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We currently use ADP as recommended by our first CPA, so was curious to ask our new CFO what he thought about switching to such a service. His response: "There
by jasonwilk 14y ago
We currently use ADP as recommended by our first CPA, so was curious to ask our new CFO what he thought about switching to such a service. His response:
"There are a few small payroll companies with similar offerings. However, I have had bad experiences with self-serve payroll services and this is one of the functions that you do not want to deal with, especially when mistakes/adjustments are made. The penalties are high for non-compliance and you want the ability to have a "live" person to deal with when problems surface. In the end, I highly recommend paying for the service as the costs are not extremely high. You can save a few dollars but it is not worth it. There are so many payroll companies out there and I'm surprised the VCs are backing this one"
Team have thoughts on this?
Regardless, congrats on the fundraising.
- edawerd 14y agoThanks! You're absolutely right. Many other self-serve payroll services that your CFO might be referring to place the burden on the employer to ensure they are compliant. These companies might only send you an email reminder to pay your taxes along with the amount to pay. If you forget or don't have the money, then you're out of luck and can face hefty government fines, just as your CFO says. We've built our system to ensure that the employer is 100% compliant. One way we do this is we actually impound all the taxes from the employer and pay the tax agencies ourselves on the employers behalf. We also file all forms on the employers behalf (after getting the necessary authorization to do so). Hope that clarifies a little bit how we are able to claim the same amount of service/compliance as more expensive options out there!
- jasonwilk 14y agoAbsolutely! Thanks for the clarity. Hope my comment was helpful to you guys.