Everyone agrees: paying your employees is an important aspect of running your business; but it can be time consuming, overwhelming and sometimes confusing. One must keep abreast of constantly changing payroll laws, tax rules and employment regulations. Often, you only hear from someone if a mistake has been made. It can be a frustrating, thankless task. Considering the time and effort that goes into manually generating payroll, it’s no wonder many organizations hire a firm to handle payroll services for them.
Many large organizations, with no dedicated accounting team, hire a payroll service to process payroll. But, even small companies, with relatively few employees, see benefits from using a payroll solutions provider. The provider handles everything for you. Employees are paid in a timely manner, cash is deducted from the business bank account, taxes are diverted for state and federal payments and all paperwork is taken care of by the vendor---saving you time, money and, perhaps most importantly, stress. Imagine being able to take care of payroll in mere minutes for a variety of employees including full time, part time, contract employees and freelancers.
These are some of the common services offered by payroll solutions providers:
- Salary or hourly payroll processing
- Payroll reports
- Paycheck delivery via email and/or direct deposit
- Employee self-service access
- Tax withholding
- Benefit withholdings and management
- Tax reporting and payment
- Paid time off management
- New hire reporting
- Integrations (accounting, timekeeping, HR software , etc.)
Another thing to take into consideration are the types of support and customer service you receive as a user of a payroll solutions provider. Because your payroll provider may be submitting tax fillings on your behalf, it is important to work with an organization you can trust, easily contact and get answers to any questions you may have in a timely fashion. In fact, your provider may absorb penalties associated with incorrect tax filings. It’s worth noting that payroll service providers who do NOT outsource support typically have higher rates of customer satisfaction and above-average NPS scores. Additionally, payroll service providers operate in the cloud and manage your payroll remotely with no software requirement on your end.
Switching from payroll software to a service provider is an important step in the long-term success of your organization, so picking a company that you think will work with you is vital. When doing so, don’t overlook projected growth. You don’t want your company to outgrow your provider and have to change to a better suited service. The lost time, hassle and costs of shutting down a payroll service and setting up a new one makes choosing the best provider, the first time, important indeed.