When choosing a payroll service for your business, you'll almost always encounter ADP, the largest provider of payroll services in the country. How can you compare ADP payroll services to other providers? Here are some tips.

ADP payroll services are a "safe" choice: they offer a wide range of services and have proven their dependability through years of successful payroll management. You owe it to your business to look a little deeper than the obvious choice, though.

The best approach is to evaluate at least three or four different payroll providers. You may find that other providers can offer the same features as ADP payroll services at a lower cost – or you may find that a competitor offers features you can't get through ADP.

Here are some of the main payroll processing features you should look for:

Payroll processing
The basics include simple management tools, excellent reporting, and a choice of methods to input your payroll data. ADP payroll services and many others offer a choice of phone, fax, direct internet connection, or secure web site to transfer your payroll data.

Direct deposit
Qualified payroll providers should handle all of your funds transfers electronically: direct deductions from your corporate bank account to cover the payroll, direct deposits into employee's accounts if they choose them. They should also have dependable paper check and stub delivery.

Reliable tax handling
One of the main reasons many small businesses outsource their payroll processing is to offload the burden of keeping up with changing tax requirements. Look for a payroll service that understand local, state, and Federal tax issues, and can handle all the associated calculations and deposits.

Additional features you may want to look for include:

• HR management tools
• Time and attendance solutions
• W2 and 1099 processing
• Retirement plan management

Comparing ADP payroll services and other providers
Once you've made sure that the payroll providers you're considering offer all the right features, you'll need to look more carefully at their strengths and costs.

Make sure the company you choose is a good match. ADP payroll services are excellent for large companies, but some small companies feel like they don't get enough personal attention. When you speak with representatives from the companies you're evaluating, ask questions like these:

• How many other companies my size do you deal with?
• How long does your average customer stay on your service?
• What hours are you available if I have questions?
• Do you provide any guarantees of accuracy or response times?
• Do you offer on-site or online training to help us get started?
• Will I have a dedicated account manager for questions?

Finally, make sure you get written estimates of your total costs. Pricing for payroll services is usually based on a combination of small per-check fees (delivery, printing) plus fixed costs for add-on services. Compare the total costs for each provider to decide if ADP payroll services are the right choice for your business.

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