What Business Owners Should Know About Third-Party Payroll Services

Many business owners use third-party companies to handle their payroll, such as Gusto, ADP, and Paychex. These services can be a helpful tool for busy small-business owners and larger companies alike, but do third-party payroll and HR services provide a false sense of security?

The benefits of third-party payroll services

Payroll services can benefit your business by streamlining paid time off (PTO) requests, easily tracking employee hours, staying up to date on tax regulations, and offering direct deposit for employees.

If your payroll service makes a mistake, you might be liable

According to board-certified employment attorney Cathleen Scott, third-party payroll companies don’t always pay employees correctly — and if they make a mistake, those employees can take legal action against your business. For example, if an employee doesn’t get paid properly for their overtime hours, they can bring wage and hour claims against the employer, not just the payroll service.

Have an expert review your records

Is your business compliant with all wage and hour laws? The best way to ensure that you’re paying your employees correctly is to have an expert review your records and pay practices. Contact Scott Law Team today, and one of our experienced labor and employment attorneys will do a complete audit of your employee records and payroll.