In-house payroll processing has been proven to be a time-consuming process. Many experts recommend outsourcing payroll to free up employee time to pursue initiatives that are more important, value-added and revenue-generating. There are other reasons too such as significant savings in time and labour, elimination of errors and increased compliance with government norms.
While outsourcing is essential, it is equally important that companies select the right payroll service provider for their needs. Here are a few things to check while choosing the right partner for your company:
Experience of service provider
Never choose a newly established payroll service provider based on their discounted pricing or some other incentives that they offer. It is important to make sure that the service provider is able to handle all payments on time and completely without error. All experienced outsourcing firms will be able to demonstrate a record of accuracy and reliability, and go beyond the traditional ways of carrying out the payroll process.
Check for referrals
It makes sense to first ask your connections in similar industries for referrals. After getting a couple of suggestions carry out your due diligence. Check what their customers talk about them. Request for a list of satisfied client references from your choices. Credible companies will not hesitate to share this information with you.
Ability to customize:
Service providers must be able to customize their services according to the size of the company as well as their needs for a particular period in their growth cycle. Any provider who opts for a generic, one-size-fits-all strategy should be avoided at any cost.
Level of customer service:
Does the service provider include round-the-clock support or only on days when your company payroll is being processed? Their representatives should be skilled and dedicated to address a wide range of payroll and tax needs, and, most importantly, understands exactly what it is that you are looking for from that engagement
Adopting advanced Technology
The right service provider should be able to offer advanced online payroll software, complete website functionality. They usually have a proven track record of incorporating technological changes to make sure their services are improved even further. Requesting a demo of the provider’s payroll software is one of the best ways determine for yourself if it’s easy to use. Make sure you avoid service providers who continue to utilise obsolete technology to process their clients’ payrolls.
Value added services:
Does the company provide only payroll services or does it have any value added services? Some companies offer employee benefits and retirement plans, assistance with payroll taxes, sales tax payments, workers’ compensation, time and attendance solutions, accounting, employee hiring, screening, and retention. Growing companies typically opt for these full-service providers, since it enables them to focus more of their time and effort on growing their business.
Always check if there are any hidden costs when new employees are hired. That way you can avoid any unpleasant surprises or hidden fees. It is always best to make sure the provider’s pricing structure is clearly explained beforehand including any or additional supplemental charges and processing fees. Genuine service providers are usually willing to disclose the possibility of pricing changes in the near future.
Choosing the right payroll service partner is one of the most important decisions you can make as a business owner. Thus take a step back and ask all the right questions before selecting one that’s perfect for your company.