Tips for choosing a payroll service provider
What to Look for in a Payroll Service
Not all payroll providers offer the same level of service. Here are some specific things businesses should look for from a payroll provider, including:
Features. Besides payroll processing and the handling of all tax obligations, you should also consider whether the service offers multiple pay options, like direct deposit, paper check or prepaid debit card. You’ll also want to see if the provider offers multiple wage rates, paid-time-off management, workers’ compensation administration, Batch Payment posting,Batch Transaction Editor and detailed payroll reports.
User Friendly. The payroll service should not be too complex to understand. It should have a clean and easy-to-use interface that allows you to run your payroll and add employees into the system in a matter of minutes.
Cost. Businesses want to find a service that they can afford. In addition to cost, you also need to determine if a contract is required. Many services operate on a month-to-month basis with no long-term contracts, while others require yearly commitments.
Reputation. Find a provider with an established track record, so you can feel secure knowing the company has dealt with the payroll issues you may face.
Integrations. Whether they are built in or able to be created via an open API, you want a payroll service that integrates with the programs you are already using, like leave management, time and attendance systems and accounting software.
Support. Look for a payroll service that provides help when you need it. You should inquire about whether you will have a dedicated support representative who will always be your main point of contact.
Outages. Online payroll services are cloud-based, which puts businesses at the mercy of the payroll provider to keep it up and running. Be sure to ask whether the provider has many outages and how often it is down for maintenance.
Employee self-service. Your payroll service should allow employees to log in on their own to view digital pay stubs and year-end tax forms.
Software flexibility. Some payroll providers offer a variety of additional services, such as benefits and retirement plan administration.Data Backup: Safety of data is a very important element when choosing a a payroll software.You should the provider whether there is a backup option and whether it is reliable.
Other questions to consider when choosing a payroll service include:
- How often are their tax tables updated for compliance?
- Do they have other clients in your industry?
- Can they integrate with your employee benefits offerings?
- How will they handle your business as your company grows?
- What type of security measures are in place to keep your company’s payroll data secure?
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