Personal finance, tax & small business expert Eric J. Nisall
Last Updated onNovember 21, 2019byEric J. Nisall
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Many of my accounting & tax clients useGusto online payroll servicesand not one has ever had a bad word about it. Taking an informal survey these are the results of what they liked the most as well as my own opinions since I actually use it myself!
Its yet another part ofrunning a small business.
I mean you already have enough to do as the boss.
Even if you are the only employee, you still have to do all that.
Do you really need to add more to your already full plate?
It allows you tooutsource payroll processingto free you up to do everything else!
Every client I have that has payroll uses it in their small business.
There are plenty of reasons why, and here are the most common we all are ecstatic in our choice of small business payroll services:
Automatic Payroll Tax Deposits & Quarterly Payroll Tax Return Filing
One Fee Covers All Payroll Processing Activities
Gusto Syncs With The Best Accounting Software
These days it seems like companies want to throw everything at you at once.
Thebusiness websitehas almost become a free-for-all of information.
Theyll pack as much information as possible on each page of the site regardless of the impact on user experience.
Its almost like these companies are trying to overcompensate for something.
All it does is cause information overload andanalysis paralysisin the people using the site.
Theres nothing extraneous here, just the Things To Do and the Calendar.
Everything else is contained neatly in the left-side menu section.
It doesnt get much cleaner or simpler than theGustodashboard, does it?
How many times have you had to set up an account in a new app, program or system and were completely lost?
How often do you sit there like where do I start? and then what do I do next??
WellGustotakes the guesswork out of the account setup process.
Theres literally a numbered account setup process:
You start at task 1 which is entering your address.
Gustosimply takes the guesswork out of the setup process.
Why is this such an important feature you ask?
As a business owner, you are probably all about saving time so that itself should be enough reason to like this feature!
The other benefit is making sure everything is completed the first time because we all know that its a pain in the ass to think youre all done and ready to go only to have to stop and go back to fix things.
Didnt I just get finished saying how business owners love saving time?
Well, yeah, here is another time saverGustoprovides when it comes to running your small business payroll.
If youve processed payroll before, many times you have to call in or log into your payroll processing companys website and enter the information.
Even if its for a salaried employee, some companies require verification by continually inputting it.
Its even worse when you have someone in your office doing your payroll manually.
Trust me, when I was working in CPA firms I saw this all of the time.
Each week (or whatever the payroll schedule was) the person would sit and tabulate everything on a ledger then manually write out the checks.
Or that same person at a different company would have to call/fax in the payroll to the payroll company that would process the checks.
And that included the owners and managers who got paid the same every single period
It really got to be a huge waste of time, but you try convincing someone who had been doing it that way for 40 years to try something new & better
Thats what makes this feature so valuable to many of my clients.
All you do is set your salary and the pay periods.
Then turn on auto-pilot and boom! youre done.
Each period the payroll will be run for you without you being required to lift a finger.
Me of continually writing about saving time or you of reading my mentions of it over and over again hahaha.
The truth is its such a huge factor in small business that it bears being highlighted!
Once again, using Gusto for small business payroll saves time for busy entrepreneurs.
This time, itll potentiallysave you moneyas well!
When you do your own payroll processing you have to be responsible for sending in the taxes withheld from yourand your employees paychecks.
Real quickwhen are you supposed to send in those withheld taxes?
Whats worse is there is no one answer because your deposit period depends on your company tax liability.
Some small business payroll taxes need to be deposited by the 15th of the next month.
Others are required to make tax deposits on a specific day of the week depending on the pay day.
Still others must make the payroll tax deposit the next business day.
Not only is it yetanotherdeadline to keep track of, it can be costly if you forget.
The payroll tax returns are a little different since most of them have the same filing date.
But that doesnt mean its not easy to forget to file those as well, particularly if you are new to having payroll liabilities.
Gustotakes care of all of this hassle by doing all of these tasks for you
You never have to do anything or pay extra for the service; its part of the process for everyone.
That set it and forget it aspect is one of the things that everyone loves.
And the fact that they dont have to deal with quarterly estimates any more too hahaha.
Its not just the withholding tax deposits and the quarterly payroll tax returns that get taken care of.
Gustoalso takes care of the annual payroll tax returns including Federal Unemployment Tax, your employees W-2 and any contractor 1099-MISC forms.
Thats pretty big because if you did it yourself, youd have to spend extra time and money doing it yourself or entering the data into a separate online tax form filing program.
Lets be realno one wants to spend more time or money than they have to.
Just like the payroll tax returns, the employee tax forms are also done at no extra cost.
One other benefit is not having to worry aboutwrongly sending 1099-MISC formsto your contractors.
Its just too bad the program cant canttake the guessing game out ofwhether or not you need to send out a 1099-MISCfor everyone.
Here we go, this is where most people complain about everything:
Except, with Gusto, there is never any confusion when it comes to how much you will pay.
You always pay one monthly fee thatcovers all services.
That makes it so much easier than wondering how much youll pay based on hiring new people or wanting to switch from paper checks to direct deposit.
For small businesses, knowingexactlywhat your costs are each month makes budgeting and operating your business so much easier!
Even in todays digital age, so many things still have to be printed and signed then mailed or faxed back to the originator.
Gust embraces technology and the digital age and makes setting up your small business payroll account effortless.
You digitally sign and submit all of the account onboarding documents.
Your employees get their own onbaording package online, then digitally sign those documents.
The documents to make Gusto your agent with the state and IRS are digitally signed and submitted.
You dont have to run over to the local office supply store or call around to friends and family to find a fax machine.
You dont have to run out and waste money on a package of envelopes just to mail a few sheets of paper.
You dont have to run to the store or Post Office to buy stamps to mail back the signed documents.
You and your employees do everything at your computer and never have to leave the house.
This is something that most of my clients (or anyone else I speak to about online payroll services) dont even consider.
What happens when you do your own books inlets sayQuickBooksand you see the payroll in your bank feed?
How do you break down the different categories?
Do you even do it or stick everything in your wages account?
Which, by the way, isnt the correct way to do it
Instead, I set up aQuickBooks Onlineintegration inside ofGusto, map everything, and then set the sync to automatic.
Now, whenever anyone runs a payroll, it automatically gets sent to theirQuickBooks Onlinefile with the proper classifications broken out.
All they need to do is click match in the bank feed and boom! its recorded correctly.
When I explain it, I (almost) always get that ahhhhhhh response.
Its the little things that help make running a business easier!
Your accountant isnt also your barber/hairstylist.
The point is, you want the people and services you work with to beexpertsin those areas.
Its an online payroll service for small businesses, thats it.
Thats the problem with so many of these all-in-one solutions.
None of them are great at every service they provide.
If you go to someone who says theyre a CFP, CPA, JD, and 10 other acronyms what the hell are they actually anexpertin?
They cant possible put in enough time into each area to truly be an expert in everything, yet they have to spend enough time in all of them to maintain their licenses.
A jack of all trades, but a master of none as the saying goes.
WithGusto, you are only getting small business payroll-related services at a high level.
Thats what you should expect from a payroll company!
Like I said, at the top, I personally useGustofor my own payroll as well as having 10+ clients who require a payroll service for their own small businesses. Id recommend it for any one of the above reasons, but considering all of them together makes it a no brainer for me!
Dont take my word as gospeltry it for yourself! Plus, if you use any of the links in this article you will get one month of payroll service for free!
Have you tried any specialized payroll services for small business like Gusto? Do you do it by hand? If you think you may need small business payroll services in the future which ones have you looked into?
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