Employee payroll involves more than cutting a check and jotting down notes in your financial reports. Federal law requires you to track 20 different types of records for each of your employees.
Is it any wonder that 40% of businesses around the world outsource some or all of their payroll needs?
If your business is growing, you’ll likely benefit from an outsourced payroll service. Here are four tips to help you select payroll service providers in your area.
1. Know Which Payroll Service Options You Need
When you sign up for payroll outsourcing, you can get a lot more than just pay slips. Depending on the provider, you may also be able to get:
- Salary and tax calculations
- Bonuses and deductions
- Tax preparation and filing
- Worker’s compensation
- Regulatory compliance
- Unemployment filing
- Other benefits (i.e., health insurance)
Often, you can bundle one or more of these services together to enjoy savings across the board. The options you’ll need depend on the size of your company, the number of employees, and the amount of time you’re currently spending in the back office.
2. Start Reading Online Reviews
As you browse select payroll service providers, see what their current customers have to say. Look for a review or testimonial page on their website. Then cross-check those reviews on third-party sites like Facebook or Google.
Do their customers feel that they’re getting good value for their money? Is the payroll provider trustworthy, dependable, and professional? Have they had any issues since they started working with them, or are they satisfied with the provider’s services?
3. Set a Payroll Service Budget
Obviously, the amount you’ll pay for payroll services depends on the number of options you sign up for. Before you start shopping around, take a look at your business budget so you know how much you can dedicate to outsourcing payroll.
Pro tip: Keep in mind that not all gains are financial. It might be worth paying a bit more so you can spend more time focusing on your business (and less time on basic HR tasks).
As you compare options, ask about the difference between an annual contract or paying month-to-month. One may be a better fit for your budget, or you may want to “test out” the provider’s services before committing to a long-term agreement.
4. Ask About the Latest Payroll Technology & Security
The latest payroll technology enables you and your employees to log in and view records with just a few clicks. Make sure that the provider you’re considering uses up-to-date software that maximizes functionality.
Also, ask specific questions about how the provider keeps your data secure. They’ll have access to your company’s most sensitive information, including vital records for your employees and financial documents. What does the provider do to protect this information from hackers and cyberattacks?
Select Payroll Service Providers for Your Business
It’s easy to feel overwhelmed when you try to select payroll service providers. As you evaluate different payroll service options, use the tips above to guide you in your search.
The latest payroll technology isn’t the only topic of discussion on the table today. Keep browsing our site for other helpful articles about business, finance, and much more!