Should You Handle Your Own Payroll? A Personal Experience
Managing payroll can be a daunting task for small business owners. Are you currently doing it yourself, or have you enlisted the help of an external firm?
Recently, I’ve encountered significant challenges with my accounting firm, which oversees my payroll. After years of relying on their services, I find myself considering the option of managing payroll independently. It has raised some critical questions for me.
What Payroll Services Are You Using?
For those who have made the leap to handle payroll on their own, what tools or platforms do you rely on—ADP, Gusto, or something entirely different?
Would You Recommend DIY Payroll?
I operate a small business in Maryland with two to three employees, and I’m eager to gather insights from others who have navigated this path. Your experiences could guide my decision-making as I weigh the pros and cons.
Update: A New Chapter in Payroll Management (September 10, 2024)
In light of ongoing complications, I’ve made the decision to reactivate my Gusto account, which my CPA previously managed. After discussing the issues we faced with Gusto, I realized that my accountant’s handling of payroll had become problematic.
For reasons unknown, my CPA transitioned from Gusto to ADP in July, resulting in no payroll processing for the last two months. They continue to cite migration issues between the two platforms as the cause for the delay, which has been incredibly frustrating.
While I’m irritated that these problems arose, I now feel a sense of relief and empowerment taking charge of my payroll. This experience has underscored the importance of having direct control over crucial business functions.
I want to extend my heartfelt thanks to everyone who provided feedback and shared their advice on my original post. I truly appreciate the support during this challenging time!
1 Comment
bdadmin
It sounds like you’ve been through quite a challenging experience with your current accountant. Payroll is a critical component of running a business, and it’s essential to have a reliable system in place, especially with a small team like yours. I commend you for taking proactive steps to regain control over your payroll process.
Now that you’ve reactivated your Gusto account, you’re in a much better position to manage payroll independently. Here’s a breakdown of some thoughtful considerations and practical advice for handling payroll yourself, along with some options beyond Gusto if you’re interested.
Alternatives to Gusto
While Gusto is an excellent platform due to its user-friendliness and solid customer support, there are a few alternatives you may want to explore if you ever reconsider:
ADP: This is a widely recognized and reputable option, often favored by larger organizations. However, it has a steeper learning curve and can be costly for small businesses.
Paychex: Known for robust features, Paychex offers payroll processing along with HR services, which can be beneficial if you’re looking for something more comprehensive. It’s scalable as your business grows.
QuickBooks Payroll: If you already use QuickBooks for accounting, their payroll service integrates seamlessly and is efficient for small businesses. It offers a familiar interface and many automation tools that can save you time.
Zenefits: A strong choice if you’re also considering HR features. Zenefits manages both payroll and employee benefits, which could streamline processes if you need to manage both aspects.
Should You Do It Yourself?
Pros of Handling Payroll Yourself:
Cost Savings: You can save on fees charged by payroll firms or accountants, which can be significant, especially for a small business.
Control and Access: Managing payroll yourself means you have direct access to all payroll data and the ability to make quick changes as needed, without waiting on an external party.
Customization: You can tailor employee benefits and payroll options more directly, ensuring that everything meets your team’s needs.
Cons of Handling Payroll Yourself:
Time and Effort: Payroll can be time-consuming, especially if there are changes in tax laws or compliance regulations. You’ll need to stay educated about state and federal payroll tax regulations.
Complexities: Managing tax filings, staying compliant with labor laws, and addressing payroll errors can quickly become complicated, particularly when scaling your business.
Practical Tips for Successful Payroll Management
Educate Yourself: Take some time to familiarize yourself with Maryland’s payroll laws, including tax rates, benefits, and required filings. The Maryland State Department of Assessments and Taxation is a great resource.
Utilize Software Features: Gusto offers excellent support documentation and tutorials. Make use of their resources to automate as much as possible, reducing the chance for human error.
Schedule Regular Payroll Runs: Set a schedule that works for you and stick to it. This will help prevent delays and make payroll processing a regular, manageable task.
Documentation: Keep detailed records for all your payroll transactions. This not only helps with tracking expenses but also simplifies tax time.
Double Check Everything: Before finalizing payroll, always check figures, especially for overtime, holiday pay, and deductions.
Seek Help When Needed: Don’t hesitate to consult with a tax professional or a small business advisor occasionally. This can be particularly beneficial during tax seasons or if you have questions about specific situations.
Conclusion
Reactivating your Gusto account is a good first step, and I believe it will empower you as a business owner. Taking charge of your payroll will provide you with more insight into your business’s operations and expenses. However, always be mindful of its complexities and seek support if you feel overwhelmed. By combining the right tools with diligence and education, you can successfully manage payroll and keep your business thriving! Good luck, and don’t hesitate to reach out for further clarification or help along the way.