Questions to Consider Before Hiring a Payroll Service Provider
Outsourcing your payroll processing to a third party is not a random, small decision. You are making a big commitment here. You are trusting your payroll service provider, practically a bunch of unknown people, and giving them the power to peek into your company’s records. Things can go wrong, and you can end up disappointing your employees along with flushing hard-earned money down the drain.
So, while taking this decision and hiring a payroll provider, there are some questions that you should keep in mind. These questions can help you make an informed decision and search for the best payroll service provider. Let’s see what these questions are:
1. What Services and Support are Included in Your Offer?
There are various payroll service providers in Pune, and to choose your best fit, you should evaluate the type of services you need. You need to look into how many employees you currently have, how many employees you are planning to welcome in future, and how much power you want to give to your provider.
Generally, online payroll service providers offer services like salary and tax calculations, handling bonuses and deductions, payment of taxes, and managing other employee benefits such as health and other insurance.
2. Who is Your Dedicated Payroll Person?
Most of the businesses skip this step, and it is because we all assume that a professional and well-informed person will show up at our door. However, that is obviously not the case every time so you should meet your dedicated payroll person at least twice before hiring any provider. This is necessary to ensure that your dedicated payroll officer fits well in your system, he or she understands your industry and the challenges related to it, and most essential of all, he or she can handle sudden issues and problems.
3. Is Your Payroll Service Provider using Latest Technology?
You might want to look for a provider that uses latest tools and technologies. There are providers that still use age-old software and processes for payroll management. These are costly, hard to customize, and have limited functionalities. However, today, everybody needs additional functionalities, cost-effective solutions, ability to customize according to company needs, and ability to store huge amount of employee data. Take your time, analyze the technology, and also check if your employees can easily access the payroll system.
4. How does the Provider Manage Taxes?
Apart from payroll processing, your online payroll service provider should look after your tax management. See if they have a proper system to make sure not a single tax is left out, no deadline is missed, and all the annual, quarterly filing are processed.
5. How Secure is Your Employees’ Data with Them?
Your online payroll service provider has access to your employees’ confidential information, and to keep this information safe, they should have a security system in place. Even a single hacker and one malicious activity can compromise your company’s data.
6. Will You be Able to Integrate Your Legacy Data?
Integration is important if you want to avoid manually processing previous records. Your legacy information and existing data should be integrated into the new payroll system. Without this, your team will end up manually accessing CSV files and entering data into the payroll system.
7. What Support Services do They Offer?
Businesses need support services, especially in the starting, to understand the payroll system and access it smoothly. A dedicated support person in such a scenario will be best, but if not this, then at least your provider should have 24*7 customer service panel.
To ensure that your payroll service provider can handle and manage your organization’s requirements without creating chaos, you need to get answers to all these questions.