Whether you own a business and have one employee, or you consider yourself the employee as a one-man operation, you’ve found yourself wondering if you need payroll assistance.
It all comes down to whether you need payroll at all, the level of customer service you want, and how comfortable you are with doing payroll on your own. Let’s talk about it!
At CSI Accounting & Payroll, we’ve worked with small business finances for over 50 years. That means we’ve gotten a lot of questions from prospective clients about payroll for one employee, including:
- Do I need to have payroll?
- Do I need payroll software for one employee?
- Do I need a payroll company for one employee? What are the benefits of this?
Do I Need Payroll for Myself?
If you have employees, you need payroll. But what if you’re self-employed, so the only employee you have is yourself?
Sole proprietors and independent contractors don’t need payroll. This is true for two reasons; they don’t need to pay themselves, and their taxes are handled outside of payroll. The only exception is if they elect to be taxed as an S-Corporation.
Learn more about self-employed payroll here.
Do I Need Payroll Software for One Employee?
When you have just one employee besides yourself, you may want to try to do your own payroll.
Not Using Payroll Software
Doing your own payroll is possible without the use of any professional software, but we can’t recommend it.
It can be easy to forget that payroll is more than just writing checks. Often, people only do their own payroll in an attempt to save money, but it takes a lot more time and effort than it’s worth. It can also result in costly errors.
Using Payroll Software as a Service
To use payroll software, most people choose to work with a large payroll provider since you’re just leasing their software as a service.
You still set up and run your payroll, but you have a tool to help with organization and calculations, making it easier to stay in compliance. However, if not used properly, there are huge limitations with software as a service. It’s not fun to wait in a phone queue for generic guidance if you need help.
(Luckily, there’s an alternative with great customer service: small payroll services. We’ll talk about them a bit in the next section.)
Do I Need a Payroll Service for One Employee?
Is it worth it to work with a payroll company for just one employee? How many employees should you have before it makes sense to outsource?
If you aren’t completely confident in handling every aspect of payroll on your own, it makes sense to outsource – even if you just have one employee. Payroll services are very inexpensive when you think about the compliance they offer and the liability they take off of your shoulders.
However, since we already discussed large providers (software as a service), we also need to note how a small payroll service is different. That’s because it’s truly a service.
Small Payroll Services
Small providers cost nearly the same as the large providers while handling the setup for you to ensure it’s correct and providing much better customer service.
When you work with a small payroll service like CSI Accounting & Payroll, you’ll get a dedicated point of contact whom you can call, text, or email directly to resolve any issues. They can offer fast, customized advice because they’re familiar with your business and your payroll.
Learn more about the many ways that small payroll providers are different from large providers.
Get Great, Affordable Payroll Service for One Employee!
Now that you know whether or not you need to have payroll, lease payroll software from a large provider, or work with a small payroll service, are you ready to move forward with a small payroll service?
If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:
Not ready to talk? That’s okay! First, learn more about what our payroll service can help you with.
