How to Pick a Payroll Provider

Are you an entrepreneur looking for advice on how to choose the right payroll company for your business? In this episode, Alisa will be discussing the importance of understanding the big picture when it comes to setting up payroll, from how the system will work with other systems and be easy to navigate, to considering customer service, job costing abilities, and time tracking. She’ll also be offering an overview of two popular services: QuickBooks Online Payroll and Gusto. QuickBooks Online has just launched a feature that allows employees to onboard themselves by setting up their direct deposit, filling out their W4, and other documents if necessary. Although the I9 is not filled out at this time, it is expected to be added in January 2023. Plus, get tips on talking to an accountant or bookkeeper about what payroll company they recommend and what they would use. Tune in now for all of this advice and more!

Key Highlights:

[00:01 - 02:20] Choosing the Right Payroll Service: QuickBooks Online and Gusto Payroll Explained

• Payroll companies should all pay payroll taxes correctly 
• Choosing a payroll system is not just about running payroll, but also the big picture 
• Consider factors such as ease of navigation, time tracking, and integration with accounting systems
• Good customer service is important for when things go wrong 
• We recommend Gusto payroll and QuickBooks Online payroll for their ease of use

[02:21 - 04:50] QuickBooks Online Launches Self-Onboarding for Employees, But Lacks in Customer Service and Paid Time Off

• Employees can onboard themselves through QuickBooks Online Payroll
• QuickBooks Online and Gusto both file new hire reports in your state
• QuickBooks Online has limitations with paid time off

[04:51 - 07:14] QuickBooks Online vs. Gusto: Automatically Calculate Paid Time Off and Send Out W2s

• QuickBooks Online payroll automatically sends out W2s to employees
• Gusto requires manual selection of how employees receive their W2s 
• Gusto calculates pay for new employees starting in the middle of a pay period 

[07:15 - 09:37] Get the Most Out of Your Payroll with QuickBooks Online and Profit & Loss Reports

• Companies charge between $400-$700 to set up a state payroll 
• QuickBooks Online payroll provides great job costing and time tracking 
• Profit and Loss by Client report allows you to see profit per client 
• Have conversations with clients if budgeted hours are exceeded 
• Consult accountant or bookkeeper for best payroll company recommendation

Resources Mentioned:

Gusto, QuickBooks Online

Key Quotes:

“It's really important that they provide good customer service because things go wrong and you're gonna need some help figuring things out.” - Alisa McCabe

“So when you're thinking about payroll for your company, look into all the criteria that are important to you and talk to your accountant, your bookkeeper, to find out what payroll company they recommend and what they would use.” - Alisa McCabe

Learn more by connecting with me through LinkedIn, Instagram, and Facebook. Head to our website and click on the Let’s Talk button http://www.firststepsfinancial.com

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