We’re sensitive to our dentists’ needs to save money where they can, and we applaud their thrift. But when it comes to payroll processing, we’re quick to say: Use a payroll service!
Here’s why:
- Payroll services know what they’re doing and are set up to do it efficiently. Their fees are reasonable. By contrast, the cost of missing one federal tax deposit can amount to a full year of payroll service fees!
- Payroll service providers will set up your payroll reporting such that you comply with the labor laws in each state – including overtime provisions and mandatory final paycheck guidelines. It’s much easier to get it right the first time than to experience costly (and unpleasant) wage audits and lawsuits.
- Many payroll service providers offer automatic time clocks that connect to their service to make it even easier to align with state law.
Given the choice, we recommend that you opt for processing payroll two times per month versus every other week. The biweekly option creates 2 months in which you have three payrolls. It creates a bit of challenge to manage cash flow and financial reporting, especially when you have bank covenants to which you must adhere.
Life often presents many challenges and complexity. Payroll doesn’t have to be one of them.
