Home > Business Planning > Payroll Companies Provide Services for outsourcing-Cabinet Business

Payroll Companies Provide Services for outsourcing-Cabinet Business

Starting my cabinet company, I was exempt from compensation insurance. My small business consisted of me and the wife. Soon I was in need of using payroll services to pay workers. Companies sign-up employees with agencies designed for outsourcing funds that are due in exchange for labor. There are many benefits to using this type of system for compensating people who are dedicated to your corporation’s vision. We did and it worked great.


The advantages of using a service like this for compensating people on the company team are worth reviewing. The following list will breakdown some of the reasons that I chose to use an outside company for processing the cabinet shop payroll.

How does this arrangement work?
Basically the business that you choose will charge a percentage on the amount that you desire to pay your employee for their services. If your employee is earning a rate of $10 per hour and the percentage is 35%, for a forty hour week the calculation would be $400 x 1.35= $540 due. When the paycheck delivery arrives, it is in the workers name and has already had all of his or hers applicable taxes withdrawn from the $400 amount.

Benefits of outsourcing labor payments

1) Delivery-By choosing a local business to handle writing all of the checks, it is possible to have them delivered to your cabinet shop on payday.
2) Bookkeeping-There really is no bookkeeping other than writing the amount of the check that was submitted into the financial register.
3) Taxes-All are withdrawn from the paycheck and the necessary payments are handled by the small business payroll services company. At the end of the year the employee receives his W-2 from them as well.
4) Workers Compensation-This insurance coverage is included in the terms of the program. If anything happens, he or she is covered. This benefit is huge because it is extremely costly for a small cabinet manufacture to carry this type of coverage.
5) Fast Service-The Payroll company that I worked with in Sarasota Florida required that the hours worked be called in by 10am on Wednesday morning. A check was then delivered by 12 noon on Friday. There was one weeks pay withheld.

How to Register With a Small Business Payroll Service

The only thing I had to do was send the workers down to the companies’ headquarters so that they could register to be a part of the payroll service. My cabinet shop was required to provide banking account information and the federal identification number of the corporation and a copy of the active business license. The entire process was as painless as writing one check that was recorded in the register from a carbon copy system.

When a small cabinet shop is just starting out and eventually grows to the point of having people working within the company, this way of issuing the paychecks makes working for the company desirable. It will allow the little manufacture to be as appealing to the employee as some of the larger cabinet production facilities in the area that have benefits.

Getting a new kitchen manufacturing or installation company off the ground is difficult. If you’re going to run your business in an upright and respectable manner, registering with a payroll service is a hassle free way to go. My cabinet companies’ workers never had any complaints because the service that was provided for delivering the paychecks on time was outstanding. Check in your area for payroll services(or, “pools”) that you may be able to use. Nothing ventured-nothing gained!

Categories: Business Planning
  1. No comments yet.
  1. No trackbacks yet.

*