Processing your payroll in-house can be incredibly time-consuming. It also takes away from the time your company could spend on things that actually make money. If you want to free up your most important resources for operations that generate revenue, you may want to consider payroll outsourcing. Doing that requires taking the time to find a trustworthy and dependable payroll processing company that will provide the services your business needs. All at a price that makes sense. We’ll walk you through how to choose a payroll service so you can know the important questions to ask as you decide to interview providers.
How to choose a payroll service
The payroll company you decide to outsource to should be able to process payroll securely and efficiently, freeing up resources for your company to use elsewhere. Their service should also help you to avoid major processing problems and security issues, both of which can hurt both your company and your employees. Great payroll companies allow businesses a unique chance to ensure that their payroll is processed on-time without committing significant company resources to the payroll process. Below are the steps you can take to find the ideal payroll processing company.
Where to look
The first step of how to choose a payroll service starts with your initial survey of the available companies. As you might observe from a simple internet search, there is no shortage of payroll companies out there today. Instead of just going with a random company from a list, you’ll want to make sure that you search intentionally. This will save you time from having to sift through all of the companies out there.
The best place to start is by looking at other businesses in your industry. Who do they use for their payroll? Perhaps even more importantly, who do they avoid? What companies have a great reputation and which companies tend to charge too much for services that you don’t need? Start talking to people who have worked with the companies on your initial list and don’t be afraid to look at internet reviews as an extra point of reference.
Services and pricing
If you’re going to outsource your payroll, the next step of how to choose a payroll service is figuring out how using that service will impact your bottom line. As such, you’ll want to start by figuring out what services you’re actually purchasing and what the pricing will be for each. While there’s no agreed-upon “right” price for payroll help, you’ll want to make sure that you aren’t paying too much more than the industry average. More importantly, though, you’ll want to know that you’re paying for what you need.
Take a look at the services offered by the other company and determine if they make sense for you. Try to ensure that you only pay for what you need rather than a bundle of extra services that bring you no added value. The more work you put into figuring out the pricing structure, the better you’ll be able to tailor your payroll experience.
Question to ask
You should always be willing to ask questions of a payroll company. Asking about what makes their payroll process different than your own, for example, will let you figure out why working with that company might be beneficial. Asking about costs, on the other hand, will ensure that you’ll know whether making a deal with that company makes any type of financial sense.
You’ll also want to start laying the groundwork for the business relationship through these questions. Asking who is responsible for which aspects of payroll (who handles distribution, printing the checks, etc) will allow you to know what your responsibilities might be. The way that the other party answers the questions should even give you an idea of how well you can work with that company.
Test them out
You would never enter into any other business partnership without doing a little hands-on research, so don’t expect to go into business with a payroll company sight unseen. You’ll want to check out what it’s like to be the company’s client to the best of your ability. At a very basic level, this means reading reviews and checking in with other companies who have worked with the payroll processor in the past.
It’s also a good idea to check out the customer service capacities of the company early on. Figure out how easy it is to get in contact with the company through each of its communications channels. You should know if you can depend on that company before you ever sign a contract.
What’s required of you
You will also need to know what the payroll company is going to require from you. Figure out what type of records you’ll need to keep, including the formats in which those records must be stored. Determine if working with the payroll company will require you to add new security measures or if you’re going to have to update any of your current measures. You’ll also want to stop and figure out what you’ll need to do on your end to ensure that your payroll goes out on time.
It’s also a good idea to make sure that you are able to frequently check in with the payroll company during the first few months of your partnership. This is great not only for your peace of mind but also for ensuring that everything is running smoothly. Knowing what you’ll be required to do and how you’ll be able to adapt to the relationship is a vital part of choosing the right processor.
Are you ready to find a new payroll service provider?
Once you figure out how to choose a payroll service, it’s vital that you choose the service that can best serve your needs. PayTech is one of the leaders in the industry, offering services ranging from basic payroll process to outsourcing a business’ human resources department. If you’re ready to make a change in how your business processes its payroll, it’s time to make the right decision. Check out PayTech’s pricing and packages to determine how we can meet the needs of both your business and your budget.