5 Questions to Ask When Selecting a Payroll Service Agency

Payroll processing is very complicated, not to mention, time-consuming. It is a known fact that when payday comes, employees are expecting their salary to be delivered in a timely manner. Not only that, they automatically assume that the right amount of money is sent to their accounts including double pay or holiday pay. For that reason, it is a must that companies must ensure that every employee is receiving what is due to them.

The old-school utilization of manual payroll systems is slowly fading. Aside from the big risk of committing errors, the traditional way of payroll services is a tedious task. From computations to transferring of funds up to paying taxes, it can be such a long maze of calculation. Moreover, mistakes are very common which can lead to expensive fees and penalties as well if taxes are filed late. These downsides gave rise to computerized payroll system in conjunction with technological innovations in the field of Computer Technology.

Various industries are now hiring payroll service providers to manage payroll processing. With the utilization of top payroll agencies, numerous benefits can be attained. First and foremost, it is convenient which makes it easy for businesses to focus on other important and profit-generating tasks. Moreover, it reduces expenses and tax penalties. Also, accuracy is ensured because payroll service agencies are up-to-date with the latest employee-related payroll tax laws.

To be able to find the best payroll firm, it is essential to read payroll agency reviews first. Moreover, here are the questions that should be asked when choosing a payroll service provider.

What Type Of Payroll Service Do You Provide?

Not all payroll service firms are offering the same level of services. It is vital to know which services are needed in your company and which are not so necessary. Some payroll service providers are offering services that are based on the size of the company. In addition, a greater amount of flexibility is present in other firms which give businesses different options to choose from. This helps any size of enterprises to experience the advantages of payroll services.

The following are specific services that companies should look for:

1. Features

When buying a cellular phone, we do not only search for its ability to send text messages, take a picture or call a friend. We also look for other vital features that make the cellular phone outstanding compared to other units. Moreover, we want to make sure too that our money will not be wasted if we are to purchase it. The same is true with payroll services. It is a must that the payroll firm can provide your business with all the necessary services aside from payroll processing and managing employment taxes. Other vital services that should be provided include direct deposits, multiple wage rates, different earnings and deductions, payroll reports, accuracy-guaranteed payroll taxes and paid time-off management to name a few.

2. User-friendly Interface

The interface should be clean and professional looking. Furthermore, it should be easy to use so that it would not take time to find the necessary things when managing payroll. A simple payroll service is still better than a complex, hard to understand interface.

3. Integrations

When the payroll service provider allows incorporation of other programs or software that the company is already using, financial life of business owners can be simplified. According to Ralph Matlack of Intuit’s Small Business Payroll, examples of integration include accounting software which syncs data from payroll solutions to accounting general record and time tracking.

4. Added Services

Some payroll service companies are offering special services such as the creation of a customized software that is tailored to your business needs. Other services that are beneficial to the company includes pay-as-you-go worker’s compensation, benefits and retirement plan. These value-added packages are provided for the convenience of payroll services’ clients.

How much does it cost?

It is no secret that the use of payroll services offers numerous benefits however, it is inevitable that one of the questions in every business owner’s mind would be, “How much?” Surely, companies would want to purchase services that they can afford and that includes a payroll service that fits the budget. Moreover, the pricing structure of the payroll service provider should also be evaluated.

In an article published by Entrepreneur.com, it was mentioned that most online payroll firms are charging on a monthly basis, from $12 to $200 per month depending on the type of services chosen. Aside from the monthly charges, an additional $1.5 to $5 per month for every employee should also be expected. In addition to the pricing structure, it is necessary that hidden fees should be uncovered. Ask for a comprehensive breakdown of the bill to spare your business from hidden costs.

It is interesting to note that there are payroll service companies which offer a free trial for 30 days. Through this, your business can test run their payroll services if it is really suitable for your specific needs. Moreover, knowing if a contract is required is also essential. Some payroll service firms offer monthly commitments while others propose an annual agreement.

How Secure Is Your Service?

In any industry, security will always be a priority. Payroll services should take security and confidentiality of employee information as a key concern. It is a must that before hiring a payroll provider, a comprehensive review of the payroll agency should have been executed which includes recommendations and feedbacks from various clients. The company should be well-established and experienced with payroll processing. Not only that, it should also be trusted in the payroll industry since sensitive data are to be taken care off.

Keep in mind that employees’ personal and financial information, as well as legal issues, should be protected. In 2014, a massive hack in Sony Pictures Entertainment was investigated by the Federal Bureau of Investigation (FBI) due to internal financial and compensation information that was leaked online. The hackers brought chaos not only to the film industry but to the 30,000 Deloitte employees as well whose detailed salary information was revealed. Other similar cases where also reported wherein payroll companies experience intrusion.

The bottom line is, sensitive matters should be protected by payroll service providers to avoid security breaches. This can be done by consistently updating their security software to prevent hackers from intruding. Moreover, according to Jonathan Gossels, doing the basics appropriately is the best way of securing sensitive data. Therefore, security and safety features of payroll services should not be taken for granted. These things should be taken very seriously.

What Type O=of Customer Support Services Do You Offer?

No matter how easy it is to use the interface, it is inevitable that there will be times when you need to contact the payroll service provider especially in times of trouble. There are companies which offer regular customer services during office hours while other firms go the distance by providing 24/7 customer support to their clients.  For sure, you want to hire a payroll service company that provides assistance when you need it the most particularly when it comes to money matters.

Pat Carson, the founder of Carson & Crew Bookkeeping and Accounting Firm, recommends calling the customer service department of a payroll service provider for a test drive. She mentioned that there are times when the smart person providing service on the other line is actually a clerical person reading a script.

Are you going to communicate with someone who is not experienced or skilled with how your business operates? Are you going to entrust your company and your employees’ welfare to someone who is not familiar with your business? The point here is, when it comes to money, you should be certain that you are dealing with the right people. On top of round-the-clock customer service, it is necessary that the support team who will answer your questions are experts in the payroll industry.

How Is Payroll Delivered?

Traditional payroll service is now replaced by the increasingly popular utilization of automated payroll system. The manual payroll system is considered slower procedure than the computerized payroll system.  Because the latter is simpler and minimizes errors, more and more companies are switching to it.

There are various ways on how payroll services pay employees. Sometimes, payroll reports can be printed or emailed. Employees can receive their wages through live checks, pay card or through enrollment in a direct deposit. Companies have different preferences when it comes to payroll delivery that is why it is necessary that the payroll service agency has these options in delivering pay to employees.

Conclusion

To conclude, payroll is a vital part of every business that is why it should be one of the company’s key concerns. The numerous advantages of payroll services is indeed a good reason to hire payroll service providers. However, before signing a contract, it is a must that a thorough review of payroll agencies was performed to prevent huge glitches in the future. Your investment should be worth the risk.  The best among the top payroll agencies should be chosen for the right reasons.

Searching for a payroll service provider to hire? Read unbiased payroll agency reviews published on CrowdReviews.com and know which among short shortlisted payroll firms are included in the top payroll agencies.