31 May 5 Things You Need To Know Before Hiring An Outsourced Payroll Provider
Outsourcing payroll duties is an excellent way to save time, reduce the likelihood of errors, and ensure that payroll tasks are taken care of in an efficient manner. However, it’s important to understand that not all payroll service providers are created equal: There are extremely professional, affordable payroll providers and then there are the “too good to be true” bargains that inevitably present more problems than they solve. In order to make sure that you end up hiring the former and not the latter, you should review the five points below before outsourcing your business’s payroll duties:
Make sure the payroll provider offers a complete suite of payroll services.
Ideally, your offshore payroll service provider should do a lot more than just turn timesheets into paychecks. You want someone who can handle the payroll process from start to finish, including error-checking, audit protection, remittances, and so on. Remember that even if you don’t need all of these services right away, you probably will in the future; being able to access them all from the same provider is the most convenient solution.
Verify that the provider has extensive experience.
As anyone who has ever created a payroll knows, payrolls are complicated; calculating each one involves weighing up a multitude of different factors, such as hours worked, benefits, taxes owed, etc. Therefore they need a lot of in-depth knowledge and expertise to perform all of these processes correctly and efficiently. Ideally, your provider should have at least three years of experience.
Check to see if the provider is familiar with your industry.
While it isn’t strictly necessary, working with a provider who has existing knowledge of your industry often confers benefits. If a payroll provider has worked with another company in your field before, they’ll be better prepared to handle the needs and challenges endemic to your industry.
Make sure the payroll provider is reputable and secure.
Handling sensitive data is part of the job description when you’re a payroll service provider. As such, before outsourcing payroll tasks, business owners should verify that the firm they’re interested in hiring has a sterling reputation. Look for an established payroll company that has excellent reviews and can provide verifiable client testimonials.
Remember that customer service and communication matters.
Whether it’s outsourcing payroll duties or hiring accountants, business owners often make the same mistake when choosing financial professionals to help support their business: They only look at their technical credentials and not at their interpersonal skills. This is, however, a grave oversight when choosing a service provider. Because payroll administration is so tightly interwoven with the day to day operation of any business, you’ll need to work with someone who’s willing to communicate regularly, politely, and fluently.
Though choosing a payroll service provider is a big decision, it’s important to remember that there’s no need to worry about outsourcing as long as you make sure you’re fully informed. When executed correctly, payroll outsourcing is the safer and more effective option: A reputable service provider will make fewer errors than an untrained employee and keep your data safer.