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5 Ways Big Payroll Services For Small Business Are A Bad Idea


A national provider of payroll services for small business may be a bad idea. Customers are leaving because these big payroll companies can’t accommodate the unique needs of small business. In this article, we outline some of the reasons local firms are a better option for local companies.

Payroll Services for Small Business

Ideally, payroll services for small business should be agile and able to fit specific needs and situations. And while leading national providers may offer a number of packages, at the end of the day, there is no way that their packages can encompass all of the potential intricacies of a given small business and their payroll service needs.

Furthermore, a small business’ payroll needs are likely to evolve over time. But if you are locked into a contract for a specific package with a large provider, making changes to the package before the term of your contract is up can be expensive and it can be a hassle. Alternatively, by partnering with a local firm, small businesses can work more closely with their payroll provider to adjust the specific of payroll services as frequently as needed, often foregoing the headaches and costs associated with making these types of changes.


Tougher to get a dedicated representative

Payroll Services For Small Business

When dealing with a national payroll service provider, the ability to have a single, dedicated representative assigned to your account may be limited. Furthermore, many have found that account representatives may not be as up to date as necessary for comprehensive payroll compliance and latest industry trends. This can lead to a number of problems, ranging from outdated payroll practices that do not effectively take advantage of emerging technologies in a way that applies specifically to your business or, at worst, a serious issue with compliance that leaves your business vulnerable to fees and penalties.

Having a dedicated account representative that can get to know the ins and outs of your business means that representative may be able to come up with payroll solutions that larger providers will not think of. Furthermore, they also have a lot more flexibility in their ability to deliver those solutions to clients. And when you have a question or concern, you will be able to reach someone at the payroll company directly who immediately knows who you are and can speak to your concern, rather than dialing a large call center or reaching a representative that is overtaxed with a huge roster of clients and barely knows your name, let alone your business.

Hidden fees

One of the most prominent complaints we have heard about large payroll providers is that there are a number of hidden fees that are not disclosed in an appropriate way when contracts are signed and that can have a significant impact on the bottom line for small businesses. Because the company’s sales people are so driven to close deals and meet quotas, they seem to conveniently forget about those fees, meaning that the package you have agreed to engage in for six months of longer costs significantly more than you have anticipated.

By partnering with a local payroll firm, small businesses will know upfront exactly what they will be paying each month with no hidden fees tucked into glaringly small print.


Payroll Services For Small Business

And you can never escape …

Similar to the issues with hidden fees and AWOL account representatives, many small businesses who sign up for a large payroll service find that once they have had enough of the runaround and would like to terminate their package, it is almost impossible to get through the process. And once you have finally closed the account after myriad phone calls and emails, there may be yet another fee waiting for you at the end of the arduous process.


Workplace compliance posters ≠ HR support

As your company grows and changes, your needs are likely to extend beyond simple payroll services. And while national payroll providers are quick to send free copies of those obligatory workplace compliance posters that we all know and love, their HR services tend to end there. When the day comes that you are in need of help with any aspect of human resources — be it creating a comprehensive employee handbook or figuring out how to best provide benefits to employees — having an established relationship with a firm that knows your business can eliminate a ton of the obstacles to what can be an extremely complex process.

If you own a small business and are looking to bolster your bottom line and create time to focus on money-generating strategies, give us a call. Do not get sucked into the cycle of paying too much for one of those companies billing its offerings as payroll services for small business while offering one-size-fits-all packages that fit few well and none perfectly. We are happy to provide a free consultation to discuss exactly why we are a better fit for your and your business.