A payroll company is a very important segment to an efficient and productive organization. Payroll is essentially what protects and maintains the happiness of any employers most valuable asset; their employees. Selecting payroll company can be a daunting task, but there are 6 key questions to ask when looking for a payroll company.
These 6 questions should be; which payroll services are offered, the cost, how taxes will be handled, the safety and security of the service, customer service support, and is the payroll company able to scale to your business needs. These are all important questions that must be answered in a search for a payroll company.
1.) What will be the services provided? There are various payroll services that a company may provide. Some services may be necessary while some may be far too much for the needs of some companies. A company will have to know their own needs. If a company pays majority hourly workers, a payroll company could provide services tailored to clocking in and clocking out. Also, direct deposit is an increasingly popular service that payroll companies provide to some business. Lastly, mailing services of year end payroll information is also important to some companies. Having the most amount of access to services could be crucial for the productivity of an organization.
2.) The cost is something that would be a main concern to anyone exploring payroll companies. The costs can vary significantly. Depending on the size of the given organization, monthly costs can go from hundreds, to thousands, to tens of thousands. It depends on the workforce at hand and the requirements of the given organization. Something important to consider is the services that will be provided at the estimated cost. Cost structures can vary with hourly workers, salaried employees, and access to information.
3.) Taxes and how they will be handled is important to any organization. Taxes can vary state to state and nation to nation. Quarterly reports and year end tax information is extremely important. Abiding by the state and federal requirements can determine whether an organization will be in business in the future. Fully understanding how the taxes will be handled by the payroll company is essential to future success and what both parties are responsible for.
4.) Safety & security of the payroll company. When payroll companies prioritize safety and security of information and the handling of private data is very important to an organization. When searching for a payroll company, it will be important to ask how the payroll company prioritizes the safety and security of data & information. If the does not have a policy in place, an organization could be on the hook for future lawsuits and data breaches.
5.) Access to customer service and support. When selecting a payroll company, it would be very helpful to have a grasp on how willing they are to help with various questions or concerns. When selecting a payroll company, there may be many challenges and questions employees may have such as access to online documents, changing addresses, bank accounts, etc. It will be important to have a company who is able to provide tech support and customer service if that is a requirement an organization sees as relevant.
6.) Lastly, if an organization plans on growing or scaling in the future, it would be a good question to ask if the payroll company is able to grow with your organization. If they are limited in their services and offerings, it may be worth while to ask questions on how large of an organization the company is able to service. Scalability can be a good thing for organizations and it would be detrimental to have a payroll company hold an organization back from scaling.
Although the process of asking these questions of a potential payroll company may be a lengthy process, it would be wise to have an understanding of all these concepts when selecting a payroll company.