Outsourcing payroll an option. (Insiders Outlook).

Good news for realtors. It's getting easier to make payroll.

If you're still doing payroll yourself, you know that it's a painful process. Keeping up with all the changes in payroll regulations and withholding tables can be a full-time job. Getting it right is somewhere between a challenge and a nightmare.

Worse yet, if you make a mistake, your employees and the IRS will read you the riot act. Indeed, the Internal Revenue Service indicates that one of every three employers has been penalized for a payroll mistake, accounting for billions of dollars in fines.

When you factor in the value of your time and the prospect of penalties if you make a mistake, processing payroll internally can be very expensive. Have you been thinking that your time might be better spent on other activities? Are you in need of some aspirin for your payroll headaches? If so, it may be time to take a look at outsourcing. The offerings today are better than ever.

Just as your business continues to evolve, so too have the nation's payroll services. New outsourced payroll solutions on the market can save time and money. More importantly, 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. Business owners inconveniently had to jump out of important meetings to call in payroll. 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 the simple needs of 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.

Who else has jumped on the Internet bandwagon? In addition to SurePayroll, other leading payroll providers such as ADP, Paychex, Ceridian and Wells Fargo have been rolling out new Web-based services. 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.

Make sure your payroll service can address your unique needs. 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 up front. Occasionally, additional charges will add up to make what initially seemed to be a good price not so attractive after all.

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. Visit www.surepayroll.com for more information or call (877) 954-SURE.

ADP. ADP offers a full range of benefits, payroll and business management services. Visit www.adp.com for more information.

Paychex. Paychex is a national provider of payroll, human resource and benefits solutions to small business. Visit www.paychex.com for more information.

Ceridian. Ceridian is a large national payroll processor. Ceridian recently introduced a Web-based payroll solution, PowerPay. Visit www.ceridian.com for more information.

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. Visit www.wellsfargo.com/biz for more information.