One of the more daunting tasks an increasing number of businesses are eager to outsource is managing the payroll service. Letting an outside payroll service provider deal with the nitty gritty details of processing payments and calculating taxes can be invaluable – if the payroll service provider chosen lives up to expectations. It is vitally important to choose wisely when payroll outsourcing, as you will be putting your company’s money and sensitive data into their hands. With that in mind, here are a few things to think of when choosing a payroll service for your business.
Determine your needs and expectations
Firstly, decide on the exact scope of services you want from your payroll service provider. Do you want them to just facilitate payments while you handle the data? Or would you like them to produce your pay slips, manage your taxes, and throw HR services into the mix? It’s possible to get all of that and more with the right provider. Secondly, decide on how you want the services to be delivered, taking into consideration the way your business operates. Do you have a non-standard pay cycle that will require a more tailored approach to running your payroll? Do you need to be able to contact your provider on holidays, weekends, 24/7? Having a clear picture of what you need to look out for will help you narrow down the choices of payroll service providers available.
Choose your payroll service
After that, make a list of payroll service providers that provides the services you need. Make sure they are accredited and insured. The software they use should be highly encrypted to ensure no sensitive and confidential business data will be easily accessed by hackers. Try asking business contacts using payroll services for advice and recommendations, as their experience would provide useful and honest insight.
Look into the pricing structure of those payroll service providers and match that with how much you are willing to pay. Keep in mind that most payrolls charge a flat monthly base fee, but there may be extra costs for services like managing your government tax compliance requirements, end of year filing or even software updates. Look out for such hidden fees so that you can avoid unpleasant surprises later down the road. Click here to get about payroll shared services.
Contact your payroll service
You should then proceed to contact the payroll service provider you are considering. Ask if they have experience in serving clients in the similar industry or with similar needs. Ask them for references so that you can speak to those clients and know more about their professional experiences with using those providers.
You’ll also need to ask a few key questions to determine your potential provider’s reliability, security and transparency. Make sure your provider thoroughly understands the legal environment within which your business is operating. If your business is in Australia, for example, it may be advisable to look to local companies like Payroll services Australia (www.payrollserviceaustralia.com.au) for your payroll outsourcing. This will help minimize the potential for mistakes like the mishandling of tax payments.
Ask the provider about your primary contact. Find out who will deal with the day-to-day management of your account and who will respond to any problems or questions which occur. You may wish for specific payroll specialists to be assigned to your account. You should also find out how and when you can contact the payroll service provider. Will you be able to contact them by your preferred mode of communication i.e. phone, email and/or face-to-face? Can you get in touch with them quickly in case of any emergencies? Customers should be able to communicate easily and consistently with their payroll managers. The payroll accounts should be easy to navigate, so that employees can access their personal payroll information in a straightforward fashion. Learn more about payroll services.
Lastly, ask about the terms and conditions of your contract. You’ll want a flexible contract which can evolve as your business evolves. You’ll want a payroll service provider which can adapt to changing demands and tailor their services to your needs. For example, can your provider easily add more users or employees to your account? What are the termination clauses and fees tied to the contract?
In short, consider all angles when selecting a good payroll service provider. It may be wise to make use of the free trials some payroll service providers offer, so you can test drive those providers for a month or so before making this important decision.