Look for a stable provider

If a firm's only business is payroll, make sure to check the number of clients it supports. To ensure stability, a payroll service should ideally maintain at least several hundred clients.

Double-check the math when switching

Transitioning to a new payroll firm rarely occurs without glitches. Be especially thorough in reviewing the first paychecks issued through the service as well as the money paid to cover tax obligations.

Watch prices over time

Do not be swayed by services that waive charges upon sign-up. Often rates go up or charges start accruing after six months to a year of service.

Be wary of low fees

Watch out for providers that offer low base processing rates with expensive add-on features. Your total fees paid may wind up being more costly than those of a provider with slightly higher fees