Payroll Concerns for CPAs and Their Small Business Clients

What is the first thing that comes to mind when you think of payroll processing?  Chances are a number of issues pop into your head, and several of those topics are significant concerns for a CPA when considering the benefits and risks of referring a small business client to work with a payroll service bureau.  Let's explore the main concerns we have discovered from the perspective of the bookkeeping and accounting community. 

Concern #1:  Tax Liability and Compliance

Most of my clients see a letter from the IRS and before even looking at the form, they anxiously send it to my desk for review.  The point is they are not the experts, nor do they want to be.

They are likely very good at what they do and need to surround themselves with expertise for mission-critical tasks and strategy.  Your payroll partner should exhibit that expertise and a willingness to help solve next-level problems when a client lacks the experience to do it themselves.  Does your payroll partner have a third party processing their taxes?  

You might be surprised by the answer.  Ideally, your payroll partner has control of making deposits, filing returns, and handling amendments.  Not only is control of this function critical to ensure accuracy, but timeliness as well.  Lastly, when a mistake does occur, does your payroll service partner assume responsibility for that error?  A good partner will not only accept responsibility for their mistakes, but also communicate with the client about the timing and resolution of the correction.

Concern #2:  Responsiveness

This seems like an obvious one, but one that many people tend to sacrifice with large payroll processors or online companies.  

When one of your clients reaches out to someone at their payroll company, do they get a live person?  Are they able to discuss their issue with someone who can handle their request, or do they get a chat bot?  Does your client have to speak to three different departments across two weeks to solve a simple tax issue?  Understandably, not everyone at an organization is a subject expert and therefore the situation may call for another level of expertise.  When that happens, how long does it take to get someone to respond?  It’s not just the speed of the response, though.  

What separates the good from the great payroll services is the genuine concern for addressing the solution to the problem rather than a temporary fix. A great payroll company will ensure all team members understand the importance of establishing and maintaining a personal relationship with each client and respond accordingly. 

Concern #3:  Accessibility

As you know, the ability for a CPA to access a client’s information at exactly the right time reduces the delays caused from stopping and starting financial analysis, bookkeeping and corporate tax returns.  

If you have a relationship with your clients’ payroll company and are authorized to request documentation, you should have the flexibility to access that information at your fingertips.  Have you ever had to rely on a client to send a payroll tax return to you in a timely manner?  Some of my clients are extremely organized and some . . . well, organization is not necessarily their strong suit.  Having secure online access to reporting and tax returns will ensure you have the information you need in a timely manner and with minimized risk for unauthorized access.  Do you have secure access to your clients’ payroll returns and reports when you need it?

Does anything else come to mind when you consider concerns for your small business clients?  We can discuss any other issues that keep you up at night.  As a proud partner of the CPA community and the best small business payroll provider available, Red River Payroll would love to be a resource for you and your clients when the opportunity presents itself. 

To learn more about Red River Payroll, visit their website.