Editor of “Payroll for Dummies” Ken Darrow says employers need three things from payroll: pay employees on time, pay the payroll taxes on time, and file payroll tax forms on time. These are compliance issues that have financial and legal consequences and they’re three services to expect from top payroll companies.
What to Look for in Payroll Services
Besides the top three reasons employers hire payroll services, there are other things to look for in payroll providers when a company decides to outsource HR. Processing W-2 forms at year end, Obamacare help, direct deposit processing, payroll calculator, electronic pay stubs online, and online time tracking that makes it easy to log employee hours for fast and accurate payroll data.
The best payroll services offer web platforms and integrations for direct data feed into payroll, which eliminates double entry and prevents errors. Good payroll services don’t have a hard sell and are upfront about payroll services cost. They are clear about charging by the month or by the pay period and offer a range of services from basic to a la carte to premium services so clients only pay for the payroll services they need based on their company size and number of employees.
Some Key Considerations
Employers need to know how often they can expect payroll reports, how they are delivered, and how to communicate with the payroll service provider they are considering. Is there a dedicated account manager to contact when questions or problems come up or a call center with various representatives? Do they provide a processing schedule for the entire year to prepare for holidays? How do they resolve conflicts with their customers?
Questions to Ask Payroll Services
When evaluating top payroll companies, employers should ask questions about how they do business and how they interact with their clients. Sales agents or account managers should be open to discussing their products, services, and policies and should always conduct a thorough analysis of processes and procedures to identify key areas that they can assist with.
Some questions to ask before signing on the dotted line include:
- How long does it take to correct errors?
- If the payroll service makes a mistake, who is liable for it?
- How fast is payroll turnaround?
- Will the fees in the contract change after the first year?
- Can payroll services integrate with the company’s accounting software?
- What is the availability of customer service?
- Can the payroll service file taxes in multiple states and do they charge extra for it?
- What type of payroll software technology is used?
Contact us now to see how PAYDAY can answer all of these questions.