How to Choose a Payroll Provider for Your Business
March 18, 2014
If you have decided that outsourcing your payroll will be a good choice for your business, you may be wondering how to find a company that is right for you. Below are some tips to help you get started in your search.
- Don’t necessarily seek out the larger payroll companies simply because of name recognition. These organizations may bundle services into their packages that you simply do not need, resulting in a higher monthly charge. The best way to search for payroll companies is by obtaining references from other businesses in the area which are similar to yours.
- Make a list of everything you will need from a payroll company in advance. For example, think about how frequently you want paychecks distributed and if you want them to handle employee benefit deductions such as 401(k)s. You should also consider if you want your payroll company to file taxes on your behalf, as not all companies do so.
- Be sure you have a clear understanding of the payroll company’s pricing system. Some charge by the month, while other charge per pay period.
- Be sure to compare the pricing and services of several companies so you can feel certain you are not being overcharged for services you consider to be must-haves. Also inquire how frequently your fees may increase.
- It is a huge bonus if the payroll company can integrate with your existing payroll software, both for a seamless transition and for your continued ability to access payroll data quickly. If your preferred company cannot integrate with your software, ask for specific plans regarding the transfer or data, as well as how often you can expect to receive reports from the company.
Ask about the hours and methods of reaching the payroll company’s customer service. It is a good idea to test the customer service by calling with questions at various times when they should be available.