5 reasons you should use a payroll service
Not long ago I received a call from the owner of the payroll company that we've used for the past seven years. She told me the company was going out of business, but it was transferring its clients to another service. The news took me by surprise because the company offered great service and I'd assumed it was doing well.
Then I wondered if this was a sign that we should just have our bookkeeper do payroll to save us money. Tempting, but then I thought of all the important tasks that payroll service companies can offer a veterinary business. Here are the top five reasons you should stick with—or start using—a payroll service.
1. CHECK SIGNING. Our practice has multiple locations, and I'm often out of the office on payday. The payroll service ensures the checks come pre-signed and in a sealed envelope.2. DIRECT DEPOSIT. Not only does direct deposit save team members the hassle of running to the bank to deposit their checks, it immediately processes payroll liability, so you don't have to worry about when each check will be deposited.
3. AUTOMATIC TAX WITHHOLDING FILING. This is another time-saver because the service calculates and submits all tax withholdings for a minimal fee. These withdrawals occur immediately, so be ready for a dip in your bank account.
4. ONLINE PAYROLL REPORTS. This feature allows you to view and save current and past reports, which you can then e-mail to your accountant and bookkeeper. The payroll service will also prepare tax forms that you can mail to team members.
5. TRACKING VACATION TIME AND OTHER BENEFITS. Payroll services make it simple to distribute bonuses, reimbursements, deductions, and vacation time.
I'm glad we stuck with a payroll service. As experience has proved, it will pay for itself over and over.
Veterinary Economics Editorial Advisory Board member Dr. Jeff Rothstein, MBA, is president of Progressive Pet Animal Hospitals and Management Group in Michigan.