Key Questions to Ask Payroll Processing Companies

There comes a time in every business when you must decide how to conduct payroll. Many business owners begin by conducting their own payroll. With constant change in the laws and hefty penalties for disobeying the federal and state guidelines, most business owners decide to outsource the service to a payroll processing company. Before you decide, ask your prospective payroll provider this list of key questions to ensure they are the right fit for your company.

1. Who am I going to be working with to conduct my payroll? Outsourcing your payroll to a smaller CPA firm or payroll company usually gives you A LOT more personal time with your payroll representative. If you have a question, are you one phone call away from your person of contact or are you going to sit on hold for twenty minutes?

2. What steps does the company take to stay in compliance with the ever so often changing payroll laws? Ask what measures are taken to stay in compliance with the IRS, Social Security Administration and the Department of Labor. Find out when and how ALL federal, state, local, and unemployment taxes are paid accurately and on time.

3. How can I pay my employees? Do you offer direct deposit, check stuffing and mailing and can you possibly deliver the checks? What are the options for reporting the hours? Will it be as simple as emailing them over, a phone call or an online portal where the employees can log in their own hours?

4. What am I paying for? Ask what the services INCLUDE. Find out if new hires, quarterly, year end, and W2 report filing are an additional cost to the services provided. Most, if not all, payroll processing companies charge based on the number of employees. Make sure you find out how your rates will change when your company expands. Find out if they offer any employee benefit services associated with their services as well.

5. What is the company’s confidentiality policy? Make sure that your employees and your company are protected. Find out what the policy is and make sure you feel confident that your information will be protected.

If you’re looking to take some of the burden associated with payroll off your shoulders, outsourcing your payroll is an excellent option. To prevent future headaches, make sure you ask the prospective payroll company all the right questions to insure your company is going to get the best service possible.