Small Business Smarts: What to Ask When Selecting a Payroll Provider
Part of a series | Small Business Smarts
Choosing the right payroll provider is crucial for small business owners seeking to streamline their operations and ensure compliance with tax regulations.
Key takeaways
Evaluate the scope of services provided by potential payroll partners.
Prioritize a provider with expertise in tax compliance.
Look for easy-to-use technology that integrates with your existing systems.
Ensure 24/7 customer support is available for urgent payroll issues.
Select a provider that can grow with your business and offer a clear pricing structure.
Selecting the right payroll partner for your small business
Running a small business involves making numerous decisions that affect your bottom line. One of the most significant choices you will face is selecting the right payroll provider. This decision can alleviate stress and help ensure compliance with tax regulations, so it’s essential to approach it thoughtfully.
In a conversation as part of the Small Business Smarts series, entrepreneur Vicky Jordan spoke with Laci Buzzelli, senior vice president and general manager of small business services, ADP, about what questions a business owner should ask when selecting a payroll services provider. The following insights from their conversation offer guidance for this important decision.
Understand the services provided
When looking for a payroll provider, it’s critical to evaluate the breadth of services they offer. Not all payroll providers are created equal; some may only cut checks, while others handle tax calculations, filings, wage garnishments, and year-end forms. Ideally, you want one partner managing all these functions to reduce errors, save time, and mitigate the risk of penalties.
Stay compliant with tax regulations
Tax compliance can be a minefield for small businesses, especially with frequent changes at the federal, state, and local levels. Choose a provider that has a solid grasp of tax compliance and can offer dedicated expertise. Look for features like built-in updates to accommodate new regulations and processes that help identify potential issues before they become costly fines.
Evaluate technology and integration
In today’s tech-driven world, even small businesses need efficient payroll solutions. However, not all business owners are tech-savvy. It’s essential to find easy-to-use tools that integrate well with your existing platforms. Inquire about the technology the provider uses, and ensure it simplifies your payroll process rather than complicates it. When time tracking seamlessly integrates into payroll, it reduces the likelihood of errors and keeps everything on track.
Consider the level of support
Access to responsive support is crucial, especially since small business owners often manage payroll tasks outside conventional business hours. Understand what customer support looks like with potential providers. Can you reach a real person if you have a question? Are payroll specialists available 24/7? Ensuring that strong support is available can be a gamechanger when facing time-sensitive payroll issues.
Plan for future growth
A payroll provider should not only meet your current needs but also accommodate your growth. Investigate the provider's pricing structure and ensure it clearly outlines everything included, such as payroll runs, tax filings, and integration capabilities. This awareness can help you avoid unexpected fees as your business scales.
Conclusion
Keep these considerations in mind to be better equipped to select a payroll partner that not only helps you streamline your operations but also supports your business as it grows. Ultimately, the right provider can be invaluable in ensuring you pay your team accurately, stay compliant with taxes, and set the foundation for scalable success.
Learn about ADP small business payroll services: simpler, smarter and backed by experts
About Victoria Jordan
Victoria (Vicky) Jordan is a seasoned entrepreneur and advocate for small business owners, dedicated to providing resources and insights that empower them to thrive in today’s competitive market.
About Laci Buzzelli
Laci Buzzelli is Senior Vice President and General Manager of Small Business Services at ADP.
Transcript of video titled, “Small Business Smarts: What to ask when selecting a payroll provider”
Vicky Jordan: When you're an entrepreneur, every investment matters. But what should every small business owner consider when they're looking for payroll support?
Jordan: Hey, Laci, when small business owners are ready to find a payroll provider, where do they start? What should we be asking them?
Laci Buzzeli: Hey, Vicky, when you're a very small business, the payroll provider you choose can take stress off your plate. Vicky, are you ready for a couple of key questions to consider that can help you pick the right partner for your business?
Jordan: I am ready, let's go.
Buzzeli: You got it. Ask what services they provide end to end. You want to know if they just cut checks or if they also calculate taxes, file them for you, and handle things like wage garnishment and all of your year-end forms. For a small business, having one provider that handles all of this for you can help to reduce errors, save time, and lower your risk of penalties.
Buzzeli: Got it. So the next thing is how they help you manage payroll and tax compliance. Regulations can change often at the federal, state, and even local levels, and missing something can be expensive for a small business. Look for a provider with dedicated tax compliance expertise, built-in updates to reflect new rules, and processes that help detect issues before they even turn into fines.
Jordan: Most of these companies will be super tech-heavy, right? But what if you're not a very tech-savvy person?
Buzzeli: Sure, that's a very common question to ask, whether or not you're tech-savvy. You'll want to find tools that are easy to use and ones that will work with your existing platforms. So a good question would be what technology do you use, and how does it integrate with the tools I already have? For a small business, easy-to-use payroll software, whether it's on a desktop or mobile, can make a real difference.
Buzzeli: And when systems connect, like time tracking flowing into payroll, it can help on time and reduce errors.
Jordan: Copy. Okay. Tell me what else I need to ask.
Buzzeli: Sure. Another really important question is what support actually looks like. If you have a question or run into an issue, how do you get help? Can I reach a real person? Are payroll specialists available when you need them? Small business owners are often handling payroll outside of traditional business hours, so responsive 24/7 support can matter a lot, especially when payroll is time-sensitive.
Jordan: Absolutely. I need to know how to get to an actual person.
Buzzeli: Absolutely. Of course you do. The next thing you want to think about is the future. Can they grow with your business? What's the pricing structure? You want a provider that fits very small businesses now but can also support you as you add employees, time tracking, benefits, and more advanced HR tools. On pricing, make sure you understand exactly what's included—payroll runs, tax filing, year-end forms, integration—so you can have a true comparison of value, not just the headline number when there are a lot or could be added fees.
Jordan: This helps so much. Thank you, Laci. Choosing a payroll provider is about more than running payroll. It's about finding a partner that can help you pay people accurately, stay on top of taxes and compliance, and support your business as you grow. Go to ADP.com to learn more.
