How and when to select a payroll provider

If you’ve grown your small business enough to hire employees, you probably know how much of a headache payroll can be. A payroll provider can help ease this burden by automating your payroll, but selecting the right provider for your needs is important. 

And while we provide that service with Payroll by Fingercheck, we thought it would be helpful to explain how automated payroll helps you run your business better. 

Why small businesses need payroll automation

Many small business owners can’t afford to spend time on manual payroll processes. Payroll is a complex and time-consuming process. Manual payroll also can be expensive because many business owners outsource it to accountants or bookkeepers.

A Bloomberg Tax survey found that over two-thirds of business owners say payroll is frustrating, complicated and confusing. This means they look for a vendor to provide relief instead of tackling payroll manually. 

The survey reported that business owners said handling payroll takes three weeks yearly. And that’s time taken away from growing the business.

Automated payroll software saves time and money by putting the entire process on autopilot — from calculating taxes and deductions to preparing W-2 forms for employees at year-end. Automated systems also reduce errors by providing step-by-step guidance through each task, ensuring accuracy from start to finish. Automated systems also help ensure compliance with federal, state and local laws, which gives business owners peace of mind.

Common payroll errors

Manual payroll entry opens small businesses to a host of potential errors, among them:

• Inaccurate data collection and processing. Maintaining accurate, current information for every employee is essential, which is difficult to achieve with manual entry. 
• Mishandling employee classifications. You must handle each differently if you have a mix of full-time and part-time employees and independent contractors on your payroll. Payroll automation helps you classify everyone correctly.
• Timecard and overtime errors. It’s difficult to track employees’ hours and overtime with manual payroll accurately.
• Payment miscalculations. You must use the correct pay rate, deductions, differentials and other information when calculating paychecks.
• Noncompliance with regulatory matters. Keeping up with the latest laws and often changing employment regulations is a nightmare without automation.
• Tax errors. Tax compliance is essential to avoid big problems with the IRS. The IRS reports that the most common errors small businesses make on their taxes are underpaying estimated taxes, depositing employment taxes incorrectly, filing late, and not separating business and personal expenses.

Any of these issues can result in major headaches for your business if you get it wrong. With payroll automation, you eliminate much of the possibility for human error, and you can rest easy, knowing the system handled everything correctly.

When is the best time to select a payroll provider?

Once you’ve added a second employee, it’s time to consider finding an automated solution to payroll for small businesses, such as Fingercheck Payroll. You risk making costly errors like those mentioned above if you rely on manual payroll processes.

You may also wish to select a new payroll provider if your current provider isn’t meeting your needs. If you decide to switch, aim to do so either at the end of a quarter or the end of the year. This way, you can start the new year with a clean slate without transferring historical data from your previous provider. 

Before making a switch, you also should consider how well-informed you are about your needs and requirements before deciding which payroll provider would work best for you. Research different options before making an informed decision about what kind of payroll provider will suit your business best at this point in time. That way, you can avoid choosing an outdated provider that may cause problems.

Features to look for in a payroll provider

Whether you’re seeking a payroll provider for the first time or you’re looking to make a change, it’s important that you get the right provider for your needs and budget. Fingercheck’s award-winning solution eliminates the frustration and confusion of manually entering payroll, giving users one dashboard to manage their payroll needs — with simple pricing that works with any budget. Here are some of the features we offer that will help you achieve payroll automation:

• Unlimited payroll at one price. You pay one low monthly fee instead of paying fees each time you process payroll. Most businesses cut their costs in half by choosing Fingercheck’s flat-rate pricing.
• Convenient mobile app. Get 24/7 access to your payroll from anywhere. You get payroll oversight and management while you’re on the go, whether you’re traveling for business or taking time away. 
• Employee engagement. Your team gets access to payroll from the mobile app, too. They can log into their accounts anytime to make updates, monitor their payroll information or submit finance disputes.
• Flexible pay schedules. Determine the best timing for your employees’ paychecks, and set it up according to your needs.
• Next-day pay. If you cannot process payroll by the due date two days prior, Fingercheck’s Next-Day Pay allows you to run payroll by 6:15 p.m. EST the day before. (A small service fee and certain terms and conditions apply.)
• Pay On-Demand. Instant payments are quick and easy for employees, too. With Fingercheck’s Pay On-Demand, employees can take control of payday on their own and access their earned wages when needed rather than waiting for payday to arrive.
• Set-and-forget autopay. Just like it sounds, this feature allows you to set things up once and let our platform handle the rest.
• Fingercheck PayCards. Give your employees more payment options by delivering payroll on debit cards. They’re convenient, reloadable and easy to use, and employees can use them at any location that accepts debit cards.
• Fingercheck Finance. With our Fingercheck Finance program in partnership with OnDeck, you never need to worry about making payroll. In lean times, you can use one-click payroll financing directly from your Fingercheck dashboard.

A subpar provider can hurt your business

A poor payroll provider can cause problems for your business. The biggest issue is that the platform you choose may not be able to handle your payroll requirements, resulting in employees being underpaid or overpaid. This also can lead to fines from the IRS and other government agencies if you file late or inaccurate tax returns.

Late payments are another potential problem. If your provider has difficulty processing timely payments, it could impact employee morale. It also might result in fines if there are state laws about when employees should receive their wages.

One of the biggest issues with choosing the wrong payroll provider is the potential for tax errors and penalties due to late filings or misfiled forms. This results from using an unreliable system that doesn’t know how to classify employees, calculate withholdings and ensure 100% accuracy with deductions, exemptions and more. You might pay too little or too much taxes each month, which costs more money than necessary.

Final thoughts

If you’re looking for a payroll provider, it’s important to do some research first to choose the right one for your business. Check the costs, features and benefits before selecting a payroll provider so you can choose the best one for your current and future needs.

By selecting Fingercheck as your payroll provider, you can access easy, automated processing that ensures total accuracy for your payroll. We will eliminate the risk of errors and subsequent problems that can result if you are out of compliance with federal, state and municipal tax codes. Meanwhile, we can help ensure you’re paying your employees accurately and on time, keeping them happy.

To learn more about Fingercheck and our range of features and benefits for automated payroll, visit our website and get the scoop straight from our customers: We consistently outrank others regarding ease of use, onboarding, implementation and other categories on the G2 software review platform. Let us handle your payroll so you can handle your business.