Is your small business looking for a new payroll service provider? Deciding to outsource your payroll or switching payroll companies can be a big change. This helpful guide has 7 tips for choosing payroll services for your small business that will help you successfully make the switch.
1. Consider the Timing
Before you look at payroll providers you’ll need to decide when you are going to implement your new payroll system. A good time to convert to a new system is at the beginning of a new fiscal year or the start of a new business quarter.
This will keep your financial records easy to follow. It also won’t conflict with any year-end processing.
The earlier in the fiscal year you make the switch, the better because there will be less historical financial data you need to enter. Even if you are not entering the data yourself, it can still take a while for your company data to be entered. Of course, the more employees on payroll you have, the longer the process will take.
No matter which time of year you choose, a streamlined process for implementation will make things easier. Make sure your new payroll company understands your requirements and can suggest different payroll services to meet your needs.
2. Payroll Services for Your Small Business Should Include Payroll Taxes
Keeping your employees’ paychecks going out on-time is only a small portion of what a payroll service provider does. They also calculate and file payroll taxes on your behalf.
This is one of the most complicated tasks for any small business. Small business payroll taxes are time-consuming, and one misstep can result in large fines from the IRS.
It makes sense to choose a payroll service provider who can do the taxes and process the payroll at the same time. Ask about the company’s experience with industries and choose a company that understands your business’s requirements.
3. Look for Data Integration Capabilities
Many small businesses have existing investments for benefits such as retirement packages, general ledger software, and point-of-sale systems. If your payroll company can integrate all of these existing systems with your patrol system, it is a major benefit.
Integrated systems allow for all of your data to stay accurate and up-to-date. It also protects against duplicate entries. With an integrated system, you will have less paperwork, and you will be able to see exactly where your small business is with point-in-time reporting.
Choose a provider that has an established portfolio of integrations that help with business applications. Some providers develop their own technology and offer a tailored solution for your business.
4. Prioritize Customer Support
Different payroll service providers offer different types of customer support. You should feel confident in the level of support that will be provided by your payroll company. When you contact customer support a specialist should be available to help you 24/7/365.
Ask the payroll company if you will receive a dedicated team member or an account manager for your small business. Will your specialist be available through online chat, phone, or email? It’s also good to know the average response time to answer a request.
You can go online and read references and reviews to see what other customers experienced with the company. Some companies also offer a training program to bring you up to speed on how they will be handling your payroll.
5. Ask About Data Conversion
It is important to take a look at a payroll system that is unified with other HR tasks and tracks attendance. When your payroll, HR, and time tracking tools are all compiled in a database, it provides many benefits.
A centralized compiled service offers your small business greater flexibility and can reduce errors. It will decrease your labor costs because you won’t be hiring multiple companies to do both tasks.
It can also give you better visibility into your companies metrics and allow you to spot trends over time. Look for a provider who has experience in translating the differences in systems and can make them all work together.
They should also be able to suggest improvements that will increase your company’s productivity, reduce errors, and decrease your overall costs.
This can get complicated if your company has employee garnishments, complex vacation policies, or non-cash benefits. Ask the provider how they will be able to meet your unique business needs.
6. Pick a Payroll Company With Time-Saving Tools
The software your payroll service provider uses is very important. It collects your companies data and makes it easy to track, store, and access.
Choose a payroll service that is set up to help small businesses with time tracking tools, online enrollment, and employee self serve. This will save your company time and money.
7. Payroll Services That Will Grow Your Small Business
Small business owners are busy people. Choosing to outsource your payroll services will save you time, and with that extra time, you can grow your business. When that growth happens, make sure your payroll service provider can scale up to accommodate additional employees and service needs.
Choose a provider that has clear and easy to understand payroll provider fees. This will help you avoid any unnecessary surprises further down the line. After all your data has been converted into a new system, it may be difficult to go back.
Ask what those fees will be when your business grows. It’s best to look at additional fees you may incur in the future now to avoid the hassle of switching services.
You Have Options With Payroll Services for Your Small Business
There are a lot of moving parts to consider when choosing payroll services for your small business. These 7 tips will help your business have a successful conversion to a new service provider.
Your FundingTree makes payroll easy by offering solutions that work for businesses of every size and type. These services are less expensive than ADP and Paychex but offer the same time-saving services and top-quality customer support.
Learn more about Your FundingTree and our payroll services for small businesses. We help you save time and money by outsourcing your payroll today.