7 Questions to Ask a Prospective Payroll Agency: Handling your business’ payroll can be a stressful task. If you run a large company, you’re in charge of ensuring that dozens or hundreds of people receive their livelihood.
However, many businesses have found another way to manage their payroll. Instead of managing their payroll in-house, many companies outsource their payroll services to a designated payroll agency.
Payroll outsourcing has many advantages for employers. Before you can seize those benefits, though, you must determine the right payroll agency for your company. First, there are seven questions that you should ask all payroll agencies.
What are those questions, you ask? To learn that, read the guide below!
1. What Capabilities Does the Payroll Service Provider Offer?
Various payroll agencies offer different assets and capabilities to their client companies. You may not need all the functions they provide and therefore may not want to pay for them all. As such, check to ensure you know what you’re paying for.
Some features offered by payroll processing companies may include:
- Employee Time Tracking
- ACA Compliance & Reporting
- Regional Tax Compliance
- General Ledger Service
- Employee Self-Service Tools
2. Is the Service Compliant With All Relevant Taxes?
Before working with any payroll agency, ensure that the agency complies with all relevant tax laws. These include federal, state, and local tax policies. Ask them to provide an accurate tax calculation engine to keep your business on track.
3. Who Do They Determine Liability?
Another critical fact to know is who bears liability for tax filing mistakes? If it’s you, it’s better to switch to another agency. If you outsource payroll to the best provider, you can shield your business from expensive tax compliance mistakes.
4. Does Their System Automate Time Entry?
If you’re tracking your employees’ time cards manually, you’re slowing down productivity. It’s much more efficient to log employee time when their computer is active.
Following this automated method boosts your efficiency and productivity. It also gives peace of mind, as it shows your employees remain productive during work.
5. Do They Provide Employee Self-Service Tools?
One of the best ways to save time is to allow employees more control of their information. If your HR team must manually update employee records, it can decrease productivity. Instead, make sure your software solution allows employees to update their information.
6. Is There a Dashboard Overview?
Dashboard overviews help make software solutions more intuitive. Your HR team can use this dashboard to give them a keen view of all critical pipeline information.
Ensure your payroll services include such tools. Otherwise, it’s easy to lose track of large projects in your company.
7. Is the Solution Compatible With Your Other Solutions?
It’s much easier to run a business when your systems are integrated. Without that integration, your other solutions can’t communicate with your new tool. Merging your budgeting, accounting, and other financial solutions with the new software is an excellent business strategy.
Find the Payroll Agency that’s Best For You
Finding a payroll agency to improve your systems has many benefits. If you find an agency that answers each of these questions favorably, you can expect your operations to improve.
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