Seth described some problems he’s seen with businesses trying to do their own payroll processing.

1) Misclassification of employees (W-2) vs Contractors (1099). In an attempt to avoid paying payroll taxes, an employer might try to claim that people working for them are contractors but if you are telling them when and where to work and giving them the necessary equipment to do the work then they are your employees.

2) Spending valuable time calculating and filing payroll amounts. Save time and money by outsourcing the work. Doing it wrong could result in fines many times higher than paying a service.

3) Not periodically evaluating other payroll providers. You may have been with a provider for years but it doesn’t hurt to look around for other options. There may be other companies with better technology and lower fees. ADP has a team that makes it easy to switch.

Call Seth if you want to stop doing payroll yourself or just to evaluate other options.