Here are some of the most important things to consider in making your decision:

• Know What Your Needs Are. In order to know which provider offers the best service plan for your company's needs, you must first know what those needs are.  If you're not sure, you may want to talk with more than one provider to consult on what they would offer a company your size and compare notes.   
• Basic Services. Most payroll providers offer basic services such as processing and distributing paychecks, calculating state and federal employment taxes, filing payroll-related tax reports, managing employee paperwork and direct deposits, and overseeing pension and health plans. See which provider offers the best range of options.  
• Cost. The amount you spend on payroll will depend on the size of your business and how complex your business needs are.  Most providers have set fees per payroll period. Check with a few different companies and compare rates.  
• Services Included In Cost. Some payroll companies may list a broad range of services, but depending on the plan you use, some of those services may or may not be included in the quoted price. Make sure you know what is included in your particular plan and also who pays for incidentals such as postage for checks.  
• Processing Time. You need a provider that can keep up with your pay schedule, so it is important to find out how many days they will need to process checks and how far in advance you will need to provide payroll information.  
• Plan Flexibility. Inevitably, changes will have to be made from time to time with payroll. You need to find out how this is handled with your service provider and if any additional fees will be accessed.  
• Responsibility For Filing Errors.  Make sure that you know who will be responsible for any filing errors made.  Payroll service providers should accept the responsibility if the error is made on their part.  Get it in writing.  
• Future Needs.   If you plan on company expansion and will need additional services later on, make sure the provider you choose carries those particular services.  For instance, when you're still small, you may not be able to offer 401K plans or direct deposit, but as you grow these things can be added on.  
• Credentials.  Before signing on, ask for references from the provider to see if others have been pleased with their service.  Also, when dealing with money matters, it is always good to check with the Better Business Bureau to make sure companies have not been reported for any fraudulent activities.

Once you've weighed these options, you will be able to make the best choice regarding payroll for your company.