Payroll Outsourcing: How to Choose a Service Provider

Payroll outsourcing, as quite a number of companies have found, is a practical and sensible way to manage compensation service tasks. These tasks include cutting checks, withholding and other taxes, computing pay employment, preparation of compensation forms, responding to queries about the payroll from the employees, distribution of payroll forms, and check distribution.

Some companies that engage the services of an HR consultancy for payroll outsourcing also typically outsource other HR tasks such as onboarding, employee induction, all the processes involved in hiring and recruitment, management, legal counsel on employment laws and legal representation, communication, mergers and acquisitions, training, benefits and retirement, and incentive programs.

A typical HR consultancy would have these services – aside from compensation management – available. And for a growing number of companies, that is great news. Most companies find that outsourcing some of their HR tasks helps them save on staff hours and other costs. This kind of service is also great news for companies that have HR teams that are understaffed and also for those that have HR staff that don’t have enough expertise and experience yet in handling some HR processes. Outsourcing tasks to a team of experts helps make sure that the job is done faster and more efficiently. Your company also gets to do away with the extra staff hours spent on these processes.

One of the first things to consider when choosing a service provider for your compensation management tasks is the service provider’s track record. Find out how long the company has been in business and if it has built a reputation for topnotch service. And make sure that the team of payroll specialists that you are getting has the right kind of training, experience and education for the job.

You also need to be very clear about delivery of the service. Make sure you are hiring a service provider that can deliver to you the completed tasks regardless of the holidays or long weekends. State the delivery details and expectations clearly in your contract with the service provider.

Check out the technology that the service provider uses. One of the good signs: the company uses the latest technology that delivers results in a fast and efficient manner. A service provider that embraces technology and finds ways to improve the delivery of services is what you should go for. This is the kind of service provider that would be able to provide you with simpler, faster and even less expensive ways to accomplish a number of processes.

For your payroll outsourcing, choose the service provider that uses topnotch business payroll software. This software should be easy to set up and navigate. It should also be quite easy to integrate into your company’s existing computer system. Software that’s user-friendly would also make it easier to file and retrieve data. Ask about customer support. You should be able to have access to one in case there are problems with the software. Some HR service providers have an entire HR system and the payroll program is just one among the entire system of programs designed to handle several HR tasks.