If you are reading this blog, then that means you are tired of slogging through the repetitive task involved in payroll and are perhaps considering hiring a professional payroll services provider. Hiring a vendor can help you reduce costs, lower mistakes and focus more on expanding your business.
But before you invest in any solution provider, you need to consider a few things that can maximize your return on investment. In this blog, we have identified the top 10 points to remember before you take that leap of faith.
Before we begin, let us understand the basics of payroll services and what payroll process outsourcing actually means.
What is Payroll?
A lot of people understand payroll to be paying out salaries to employees. While that is one aspect of it, payroll is a lot more than that.
It can have a few different meanings, such as:
- Paying employees and storing their personal information.
- Overseeing time and attendance of employees
- Providing electronic payslips to both employees and employers
- Calculating taxes for the company and the individual
What Does Payroll Service Include?
Payroll services you get depends upon the company you choose. A basic payroll service will include calculating wages and using that information to process net monthly pay as well as collecting employees’ office hours.
On the other hand, payroll services can also include comprehensive solutions such as handling of an organisation’s retirement accounts and benefits programs as well as taking care of statutory compliance. They also provide toll-free numbers for any queries related to human resources or payroll.
What is Payroll Process Outsourcing?
When an organization hires payroll services to handle its payroll-related functions, then it is generally known as outsourcing its payroll process. Most business focusing on growth strategy generally outsource this operational yet mandatory process. Managing payroll is the last thing they want to consider when chasing an aggressive growth plan.
Benefits of Outsourcing Payroll
The top three benefits of outsourcing payroll services are:
- Manage accurate taxing - hiring a dedicated and professional payroll services helps you with accurate and timely taxing.
- Comply with statutory laws - payroll services are up-to-date with statutory requirements and ensure their clients fully comply with them.
- Keep detailed, accurate records of employee and employer data - payroll services are professionals with the expertise to handle a large volume of data in a more effective way.
Here are our top 10 questions to ask when considering the right payroll services for your organization.
1. Identify Your Business’ Payroll Needs
Most companies often invest in payroll services without knowing how to utilize them effectively. Therefore, it is important to first understand your needs before outsourcing your payroll operations.
A comprehensive payroll services provider is expected to offer the following:
- pay hourly to contractual employees
- track paid time off
- manage new employee reporting
- file taxes accurately
- manage earnings and deductions like bonuses, reimbursements, etc.
2. Know Your Budget
While you may want to have a lot of services from your vendor, remember that these come at a cost. Review your budget and look for the most suitable payroll services.
But do not make your budget the only factor while choosing a vendor. While working on razor-thin budgets can affect your decision, you can always work with the payroll services to offer customized solutions according to your budget and needs.
3. The On-boarding Process of Payroll Services
This is an important thing to consider as it allows you to figure out how to get dashboards containing vital information. Think of it this way - Once you sign up with payroll services, the vendor should immediately give you and your employees access to their dashboards, configure basic information, etc. On-boarding with a payroll service should be swift and without any hassle.
4. Can Your Payroll Services Handle Taxes Accurately?
Your payroll services provider should be able to manage your payroll tax compliance and other deductions accurately. The provider should also be able to process year-end taxes and the company’s returns efficiently. Avoid vendors who charge extra for doing taxes and returns. Make sure to ask these questions while prospecting different payroll services.
5. Data Security and Protection Methods
Data privacy should be a key consideration when looking for payroll services. You should be confident that your private accounting data in the cloud is safe from hackers.
Make sure to verify that your provider has a proven track record of keeping data safe with the highest encryption standards. Usually, modern payroll services use the same technology used by banks to keep their data safe. Cross-check with your vendor to see if their data is protected by firewalls and a two-factor authentication.
6. Location of Data Centre and Its Accessibility
It's also very critical to know the location of the data centres of the potential payroll services provider. These data centres will protect your organization’s private financial data.
It is important to understand how the provider can safeguard it during natural disasters and break-ins. Look for a payroll service provider that has several layers of security, such as biometric scanning, retinal scan and PIN number restrictions.
7. Level of Customer Support
Your payroll services should have 24X7 support via email, phone, and chat. This should be further complemented with an intensive FAQs and self-help material.
Having support is great, but calling that support frequently can also mean that the product is either too complicated to understand or has several glitches.
8. Can Employees and Contractor Access Their Payroll Information?
As basic it may sound, this is a must-have feature without any exception. Online payroll service providers usually provide personal portals to employees and contractors to access all their pay and tax-related information.
9. Integration Between Your Systems and the Payroll Services System
Check for integration of the accounting system with yours. Once you’ve integrated both the systems, you’ll be able to directly connect your existing accounting software from your service provider’s dashboard.
10. Scalability of Payroll Services
As your business grows, your payroll services provider should be able to match your needs. It should be able to handle additional users and employees’ account. To check the scalability of the vendor, ask which services can be added later and at what cost.
Keeping all this mind, the payroll services offered by PaySquare is your best bet! Log in to their website to know more.