Choosing a payroll service? 5 things to keep in mind.

HR Insight

Never looked for a payroll service before? Then you will need the following advice to stay away from bad choices.

Once you work with a payroll service firm, there’s no more headache to keep up with the constant change of legal and regulations. Or stay up all night whenever a payday comes. Sounds great, right?

But before getting to this wonderland, you’ll go through a rigorous searching process to find the perfect payroll agency. With so many selection criteria, this process can take a lot of time and effort.  

Our payroll experts have highlighted 5 things you should notice when looking for the right payroll service provider:

Have a checklist

Don’t start without a checklist. It helps you visually review and compare providers, and easily pinpoint the one that tick all the boxes.

So be clear about which functions you want to outsource, and to what extent do you need help. Some agency offers additional services that you may benefit from. Also, think about the features that the best fit agency should have.

Then draft a questionnaire that includes essential questions for the negotiation, regarding their support team, price and fee, payroll software, etc.

Here are some questions you can ask:

  • How many employees will in charge of my payroll?
  • What is your pricing structure?
  • What is the setup process like?
  • How secure are your processes?
  • Will there be any extra fees?

Experience


Does a newly established payroll service firm with pricing discounts sound enticing to you?

Well, cost-saving is a concern for all HR professionals post COVID-19. But paying your employees promptly and correctly should be the top priority when speaking about payroll.

That’s why it’s better to look for an experienced payroll provider with a strong history, solid reputation, and valuable testimonials from their clients.

These providers are familiar with business requirements. They know how to adapt and adjust to fit your needs. They always stay update with related legal changes. They understand the authorities and how to work with them. They can deal with payroll issues and give you advice when needed. And they can better guarantee accuracy in all processes.

In other words, their experience brings you peace of mind.

Advanced technology

Do you want to pour money down the drain for an outdated technology to process your payrolls?

Obviously, no one wants that.

Leading-edge technology ensures information security and the effectiveness of all payroll processes. The providers understand this, so they always try to equip themselves with the latest software and technology. But as each outsourcing firm would have different levels of innovative investment, shop around to find the one that fulfills all your requirements.

Talk frankly to about privacy, data storage and protection, numbers of monthly payrolls, different payment periods, and any of your specific needs. And if possible, ask for a dry run of the software to make sure that it’s new, easy to use, and meet your expectations.

Transparent pricing structure



Hidden fees are unpleasant surprises. For example, some payroll outsourcing firms charge extra bills for new employees, or whenever you ask for a payroll summary report for a specific period. They can cost you a fortune and blow your savings plan away.

So always watch out for hidden fees, especially when the prices seem too good to be true. To prevent any drama from hidden fees, require the providers to explain their pricing structure distinctly, particularly on terms that may incur future additional charges. Then define these terms specifically in related service agreements.

Additional services

As mentioned above, some outsourcing firms offer more than just payroll service.

These 360o service providers can cover all your HR functions. So instead of partner up with several outsourcing firms with different HR services, now you just need one. And then you’ll have more time and energy to run and grow your business, especially in this uncertain time of Coronavirus.

From work permit registration to reference check, outsourcing service to specialized recruitment service, the options are various. And a first-rate payroll service provider is always willing to work with you, to understand your workforce and propose a customized combination of services that best suits your business.

A payroll service is good for your bottom line

A payroll outsourcing service can impact how your employees feel satisfied at work. So, it’s worth a careful selection process with lots of research, comparison and discussion to make the right final choice. With these advice, you’re prone to save your efforts right from the start.

Need to read more about payroll service and other outsourcing solutions? Check out our blog posts here:

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