FinTech

How to Choose a Payroll Solutions Company

Choosing a Payroll Solutions

How do you choose a payroll solutions company? Every business that has employees needs some way to pay its staff. Many companies today choose to hire a payroll solutions provider to streamline the process. Not only is it convenient to outsource the work, but the employer does not need to hire a bookkeeper or find a way to have it done internally.

What is a Payroll Service Company?

A payroll service company processes payroll calculations, tax statements, year-end taxes, and more. A full-service payroll provider also handles withdrawals, deposits, withholding, garnishments, and new hire reporting.

A payroll reporting system makes it easier to pay your employees, full-time, part-time, contract employees, and freelancers. Using this system makes it easier for you to focus on your business, not on the payroll.

The following is a list of the most critical capabilities your payroll solution company must-have.

  • Compensation Administration
  • Compliance Management
  • Customer Support
  • Direct Deposit
  • Employee Self-Service
  • Payroll Processing and Management
  • Reporting
  • Tax Filing Services

In addition to helping you process payroll, payroll companies calculate and file payroll taxes and generate tax statements. The pricing for their services depends on the number of employees and the scope of services you choose.

Most will charge a base fee per pay period or per month, which could range from $20 to $100, plus a per-employee fee of $1 to $15 per pay period or month.

Consider features such as reputation, customer support, ease of use, cost, and integrations.

How Do You Know if You Need A Payroll Solution Company?

First, determine what your current “irritants” are. What about your current system bothers you? Then decide what your specific service requirements are. What bells and whistles would you like that you don’t currently have? Choose a vendor to consult with, ask questions, and gather information on their services. 

Consider how this vendor can meet your requirements, such as:

  • How will they support your company’s growth and scale?
  • How do they handle the administration of payroll reporting?
  • Do they handle the necessary forms to the CRA?
  • How do they manage updates and changes to regulatory compliance?
  • How do they protect confidential and sensitive data with their system?

Test the product to see first-hand what you will be working with. The user experience should be simple to understand for all who will be using it.

Payment history and employee information should be easy to access, with all the pertinent information on the product dashboard. Also, there should be an option to integrate and sync your business tools and applications on their product.

Make sure you understand what the training process will involve. Will there be product demos, tutorials, one-on-one assistance, etc.

Also, consider the level of support they offer you in getting your current payroll information and records into their system.

Once you decide to proceed, if you currently have a payroll solutions company, review your contract and check any restrictions or clauses, such as cancellation terms. Negotiations may be required to break your contract smoothly to avoid complications later.

Ideally, the proper time to switch payroll service providers is immediately following a pay period, between fiscal years, a new year, or a new quarter. There will be fewer data to migrate over if done as early as possible in the year.

Using the services of a payroll solutions provider can make your life so much easier. Your time is better spent growing your company. Let another professional handle your payroll.

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