Finding a Payroll Vendor
Finding a Payroll Vendor
Choosing a payroll services vendor can have a big impact on your business. Remember, a payroll company has access to your and employees’ financial information, bank data, and social security numbers so it’s important to choose wisely.
Beyond all security issues, you should choose a vendor that provides good customer service. Make sure you get references for vendors you are considering, and ask if you can “test” the service by performing a trial “call in” or input of payroll. Here are a few more qualities to look for in a vendor.
Reputation
You should ideally choose a payroll outsourcing company based on recommendations from other businesses. Try to ask businesses in your industry about the specifics of using the service. How easy is the “call in” process? Does the company provide a dedicated service rep? Also ask if the payroll processing company offers to guarantee error free filings by agreeing in advance to pay any fees incurred as the result of lateness or mistake. When talking with a vendor, ask how many times they’ve had to amend reports or filings. Remember, your business is responsible for employee and government agency payments even if the error is made by a third party payroll company.
Services
Make sure you get all of the services you need. You might be able to get a better deal by choosing a vendor that has limited offerings, but ultimately you might miss out on savings that features like reporting, online access, and employee job cost reports will offer. Industry-specific services, like increased insurance amounts, workman’s compensation amounts, or long-term care and medical savings accounts are required for some industries. Don’t just assume that all companies can offer all features, make sure you ask.
Procedures
Most businesses choose one payroll company over another based on the procedures for “calling in” payroll. The process of how payroll data is input is very important. Consider qualities like timing and access.
Timing refers to the turnaround time between when you provide information and when payments are made. The shorter the turnaround time, the better. A shorter window between information relay and processing reduces errors and ensures that pay amounts are accurate. Access refers to the method of information transfer. Can you input information online, or have a bookkeeper submit information? Can you authorize other employees to submit information? Make sure you have access to the vendor when you need it.
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