Key Questions to Ask Payroll Account Processors
Selecting a payroll account processor for your business goes beyond simply finding just any company that offers the service. When it comes to payroll, there are legal requirements every company must abide by to avoid unnecessary penalties and fees. Selecting the best processor requires research — and knowing the right payroll account processors questions to ask.
For businesses that prefer not to do payroll in-house, working with an outside payroll account processor can be extremely valuable, and easier than filing taxes and paying employees, among other duties, on their own. According to the Internal Revenue Service, one out of every three employers has been charged for a payroll mistake, and penalties have reached more than a $1 billion total. Switching to an external company can be daunting (because, of course, change is never easy), but if it is going to provide a more accurate service, it may open the door to greater efficiency at your company.
Are you looking to outsource payroll to an outside vendor? Consider these payroll account processors questions before making your decision:
When should you outsource? Processing payroll internally is not always effective, because it requires bankrolling payroll processing software and extensive training (which in turn demands you keep up to date on staffing changes, deadlines, and tax requirements). When outsourcing payroll services, the service usually includes guarantees it will stay abreast of the latest regulations and changes in technology. On the other hand, if you have only a few employees and limited staffing changes, keeping payroll in-house may be the best option.
What services are included? Basic payroll services usually include calculating payroll and taxes for employees, printing and delivering paychecks, and creating reports and summaries. Some payroll services include advanced features such as automatic check signatures, envelope stuffing, direct deposit, 401(k) plans, issuing W-2 forms, and even benefits summaries.
How can you choose the best provider? Believe it or not, payroll involves a high volume of customer service because it necessitates constant interaction with the service provider. Whether it be sales or customer services representatives, be sure to choose a provider that will be responsive and meet your requests at any cost. It never hurts to research the company and read reviews about the level of service received by previous customers. The provider's location is something else to consider. You want to be within a reasonable distance in case you have to pick up paychecks during an emergency.
How will you know the price is right? The market for payroll services is highly competitive and the provider's fees should reflect that. For basic service, expect to pay between 80 cents and $2 per paycheck, depending on pay period and other factors, and there can be other fees for changes including adding or removing employees.
When it comes to payroll account processors questions, ask as many as you need until you feel comfortable with the pricing, customer service, services offered, and flexibility. That way you can be certain you've made the best choice for your company's needs.Ready to Compare Payroll Services Price Quotes?