 a pay period, or even let's say it's even $75 or $100 a pay period –– it's such a small amount of money when you look at the potential pitfalls that an employer might face by trying to tackle this on their own.
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