If you’re like most business owners, you spend about 5 hours every pay period processing payroll. That adds up to 21 days a year, just on payroll.
You know that you have a lot more important things to do, like business development and managing the company. It makes a lot more sense to outsource payroll to another company.
Choosing outsourcing payroll providers is a challenge. There are plenty of payroll provider options, but how can you select the best provider?
This article has you covered. Keep reading this guide to discover five tips to choose the perfect payroll provider for your business.
Payroll Outsourcing Budget
Payroll services cost money. It might be a little painful to think about but think about the time and energy you save by outsourcing payroll services.
Payroll services vary depending on the number of employees and if they offer additional services. For basic payroll services, expect to pay between $25 – $150 a month.
Do you need someone to file payroll taxes for you? Maybe you’ll want to hand off staffing or HR to the provider as well.
You want to find a provider that helps with compliance and employee classification. That’s a powerful provider that lowers the risk to your business.
Look at Innovativeemployeesolutions.com as an example of a company that handles payroll and other services.
Technology and Systems
Payroll providers invest in technology to process payroll accurately and efficiently. Is it easy for employees to use so they can track hours worked? Can they get paystubs through the system?
Check to see if their systems are easy to use. It would defeat the purpose of outsourcing payroll if employees go to you for minor issues that technology can resolve.
Customer service is going to be a tiebreaker between payroll providers. Find out if there’s a point person who manages your account.
Ask how they communicate with clients. Are they proactive about things like payroll tax deadlines or getting timesheets in? Do they expect you to know everything and they just process payroll when you give them what they need?
You need to have a trusted partner that anticipates issues and communicates them in advance.
Reputation and Reviews
Asking for references and reading online reviews is a helpful guide to see how they work with other businesses. Find out if they worked with businesses like yours before and if you can contact that business for a reference.
Check out online reviews because you’ll find out the strengths and weaknesses of a company. You’ll see patterns in the reviews that tell you what to watch out for.
Tips for Choosing Outsourcing Payroll Providers
There’s not a shortage of payroll provider options. There may be a shortage of payroll providers that meet the needs of your business.
This guide showed you the best tips for choosing outsourcing payroll providers. Make sure you invest the time to research providers before choosing one.
Click on the Business tab at the top to get more tips to help you run your business.