Tips On How To Choose A Payroll Services Company
When researching payroll services in Nashville, Tennessee, it can be hard to know what to look for. Sometimes, it might appear that all payroll services are offering the same thing, but there are a few considerations companies should keep in mind when choosing a payroll provider.
Few Considerations for Choosing a Payroll Provider
1. Get a Company that Includes Payroll Taxes
Paying employees is only a small part of what companies need to do when processing payroll. Calculating and filing payroll taxes is one of the most complicated and important HR tasks for any business. Not only are payroll taxes time-consuming, but mistakes can result in hefty fines from the IRS. It makes common sense to outsource payroll taxes when also outsourcing payroll processing. Companies in Nashville should look for an all-inclusive payroll provider with a trusted reputation for filing payroll taxes correctly and on time.
2. Choose a Tech-Savvy Company
Some payroll services operate with antiquated or outdated software and user-friendly web tools. Whichever payroll outsourcing company you choose, make sure it uses up-to-date software that can be easily integrated with your company’s HR systems. Payroll services with better technology also tend to be more aware of the security threats to the sensitive data stored in payroll software. Find a company that takes their technology and security seriously.
3. Find a Service with Time-Saving Tools
A lot of information goes into payroll processing and taxes, but some software programs have made it easier to collect, track, and access that information. Finding a payroll provider that has timekeeping tools, online enrollment tools, and employee self-serve will save your company time and money.
4. Prioritize Customer Service
Good payroll software is extremely important. But, sometimes, you will need or want to talk to an actual person. Be sure that your payroll service provider has a customer support team that’s available to coach you through both your initial transition and answer questions for years to come.
5. Pick a Company that Can Grow with Your Business
The main benefit of outsourcing payroll is freeing up time to grow your business. When that growth does happen, you need a payroll service that can scale up to accommodate additional employees and services. Make sure to find a payroll service with a clear pricing structure. This will help avoid any potential surprises as your service increases.
6. Find a Local Payroll Outsourcing Provider
If you’re a Tennessee-based business, you should find a payroll service that is based in Tennessee. Not only does this allow for in-person collaboration, but local providers are more aware of laws that will directly affect your business. Payroll laws are constantly changing, and local providers are the most aware of changes in the areas in which they are based.
Timing Of A Payroll Conversion
Deciding when to implement a new payroll solution is important. If you are considering a mid-year conversion, Quarter 2 is a good time to start the process. Another option is to convert at the end of the year. The ideal time to begin a year-end conversion is October so it doesn’t conflict with any year-end processing you need to handle.
No matter which time of year you choose, a streamlined implementation process will ensure a smooth transition. Part of this process is working with an experienced and knowledgeable sales consultant who understands your needs and requirements to recommend the best solution. Given the complexity of workforce solutions and the multitude of capabilities that will impact your company, a good payroll provider should have a sales team that is involved every step of the way.
What Type of Backup Plan Do They Have?
What happens if the company has an accident in the office and your records are destroyed? What if the person who handles your payroll is ill? You need to know the company has a backup plan or several should anything go wrong. It’s not just important to know your business is in safe hands but feel relaxed at leaving them in charge of your business as well. Far too many people don’t consider this when choosing a new payroll service and lose out. When you’re choosing a new service you have to ensure there are backup plans just in case.
Do They Offer Customer Service or Support?
No customer support? If a company doesn’t have any support on offer, then it’s something to be very careful of. Having no customer support can be bad simply because, if something goes wrong and you need to contact someone, there isn’t anyone to talk to. That is why when choosing a new payroll company, you have to ensure there is some level of customer service or support on offer. To find out more, check out www.payrollserviceaustralia.com.au.
Bonded and Insured Companies Are a Must
You need to know that, if something goes wrong, the company you choose will take full responsibility for it. There could be any number of problems with payroll and a good payroll service should be bonded and insured so that if something does go wrong they can reimburse you for the money lost. It’s not always something you think about when searching for new payroll services and yet it’s really quite important. You cannot afford to hire someone that isn’t bonded with the state or insured.
Good References Are a Must!
While it’s not always easy to get a referral, you shouldn’t look past a recommendation or reference. Companies that have a good track record won’t scowl too much when you ask them for a reference or two, they should jump at the chance to show how trustworthy they are. You should always look at their references or even read some reviews online and see if you like what you’re reading.
Setting up an automated payroll system
A company that has never jumped into the deep end of automation will be surprised at how easy it is to get started.
With RPA programs, much of the work is already done. Most of the software is capable of running alongside the company’s pre-existing system, which means that implementation is relatively simple, especially in contrast to a complete system overhaul.
Here are five steps to a successful implementation:
1. Digitize all payroll
At a time when people fear that nearly all of the modern workforce is going to be taken over by computers, it’s stunning to note how many companies are still using pen and paper to calculate their monthly payroll expenditures.
There is no reason to avoid using automated software for payroll management, with many companies like Papaya Global and Gusto offering solutions that can bring your payroll service into the current century in one shot.
It’s a vital step in the automation process because the bots that will do the job need digital records to work with. You can’t automate if you are committed to a pen-and-paper solution.
2. Bring all payroll together
Whether your company is a startup with fewer than a dozen employees or an established business with workers in different countries, aggregating all of the information into one place on a single platform is not only good for automation, it’s also a great way to start collecting business intelligence data from your payroll and planning for the future.
Since payroll will always be the biggest expense item in virtually any company, finding ways to be more efficient will be increasingly essential to growth and competition. Missing out on the biggest source of useful data would be a tragic missed opportunity.
3. Choose an automation system
With relatively low-cost RPA solutions, such as IUPath or BluePrism, it’s hard to go wrong with an automation solution. However, it is worthwhile to look at certain factors to make sure that they align with your automation goals. If you are trying to grow your workforce quickly in the coming period, make sure it can scale as necessary.
If you plan to use payroll automation as a test model to see if automation can work in other departments, such as finance or human resources, make sure the software company can handle those areas as well. Automation is moving quickly. You want to make sure you can use your experience with payroll to your full advantage.
4. Prepare your workforce
Many workers continue to see automation as a threat that is not only going to push them out of their jobs, but also permanently take them out of the workforce with no way to earn a livelihood. Good managers prepare the workers for automation by presenting the benefits for everyone involved. When it comes to automating payroll, workers should recognize that the time they save will go toward more fulfilling and creative tasks that robots can never do.
The future of work is both more digital and more human. Workers fear the digital half of the equation—so it is essential that they are fully aware of the human side as well. Instead of feeling threatened by losing their jobs, they can feel empowered and inspired to be doing things of greater value that could result in higher pay.
5. Stay alert to external changes
While simple payroll compliance is one of the biggest benefits of digitizing and automating payroll, there is still a need for human involvement in the process, especially when it comes to tracking changes in legal matters.
Compliance is an ongoing process, not a one-time fix, and failing to stay up-to-date on changes in the law could end up costing money in fines.
In short, even the best automated system requires human involvement at various levels. The bots may be able to deliver high-quality service in speeds five to 15 times faster than a human, but the system needs oversight. It would be a mistake to program it and forget it, especially when the stakes are so high with payroll.
Your business needs
Before you can compare software options, you need to have a clear idea of what your business needs from a payroll service. Here are a few questions to ask yourself:
- What size is your business? How many workers do you have?
- What kind of workers do you have, contractors or employees?
- Do those employees have benefits?
- Who will manage payroll and how much time do they have to devote to it?
- Does your payroll manager always work from the same place?
- How comfortable is your payroll manager with regulatory and legal issues when it comes to payroll?
- How much budget do you have to allocate toward payroll processing?
- What is your biggest pain point in your current payroll process?
Use your answers to these questions to guide you through the rest of the criteria you need to evaluate before you choose payroll software for your small business.