Key questions to ask payroll account processors

By BuyerZone Editorial Staff

To make sure you're making an accurate assessment among different possible payroll processors for your payroll account, ask them all the same questions. Here's BuyerZone's suggestion of the best collection of questions to pose.

Features offered

• What does your basic service include?
• Besides payroll and tax filing, what additional services do you offer? What do they cost? (The list can be endless, from 401(k) and Section 125 plans to employee assistance programs and personnel forms, etc.)
• Could you send me a sample payroll package that includes all the materials I would receive each payroll period? each quarter? each year?

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• Can I see an example of the worksheets I will be using to enter payroll data? What is your payroll coding system like?
• How can I communicate payroll data? What percentage of your clients currently use the option I prefer? Do you have a "never-busy" fax policy?
• Is your software compatible with my computer system?
• Will I be working with a dedicated rep or a customer service pool? If I have a dedicated rep, what about when he or she is out of the office? If I have a pool, how many reps will be in my pool? Will this pool have a supervisor?
• What methods ensure the accuracy of the entered data? the confidentiality?
• What additional costs are associated with direct deposit? What are the limitations? How many different accounts can my employees deposit into?
• How many deductions can be made per employee?
• How are changes in tax status and addition/deletion of personnel communicated? What are these deadlines for each pay period?
• How quickly can you re-run a payroll if there is a mistake? Will you re-run the reports if that happens?
• What training do your customer service reps get? How high is the turnover?
• If I switch to you, who will be responsible for handling and setting up my payroll account?
• How long does your average client stay with you? How big is your average client?
• Can you track sick days, vacation days, FMLA days, etc. for each employee, too?

Tax filing and notification

• If I use your tax filing service, do you cover the penalties and/or interest charges?
• Do you provide filing assistance for local taxes?
• What is the cost to file taxes for multiple states?
• How will you handle the EFTPS requirements?
• If I don't have you file taxes for me, will you notify me of my federal and state tax obligations?
• Will you complete all the forms I need to submit?
• When are the funds for paying taxes taken from our company's payroll account?
• How do you research changes in legislation and regulation?

Cost of service

• What is the cost for your service for one year, including year-end W-2 forms?
• How long are these rates in effect? What rate increase should I expect after that?
• If there are payroll data mistakes, how long will it take to reconcile the errors and what will it cost?
• Are there charges for adding/dropping an employee, or for adjusting employee information?
• Are paychecks and tax payments drawn against our company's payroll accounts or yours? If yours, when are funds transferred?
• Will you offer me a free trial?

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