Payroll service for local small businesses

Small business owners with a handful of employees who want payroll off their plate, plus startups that have just made their first hire.

A monthly base fee plus a per-employee fee per pay run. Extras like new-hire setup, year-end W-2 and 1099 filing, and catch-up cleanups can be billed separately.

• Careful with numbers and deadlines
• Understanding payroll taxes and withholding
• Clear communication with business owners
• Keeping client data private

• Payroll tax mistakes can lead to penalties, so check who is responsible for deposits and filings and put it in your contract
• Check whether you need authorization forms (such as IRS power of attorney or state tax agency forms) to act for clients
• Consider professional liability (errors and omissions) and general liability insurance
• Protect sensitive data such as Social Security numbers, with strong passwords and secure software
• State and local payroll rules, such as paid sick leave and unemployment insurance, vary, so check each client's state

Startup costs are typically estimated at around $300 to $1,500, depending on the payroll software and insurance you choose. Because you work from home, setup is mostly about your tools and getting your first clients.

Check whether you need authorization forms, such as IRS power of attorney or state tax agency forms, to act for clients. Also check who is responsible for deposits and filings, put it in your contract, and review state and local payroll rules.

Monthly revenue is typically estimated at around $600 to $3,000, depending on how many clients you take on and what you charge. Many people start with a minimum of roughly 8 hours a week.