TABLE OF CONTENTS:
- Introduction
- Advantages To A Small Business Using Outside Payroll Services
- Evaluating Payroll Service Companies
- Online Payroll Services
- Frequently Asked Questions (FAQs)
- Glossary of Terms
3. EVALUATING PAYROLL SERVICE COMPANIES
You're considering outsourcing the administration of your employee payroll accounting to an outside Payroll Service Provider. There are a few questions you should ask in determining if outsourcing is right for your company; and, which Payroll Service Provider is best suited to provide the services your company requires today and in the future.
- Compare fees charged with at least 3 Payroll Service Providors.
- Ask what services are included in their standard fees and what additional expenses you should anticipate for additional services throughout the year.
- Will you require 401(k) plan management or Direct Deposit?
- Compare anticipated annual cost for outsourcing with current expenses related to inhouse payroll.
Most basic payroll processing fees include payroll processing, check generation and distribution (or direct deposit), payroll tax filing, and W-2 generation. Additional services can include direct deposit, 401(k) management, human resources management, and employee handbook development.
Additional issues to address include:
- How many days does the payroll provider require for processing payment?
- What are policies on last minute changes?
- What is included in reporting schedules that payroll processors provide?
- What happens if a filing error is made? Who is responsible for correcting? (You should m ake sure a payroll provider accepts financial responsibility for any filing errors made.
Remember, you can negotiate fees with the Payroll Service Providor. Request references. Ask questions.Click here to read more on questions to ask when evaluating Payroll Service Providors. The professional Payroll Service Providor should be willing to work with you in providing the services best suited to accommodate your particular business needs.