Payroll is an important consideration for every business that has employees. Outsourcing payroll services can sometimes make it easier for businesses to focus on other important organizational matters and enjoy peace of mind, as payroll needs are taken care of. Payroll errors and compliance issues can cost money and damage employee perceptions of the company.
When selecting payroll services, however, it is not enough to simply consider paychecks and choose the lowest priced service. Other important factors, such as visibility, payment options, and reliability of the company should also be considered. By considering the following points, you can make payroll services work for your company.
Does Your Internal Payroll Burn Resources?
If your organization does not have an efficient internal payroll solution, it can waste countless labor hours. If there are no employees that specialize in accounting or have a broad range of knowledge regarding different accounting issues, it can spell disaster. If outsourcing payroll services will relieve your company of a largely time consuming burden, it may be time to consider doing so.
Do You Know All That You Need to Know About Compliance?
Federal, state, and local laws regarding payroll and labor can be difficult to keep up with. Trying to manage a business and keep up with compliance changes and needs can be taxing. Doing so may also increase the likelihood of errors. While some payroll software will help keep track of regulatory changes, a payroll service will take responsibility for making sure that your company stays compliant with laws.
Are There Different Payment Options?
Paper checks are not environmentally friendly, can waste employee time, and sometimes even hamper productivity. To make payroll services work well, you should make sure that the payroll option selected offers different ways for employees to get paid. Many payroll services offer these options and many in-house options do as well; it is important to take this into consideration when reviewing companies that offer either service.
What About Employee Self-Service?
Employee self-service is beginning to be viewed as a necessity, rather than an added bonus. More and more, employees expect that they are able to readily access their paycheck information remotely on their own time. If employee self-service is not available as an option with a payroll service, or is difficult to integrate with other HRIS employee self-service options, it may be worth considering a different company or different payroll solution.
How Hard is it to View Analytics?
Payroll analytics can be a valuable tool for decision making. It can also help you spot patterns and alter processes to improve the organization. If you lose the ability to work with your own analytics when outsourcing payroll services, it may be worth considering an internal payroll or opting for a payroll service company that makes analytics more transparent and easier to access. Many organizations benefit from the ability to compare payroll information to other organization data.
Reliability of Payroll Service
When considering a payroll service, it is important that you trust the company. Length of time in operation, number of companies utilizing their services, and reputation should all be considered. You should also make sure that the services offered are ideally suited to businesses of your size in your industry.
Authored by: Dave Rietsema