Roughly 47% of companies in the United States outsource payroll and the rest do it manually. That means someone in accounting is using outdated technology or an Excel spreadsheet to do one of the most crucial aspects of your business.
Save your team time, money, and frustration by outsourcing payroll for your business or nonprofit. Here’s exactly what you should look for when choosing payroll services!
- Expertise and Professionalism
If there are errors in payroll, that doesn’t bode well for either the employer or the employee come tax season. Nip that in the bud by selecting a payroll company that prioritizes accuracy and minimizes errors.
You can usually get a feel for this in reviews of the company or by going through their website. Look for an error rate or another statistic to put your mind at ease.
- Pricing and Software
It shouldn’t cost an arm and a leg to outsource payroll. But, you do get what you pay for, so shop around for a price range that you feel comfortable with.
If you’re searching for “payroll services Australia“, be sure to select a company that either provides software or uses software you already have. That way you’re not spending extra money to purchase software for them to use!
- Standard Deductions and Benefits
Every employer varies in the benefits they offer their employees, but your payroll management contact should be able to handle the following seamlessly and with total accuracy.
- Federal and state tax deductions
- Retirement fund deductions (401k, 403b)
- Health Insurance and Health Savings Accounts
- Life Insurance
- Transportation Funds
- Social Security and other mandatory deductions
- Open Communication and Transparency
Finances are often a tough thing to discuss without formal training. For that reason and many more, it’s important that your payroll outsourcing company is transparent and clearly communicates with you frequently.
You should feel comfortable asking the following questions throughout your working relationship with your payroll service, or even in the courting period.
- If you do make a mistake, who is liable?
- Do we see final paychecks and approve prior to their sending?
- How easy is it for our employees to ask you questions about their paychecks?
- Do you have any additional charges after the first year? Will new employees incur an additional fee?
- What Are They Helping You Save?
As a business, every line item is important, especially your time and energy as a business owner. When hiring a payroll service, deeply consider and calculate how much time, money, and energy this particular service will save you.
If you’re spending more money to outsource payroll, how important is that extra time for you? Are you able to reduce an employee to part-time to compensate for the cost?
Cost is a huge factor in choosing a payroll service because it’s all about convenience. If it becomes cumbersome to manage a payroll service, they aren’t performing.
Selecting Payroll Services
Now that you know what to look for, get to it! By hiring payroll services, you can spend more time doing what you love for your business instead of managing payroll yourself.
Even the IRS website discusses the benefits of having a third-party handle payroll services for businesses to ensure accuracy. So why not give it a try? Keep browsing for out latest.