Carefully Choose Your Payroll Service Provider to Prevent Fraud

Choose Your Service Provider Carefully to Prevent Payroll Fraud

You’ve worked hard to make your business a success. But, you didn’t get there all alone. In fact, you fully understand the importance of delegating responsibilities to get things done. One of the things that you may choose to outsource to a third party is payroll.

A professional payroll service provider is an invaluable asset for a small business owner. But, you must beware of fraud, according to the IRS. It’s vital that you ensure your payroll service provider is legitimate to avoid becoming a victim.

What Is Payroll Services Fraud?

A payroll service provider will generally take care of every aspect of payroll from cutting checks to employees to filing taxes. The vast majority of payroll service providers do exactly what they are supposed to do when they’re supposed to do it. However, some payroll service providers aren’t so reliable. Common issues with payroll services include:

  • Missing or incomplete payroll data,
  • Missed or inaccurate deposits for taxes,
  • Not filing payroll tax forms on time
  • Disappearing with the client’s money

How to Avoid Payroll Services Fraud

If you’re thinking about hiring a third-party payroll processing service, you want to be very careful. Don’t just go with the first listing in the phonebook or the company that’s cheapest. You’ll likely be disappointed. Instead, follow these simple steps to ensure you’re dealing with a reputable payroll processing company:

  1. Ask for Referrals – One of the best ways to find a payroll company that you can trust is to ask for referrals. You can rest assured that if they’re happy with the service, they’ll let you know. Likewise, if the payroll company hasn’t pleased them, you’ll find that out too.
  2. Read Reviews – When you’re looking for a payroll service provider, reviews can be a huge help. Be sure to read both positive and negative reviews to get a feel for the overall quality of the service. Be wary of payroll companies with very low star ratings or no ratings.
  3. Ask for References – A reputable payroll service won’t have any problem providing you with names and contact information for current or past clients. Be sure to follow up with these individuals to learn more about their experience.
  4. Check the Company’s Professional Standing – One of the best ways to find out if a company is by checking their status with the Better Business Bureau or Chamber of Commerce. Companies that demonstrate adherence to best practices and good service will be highly rated.
  5. Stay in the Loop – Just because you’ve hired a payroll service, you’re still 100% responsible for the payroll and tax payments. It’s vital that you stay involved with the process and fully aware of everything that’s going on so you can make adjustments accordingly.

Professional Payroll Services You Can Rely On

As a business owner, you have a lot to do every single day. While you may try to do it all yourself in the beginning, over time you’ll realize it’s not truly possible. Some things are better outsourced to a third-party provider. Such is often the case with payroll services.

Handing this time-consuming and tedious task off to someone else sounds like a great idea, but beware. Not all payroll service providers are created equally.

It’s important to ensure your employees are paid on time and all payroll taxes are filed correctly. Keeping up with payroll can be difficult, but it doesn’t have to be. We can help whether you have 5 or 500 employees.

Our payroll experts will save you precious time, ensure you’re compliant with federal regulations and keep your employees’ paychecks flowing. Request a free quote today or contact us to learn more about the professional payroll services offered by ASAP Payroll.

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