If you have employees, you are going to have to remit payroll taxes. I highly suggest you leave this task to the experts and hire a payroll company.

Depending on your market, you’ll be able to choose between one of the two larger companies, Automatic Data Processing (ADP) or Paychex. Any number of smaller, local payroll companies may also be available to you.

My accountant recommended ADP, so I used them when I was running my software testing company, Know It All. Right now, I use Paychex. We made the switch because they are slightly cheaper to use than ADP and provide comparable service. I never evaluated any local companies, so I am not in a position to comment on how they stack up against the nationals.

In conclusion, I choose my original payroll company, ADP, because it was recommended. However, when presented with cheaper pricing from a reliable alternative, I took it.

Choosing a payroll service is no different than choosing any service your business requires. It is important to know your needs and find the company that can meet them at the best price.

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