15760 Ventura Blvd, Suite 610 Encino, CA 91436
15760 Ventura Blvd, Suite 610 Encino, CA 91436
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

When Should You Use a Payroll Service?

Use the rule my grandfather taught me in 1964

As I review my life as a serial entrepreneur, there is no doubt that much of my entrepreneurial passion was passed down from my Poppy. As far as I know he only had one business, TW Kirk and sons, which was the 2nd largest brick contractor in St Louis. I do know that during the depression (not much call for building contractors), he made money selling neck ties door-to-door and offering bridge and poker lessons on cruise ships (the rich always have money!)

He left me with many wise sayings, but this is one I have come back to over and over during my years of starting small businesses: “Don’t ever do a job that you can’t afford to do.” He would further point out that his time was worth maybe $10 an hour in those days when labor was $1.00 an hour. There was no way he could afford to pay himself $10 an hour to do work he could get done for $1.00.  However, he went on to say that the hardest decision in starting a new business is “when to make the first hire.”

Nothing has changed half a century later. It is still tough to make that first hire and take on a payroll. However, one decision should be very, very easy. Once you have three or more employees, why would you ever spend a minute figuring out payroll matters. In fact, even if you have a competent staffer making $12.00 or so an hour or a solid bookkeeper making $20 an hour, you will be paying them way too much to figure out and process a payroll compared to what an outside firm will charge.

One thing has changed in the 40+ years I’ve been employing folks – payroll has become more and more complex. According to BusinessNewsDaily.com these are just some of the advantages of taking your payroll processing outside:

  • Cost savings: Vladimir Gendelman, founder and CEO of Company Folders,
    an online service that that creates custom folders and other print
    marketing materials, said it’s much cheaper to use a payroll service
    than to do the work himself or hire a bookkeeper to do it.
  • Saving time: Katherine Niefeld, the president and founder of blink PR, estimates she saves several hours a week by using her payroll service.
  • Focusing on core competencies: Not having to spend
    time becoming an expert on the payroll process is what attracted David
    Johnson, a partner with the online Pickleball store PickleballCentral.com, to payroll services.
  • Employee access: Greg Szymanski, human resources director for real estate development and home construction management company Geonerco Management LLC, said that with payroll services, his staff members can log into their accounts on their own when changes need to be made.
  • Mobile access: Ty McLaughlin, chief financial officer for Web-based application provider OnceLogix LLC, likes that he can log into his payroll service from anywhere.
  • Error reduction: David Sabot, president of CheapHumidors.com,
    said he likes using online payroll services because it ensures no
    manual errors occur when writing out employee checks. He said using
automated payroll service has allowed his company to navigate the
    often-complicated waters regarding payroll taxes, withholdings,
    insurance, profit-sharing and 401(k)s.


We spoke to a Maya Konviser, owner of a botique payroll service in Los Angeles, CA, Accounting, Taxes, and Payroll Partners. She pointed to the benefits of using a smaller payroll company:

“For the most part, when you turn over your payroll to a service company, you usually want to give them the data in a timely fashion and then forget about it. You are then freeing up your time and your energy for more important issues. Any payroll service provider can do that for you.

“But there will always be times when you need to speak with someone at the payroll service provider about a payroll question. It is at those times when you will be much happier with a small company like ours. You are assigned to a highly qualified payroll tax specialist who will be your permanent contact. They will know your business and your issues. As a result, you will get fast and efficient resolutions of any issue that comes up. And that extra level of service commonly costs no more than the huge companies.”

If you are currently doing your own payroll, follow my Grandpa Kirk’s advice. and give Maya a call. You can reach her at (818) 436-2775 ext 103. Or if you are using a payroll company, but are not happy with their service for any reason, Maya might have a better solution.