Effectively Vetting Payroll Companies
How To Successfully Vet Reputable Payroll Companies
Payroll companies. At some point, most business owners consider using these third party providers to automate their payroll functionality. Minimizing manual errors, keeping your organization compliant, and assisting with benefit deductions are just some of the many advantages that payroll companies can deliver to your business.
Carefully Screen Payroll Companies Before Making Your Selection
Despite offering numerous advantages, many entrepreneurs still have not hired payroll companies to manage their internal functions. Why? They simply do not know how to find a quality provider capable of handling their specific corporate requirements.
If you want to reap the optimal benefits delivered by payroll companies, you need to carefully vet prospective partners to ensure they offer what you need for success. Some important things to determine during the screening process include:
Specific Payroll Services
The first thing to determine when vetting payroll companies is the specific services that they provide. Every vendor will have its own unique list of offerings. Knowing up front what your vendor offers will help you quickly determine if they have what you need in a partnership. Look for a team that offers a comprehensive portfolio of services including paying employees, new employee reports, paid time off, benefit deductions, 401k contributions, flex spending and even bonuses to ensure all of your requirements are covered. A comprehensive service provider means that as your company grows, your payroll service can grow with you.
As with any new resource, pricing will play a key role in your final decision. Ask how each vendor structures their pricing requirements. Is it a monthly charge? Are there added fees based on each employee? What other additionally costs can accrue?
A reputable provider will offer a seamless, convenient setup process to minimize disruption. Ask about the setup process and how quickly you can access the dashboard. Part of the setup process should also include staff training designed to get your team comfortable with their new system as quickly as possible. Additionally, also ask if your users can connect with the system remotely using laptops and/or mobile devices.
Innovative payroll companies will not just manage employee payments and benefits, they will also coordinate tax compliance for your organization. When choosing your final provider, inquire about federal and state tax requirements as well as unemployment mandates.
Payroll companies store some of your organization’s most confidential information. Security is of paramount importance; discuss at length the process your provider uses to keep your private information private and out of the hands of hackers. Knowing where their data center is, as well as their security process can help give you peace of mind.
Finally, when vetting your vendor, take the time to learn about their customer support commitment. You and your employees will often have questions about the payroll/benefit/deduction process. Having an easy-to-access team of specialists available to field inquiries means you will get the answers you need quickly.