Remembering TCPaul, 2016-2019

Payroll

For those of you who utilize a payroll company (ADP, paychex tttnoregrets01/09/19
If you only have one, two or even three employees, ADP or Pa caj11101/09/19
One comment on this: make sure that the service you select i guyingorillasuit01/10/19
I use square and it's fairly cheap. I think like 30 bucks fo captain01/10/19
If you only have a couple employees it may be more cost effe bittersweet01/11/19
We use ADP. Don't know the cost. Not a partner. 7 Attys, 1 p jmoney01/12/19
ADP is probably more worth it if you have a total of 14 peop caj11101/14/19
This is easy. I use Gusto. Got myself and one employee rig bigbossman01/14/19
I second Gusto. I use it for my 10-employee company. It make jstalin01/16/19
tttnoregrets (Jan 9, 2019 - 9:40 pm)

For those of you who utilize a payroll company (ADP, paychex, etc.) for processing payroll, would you minding posting your costs for such a service and if you are paying bi-monthly or bi-weekly.

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caj111 (Jan 9, 2019 - 10:53 pm)

If you only have one, two or even three employees, ADP or Paychex is way too expensive. I know someone with two part-time employees who she pays bi-weekly, she uses Paychex and each payroll run costs $ 150, or $ 3900 for the year plus whatever one-time setup costs she had to pay.

The first place I would check for a payroll service is the bank where you have your business accounts. Many banks offer payroll service, as they have direct access to where they money would be coming from, and they charge far less than ADP or Paychex or even a lot of smaller payroll services.

I am a tax practitioner and I offer payroll to my clients but it's not a line of business I readily pursue, as it is labor intensive, the payroll software is expensive and I can only charge so much. I specifically encourage clients of mine (whose business and/or personal tax returns I'm already doing) to check with their bank first and if the bank's charge is low enough, as it usually is, I recommend they just let the bank do their payroll.

I do have one client with eight employees (including himself, the owner of the business) and can offer him a better deal than his bank would. The way my software works, there are certain upfront fixed costs with each new client whether there is one employee or 100, and I have to recover those costs. It can seem insanely expensively to do the payroll for just one employee but each employee thereafter is incrementally cheaper.

Bottom line - if you are a small business (definition of "small" may vary) see what your bank can do and maybe check around for a local payroll service. Don't bother with ADP or Paychex, they are just too expensive for a small business.

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guyingorillasuit (Jan 10, 2019 - 12:22 am)

One comment on this: make sure that the service you select is familiar with the rules of your city and county. For instance, we have peculiar withholding rules in San Francisco that Paychex knows and follows. Someone who is less expensive may potentially create withholding errors and expose you to lawsuits, audits, and all kinds of problems. I would ask local practitioners who they use, and have a couple telephone conversations with different providers.

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captain (Jan 10, 2019 - 9:56 am)

I use square and it's fairly cheap. I think like 30 bucks for timecards, then 5 dollars per employee. They file all the federal, state and local paperwork including new hire paperwork as well.

Granted, they take a sh1t ton in fees (2.75% per transaction) but there are no other fixed costs. If you use them for invoicing and have your employees pay with check or ACH, you don't even have to pay the transaction fee. Or you can just pass it on if you want to accept credit cards.

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bittersweet (Jan 11, 2019 - 3:29 pm)

If you only have a couple employees it may be more cost effective to do it yourself. It's not difficult, just tedious. I did this for a small company before going to law school. It can be done by your bookkeeper or whoever id doing your billing.

If that is not cost effective for your firm you may be able to farm it out. There are some small bookkeeping companies that may be willing to cut you a deal in exchange for some legal work.

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jmoney (Jan 12, 2019 - 12:48 am)

We use ADP. Don't know the cost. Not a partner. 7 Attys, 1 paralegal that bills. 6 non billing staff.

Weird for a small firm - we have loads of steady income from government clients and we have a PI practice that only takes $100k+ cases with clear liability and ability to pay. We have a estates/trusts/wills/real estate practice that steady grinds, too. Growing.

I imagine it works for us. Partners are business people to the core.

Not sure if this helps but wanted to give you a data point.

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caj111 (Jan 14, 2019 - 1:49 pm)

ADP is probably more worth it if you have a total of 14 people; still there are probably cheaper payroll services out there that could do the same thing for less, particularly if everybody works and lives in the same state. Changing from one payroll service to another, especially when you've been using the same payroll service for years, is a major hassle and the partners probably just don't want to deal with that.

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bigbossman (Jan 14, 2019 - 2:00 am)

This is easy. I use Gusto. Got myself and one employee right now, had two for a while but you know they come and go. Anyway it is like $50 a month plus $6 per employee or something. It's all online, pretty easy though and they pay as often as you want and direct deposit. They deal with all the stupid state rules, filings and withholdings too. We pay every week, no problem and no extra cost. Soooo much cheaper than the big names, please check it out. I've used it two years and am pretty happy.

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jstalin (Jan 16, 2019 - 4:03 pm)

I second Gusto. I use it for my 10-employee company. It makes payroll pretty easy.

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