USA Outsourcing Payroll

[rroessel]

I think I already know the answer to this, but I'm going to ask anyway (multiple opinions are always good)...

The company I'll be working for plans on starting paying its employees (so far just myself and the owner), when the doors to the business open in January 2013. The company is outsourcing payroll services to another company. Since no payroll activity will take place until then, is there a point in contracting with the company before January? It doesn't make sense to me to incur the expense when we don't need the service for a few more months.

 

[kirby]

Even though you have a contract, doesn't mean you will also start incurring huge costs each month before January. Typically, payroll services charge by the payroll work performed. So if you are paying no one, then no or minimal charge. And as someone will need to have the service active PRIOR to January ( to set up employee names. SS#, withholdings, etc, data) it makes sense to have a contract now and not last minute before first payroll.