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Is it necessary to have payroll services in a small business?

I've seen a lot of small businesses that don't even have payroll services, so why have it? Is it really necessary? By this I mean, can I just pay the employee in cash instead of having payroll system? It is just to much to deal with!!

Public Comments

1. Not as long as you have someone who can do payroll (including payroll taxes).
2. Not necessary, but what a tremendous load off ones mind to engage a payroll service! They calculate all the information needed for taxes and filing quarterly for a small amount of money from you. Just be sure to make a paycheck out to yourself so the records show that you paid into the social security system.
3. keep your costs low and your profits high payroll office means hiring someone for that specific task; if your business is really small you don't need it
4. If you have staff you will have to pay them with a system that provides all the legal requirements. I use MYOB payroll and also ACE is a good one. It is pretty straight forward but I do recommend to sign up with the support system, there is always help one phonecall away if you get stuck.
5. Yes it is.
6. If you have a lot of employee's it makes it easier. Send in the numbers to a company and have them do the math. If your small enough, it cheaper and just as easy to figure it up yourself. My old boss of three years did payroll himself with a computer program there were 25 people on the schedule. My new boss since july uses ADP, she also has at least 120 working at a time.