Recently I posted a blog about three different types of payroll service – Today we are going to go a bit further with this and go over some things that you can do to help you with choosing the right the right one for your company.
9 Things to Consider When Choosing a Payroll Service
Features Available in the Payroll Service
Besides processing payroll and handling tax obligations, it’s important to consider if the service will offer multiple options for payment, such as prepaid cards, direct deposit, and paper checks. It’s also a good idea to see if it will offer garnishment payments, PTO management, unemployment insurance, various wage rates and payroll reports that are detailed.
How User Friendly It Is
When you are looking for a payroll service, you want to choose eon that’s easy to understand. The interface should be simple to use that lets you add new employees and run payroll quickly.
The Payroll Service Cost
Of course, you want to find one that is affordable. Along with the cost, you’ll need to figure out if it requires a contract. A lot of services operate month by month without a long-term contract, and others will require an annual commitment. You also want to decide if you’re going to pay monthly, or each pay period. Based on how often you’re going to run payroll, your chosen pricing structure might cost a lot.
The Service’s Reputation
You want to choose a provider with good reviews online and a great track record. You are going to feel a lot more secure knowing you’re choosing a company that’s dealt with any issues with payroll that you may find yourself facing.
Possible Integrations the Payroll Service Offers
Whether these are built-in integrations, or they’re created by way of open API, you’ll want a service that will sync with any programs you’re already using, such as the accounting software and the attendance and time systems.
Levels of Support
You want to find a service that will give you help when it’s needed. Ask if you’re going to have a support representative that’s dedicated to you and your contact for when there’s a problem.
Since they are cloud based, you are going to be at the payroll provider’s mercy to make sure the system’s running. When you are looking for your payroll service, ask how many outages the service ahs and the frequency it’s down due to maintenance.
Is It Self-Service for Employees?
The service should let your employees log in by themselves so they can see their pay stubs and the tax forms at the end of the year.
Some of the payroll providers offer a variety of other services, such as benefits, administration for retirement plans and human resources, which can be added to the plan.
Now that we know of some things to consider when you are choosing a payroll service, here are some questions that you can ask.
5 Questions to Ask a Potential Payroll Service?
How Often Do They Update Tax Tables?
New tax laws are passing all the time, so you want to make sure that the service is updated to be in compliance. Ideally, the provider is going to update them whenever there’s a new bill that goes into effect.
Does They Have Some Other Clients in the Same Industry?
Ask the potential provider if they are serving clients who are in an industry the same as yours or similar. If this is the case, this might be a good one for you to choose, because you want to choose one that has experience with your kind of business. That being said, you shouldn’t disregard a business simply because they don’t have experience that is industry specific.
Can It Integrate with Employee Benefits?
This was mentioned above, but it bares repeating. You want to choose a service that’s able to integrate the benefits of employees, like PTO, into the workflow and software.
Can It Handle Your Company as it Grows?
If your company grows and you add more employees, will the provider be able to handle the growth? Share any expectations with the payroll provider so that you can learn the way it’s going to account for business growth.
How Does the Payroll Service Keep Your Data Secure?
The payroll data of your company has all of the personal information of employees, your business, and business bank account access. It’s important that the service is providing the highest level of security for protecting this data from any potential breeches.
These are some of the things that you want to look at when you are considering a payroll service. At Ready Business Systems, we use Gusto and have found it to be very useful. Sign up for a free trial through our link and get an Amazon gift card.