Three Questions to Ask Your Payroll Service How to evaluate whether your payroll service is working for your business.

Scott Bloom was tired of hearing the complaints. The payroll service he hired to handle payroll needs for his businesses performed well in the beginning. But suddenly the outfit was missing payroll checks and sending incorrect reports.

"They never submitted a wrong return to the IRS or state, but a couple of times I had to write checks out of the business account to get employees their paychecks on time," says Bloom, who owns Bloom Real Estate Group and is a principal of Powerhouse Business Brokers, both based in New York.

"Payroll is such an important piece [of your business], with critical penalties if it's not handled correctly, so you need to be sure you're working with a skilled provider," says Steven J. Elliott, tax director at Schwartz & Co., an accounting firm in Bellmore, N.Y.