By: Angie Walters
If you are one of the many dental practices considering outsourcing your payroll, then Well Done! Managing your practice’s payroll can take up a lot of time, and result in a lot of extra work for an already busy dental office. Fortunately, there are a number of companies that can manage your office’s payroll efficiently and with the highest attention to detail. Outsourcing your payroll services to a professional provider can be far cheaper than hiring staff, systems, system upgrades and the staff training required to stay current on the many federal wage laws and regulations surrounding payroll.
When you outsource, the payroll provider will have highly trained staff and payroll specific systems eliminating all of the financial burdens associated with managing the payroll yourself. Even better, reputable providers take full responsibility in the case of errors (not that they should be making any errors!)
There are a number of payroll companies in the marketplace, which means that there are a lot of options available to meet your practice’s specific needs. The following tips, along with recommendations from your colleagues, can help you choose a payroll provider that both seamlessly manages your finances and has a proven commitment to legal compliance.
First, the IRS is a great resource in choosing the right payroll company. In light of some serious fraud in the payroll industry, the IRS issued their recommendations for choosing a reputable vendor. Employers should enroll in the Electronic Federal Tax Payment System, and your payroll vendor should pay your practice’s taxes through this service. You will then only need to log in occasionally to verify that your taxes have been paid.
The IRS also recommends that businesses not change their address of record to the payroll vendor. In the event of any tax irregularity, the IRS should be communicating directly with you to resolve the problem. The IRS has a list of payroll providers who have met their rigorous standards for certification. Choosing a company from the IRS’s certified payroll providers list will ensure that you’re working with one of the best in the industry.
A few important questions to ask as you interview potential providers are:
- What services do they offer and what do they include?
- What support do they provide?
- What are their charges and are there any hidden extras?
- What security and backup systems do they have in place to protect your information from theft and/or damage?
You’ll also need to consider your practice’s specific payroll needs. Many payroll processing companies offer specific plans for dentists, and have experts who can answer any questions. Working with a team that has some familiarity with the unique needs of dentists can be extremely reassuring when you’re dealing with a challenging tax issue.
Recommendations from dental professionals you trust are likely your most valuable resource. Ask your colleagues which company they use, and whether they would recommend them. You may be able to give a few companies a “test-drive” to find the right fit, so it’s a good idea to get two or three recommendations.
Managing a dental practice is hard work, and being able to outsource some of the time-consuming and expensive administrative tasks is a great way to streamline your day-to-day business practices. Not only will you have the luxury of a little more free time, you can also be assured that your employees and the IRS are happy.
If you have any questions or want to make sure your practice is being managed appropriately, please contact Angie Walters at AWalters@GPPcpa.com or 214-635-2547.
Note: This content is accurate as of the date published above and is subject to change. Please seek professional advice before acting on any matter contained in this article.