Have you been thinking your time might be better spent on other activities? If so, it may be time to take a look at outsourcing. The offerings today are better than ever.

WHAT'S NEW IN OUTSOURCED PAYROLL?

New, outsourced payroll solutions on the market can save time and money. More important, they let you stay in control throughout the process.

Historically, outsourcing payroll meant you needed to call in payroll on a predetermined day and time. Some payroll providers offered software solutions, allowing data to be entered locally and sent in via modem. While this represented a step forward in terms of convenience and control, the software was too complex, designed to handle the payroll needs of large corporations like IBM rather than small businesses.

The new breed of outsourced payroll services overcomes these deficiencies by offering simple Web-based interfaces. With Chicago-based SurePayroll's offering, for example, all you need is a Web browser and an Internet connection. Once you enter your payroll data, SurePayroll automatically calculates, deducts, pays and files all taxes. You decide when and where you want to process payroll.

And there's an added bonus. Since you enter the data yourself and view the results in real time, you don't have to worry about a data entry clerk making errors when you give him the information on the phone.

SurePayroll isn't riding the Internet bandwagon alone. Other leading payroll providers such as ADP, Paychex, Ceridian and Wells Fargo have been rolling out new Web-based services.

SERVICES PROVIDED

So what exactly does a payroll provider do for you? Payroll services calculate payroll and withholding obligations. They process the checks or provide direct deposits into your employees' accounts. They take care of all the government filings with federal, state and local tax-collection agencies and issue W-2s for you. They also will provide you with management reports that let you track and monitor your payroll.

Once you've determined that outsourcing payroll is an attractive alternative to in-house processing, the trick is to choose the payroll service that's right for you.

First and foremost, make sure you like the way you'll be processing payroll. If you're frequently on the road or like to do payroll whenever you choose, you may want to choose a provider that offers a Web-based service. If you prefer to give your information to a customer service rep, choose a provider that offers a call-in service.

Most services will handle your basic needs--for example, if you have to pay payroll taxes for multiple states. But if you have complex needs, you may have to go with a larger provider like ADP. Be sure to understand all the costs upfront. Occasionally, additional charges will add up to spoil what initially seemed a good price.

If you choose the right provider, you'll be happy and your payroll provider will be happy. If you try to put a square peg into a round hole, you'll find neither you nor the payroll provider will be happy. Take the time to talk to providers and make sure the offering works for you.

CONTACT INFORMATION FOR PAYROLL PROVIDERS

• SurePayroll. SurePayroll uses a Web-based plan to offer small businesses lower-cost service. A flat fee includes payroll processing, all tax filing and payment, quarterly reports and more. (www.surepayroll.com)
  
  
• ADP. ADP offers a full range of benefits, payroll and business management services. (www.adp.com)
  
  
• Paychex. Paychex is a national provider of payroll, human resource and benefits solutions to small business. (www.paychex.com)
  
  
• Ceridian. Ceridian is a large national payroll processor. Ceridian recently introduced a Web-based payroll solution, PowerPay. (www.ceridian.com)
  
  
• Wells Fargo. Wells Fargo has been offering payroll services to small companies for 40 years. Their OnlinePayroll offering is for businesses that want to run payroll online. (www.wellsfargo.com/biz)