Payroll is something you can’t afford to get wrong in business. The wrong decision leads to penalties with the IRS. Believe it or not, more than $7 billion in penalties are paid every year.
Luckily, you can hire payroll companies to handle your company’s payroll the right way.
Before you choose payroll providers, you should learn all you can about how to choose the best one. Read on below to learn everything you should know about finding a payroll service company.
Consider All the Services
Yes, some companies focus exclusively on payroll. They are great at what they do and will offer fantastic service. The question is, can you use a company for financial services outside of this specialty?
Examine the other financial services a company offers before hiring them. You may be looking for help with other aspects of finances. Having two companies manage different functions may not make sense.
If you can find one company to handle most or all your company’s financial needs, that will likely reduce administrative hassle on your end.
Check for Software Integrations
Your goal with hiring a payroll service is to minimize the work required on your part. You probably don’t want to go through a ton of extra work just to work with a payroll company.
Most payroll providers integrate with other financial services. For instance, you may set your finances up in a specific accounting program and payroll information in another. Ideally, your provider will connect to each service to get what they need.
Check what software a company uses before hiring them to minimize the work you must do to process payroll.
The more automation for payroll you can achieve with your provider, the better off your company is.
Look at the Options
Each of your employees will have preferences when it comes to getting paid. Most people will likely have bank accounts set up and want direct deposits. But others may prefer getting paid by check or alternate payment options.
Depending on your payroll provider, you can offer those options to your employees.
You may also have other requirements to consider, such as wage garnishments, tax withholding, PTO administration, payroll funding sources, and other factors.
Make sure the company you hire can meet each of those needs to get your payments right.
Examine Your Costs
It’s not cheap to outsource financial services. Accounting is a complex task, and payroll is a specialty that needs unique knowledge to do right. That means understanding payroll law and what it takes to follow the rules.
This makes comparing payroll service costs vital. You don’t want to spend a fortune. But at the same time, you don’t want to pay for a cheap service and not get excellent service.
Get quotes from the payroll provider options you have. Try to see the average price and if someone comes in far below average.
Your goal when doing this is to see what kind of value each provider offers. Try to get the best value you can without paying too much.
Verify Security Precautions
You’re trusting a lot of data with your payroll provider. They need your company’s finances, employee information, and access to accounts.
The last thing you want is for a company not to take security precautions and open itself up to a data breach.
Ask a provider what they do to take security seriously. Do they limit access to data or provide access to everyone? Do they have a secure means of acquiring data that uses encryption?
If possible, research some of this information before searching for payroll companies. The more you familiarize yourself with security, the better you can vet that a company does enough to stay safe.
Ask About Certifications
It’s not easy to start offering payroll services. You’re dealing with financial transactions, so the government wants people who know how to do the job to handle the work. That means you must prove yourself before offering a payroll service.
You do this by getting certified. There are many different certifications available. The exact one you need will depend on the type of company you have.
Ask about certifications before you hire a payroll company. You want to verify that the people working on your company’s payroll have the proper qualifications.
Find Customer Reviews
Before you decide on hiring a payroll company, it’s essential to understand what other customers think of them. Everything may appear great when speaking with a provider. But once you give them your money, things turn out much differently than expected.
Reading online reviews will help you get to the truth. Customers regularly leave reviews for the companies they do business with online. You can search on Google to find those reviews.
If you can’t find many reviews for a company, it makes sense to ask for references directly. If you have business contacts, think about reaching out to them to learn who they use for a payroll provider and if they are happy with the service.
Choose Payroll Providers Carefully
The company you choose to handle your payroll matters a lot. They will be responsible for ensuring your employees get paid on time and the amount you owe them. If you make the wrong choice, you risk payroll falling behind and your employees being out of money.
That’s why you should research carefully when you choose payroll providers. Learn all you can about your options for payroll providers to filter out the bad choices and hire the company that will help you succeed with payroll.
Do you have any additional plans to hire companies to help your business? Check out more website articles to learn more about finding the right help.