Tips for selecting a payroll services vendor

Things to consider when outsourcing payroll

After you have decided that a payroll services provider is the right option for your company, which services your company needs, have researched various payroll outsourcing providers and gotten some quotes, it may seem difficult to decide on one. Here are a few things to factor into your decision process that will assist in weeding out the alternatives: 

Inexpensive might mean expensive: Low monthly fees doesn't mean less expensive. Some payroll processing providers include hidden fees that only become apparent once you have signed the contract. Read the fine print carefully, and if in doubt, have an attorney review the contract. Make sure that you have a clear understanding of who is expected to pay for what. For example, if the payroll provider fails to submit something on time, who pays the late charge?

Reputation.  Payroll companies will have some of your money in an account to draw from to pay your employees and government agencies. Make sure that your money is safe. There have been recent fraud and bankruptcy cases involving payroll services providers; selecting a well established and reputable payroll provider will ensure your money is in safe hands. Ask the vendor about their history, number of clients, and what other functions they provide aside from payroll.  

References. Talk to other companies that have used a particular payroll processing company about their experience. Ask these pervious clients about the accuracy, efficiency as well as software needed to update employee work history for each pay period.

Ask Questions. Ask the payroll company about setting up an account, using their payroll software and the charges for their services. Ask if you can use a trial version of the software or another means of testing it out such as a demo or reference call. It is important that you like the way the program works.    

You have selected to use a payroll company as opposed to doing it in-house, and this is a smart idea. Make sure that you spend an equal amount of time researching your payroll vendor to ensure you get the best deal and services avaliable.  Outsourcing payroll eliminates some of the headaches associated with this timely administrative task, thorough research will help make your payroll services experience a positive one.

Monique L. Myers is a writer, surf instructor and an art enthusiast based in San Diego, California. She writes extensively for Resource Nation and VoIP Service, both online resources that provide expert advice on purchasing and outsourcing decisions for small business owners and entrepreneurs.