Payroll Outsourcing - 7 Myths to Understand

Unless you are a payroll service provider, processing payroll on your own would be a disappointing task. Managing your own payroll could be a sack full of pitfalls if done wrong. So, if you are a busy entrepreneur, struggling with your own payroll, it’s time to hire an expert or outsource your payroll services. Deciding to outsource this service could be a difficult decision, you might think with the fear of losing control and creating a level of unease, since this is something that belongs to your valuable asset, your own company people. Isn’t it?

Outsourcing Payroll services can help your business save money, and you, the valuable time; to focus on the other areas of your growing business. Outsourcing is definitely beneficial, but it is necessary to understand the myths to ensure a smooth journey through the payroll route. Below listed are the key points that can help you weigh up and understand the services you should expect from your new partner – the payroll service provider you outsource.

See if the Provider is capable to give Assistance

When outsourcing the project, most people think that they now have an on-board partner to manage all their payroll matters. No, this is just a false impression. Most payroll providers will only do what you say.

Subsequently, make sure the provider you want to partner with is qualified and have the expertise to assist you. A good payroll provider would not only have the experience to manage the software, but would also be capable to communicate essential tax and legislative changes. Moreover, an expert provider can offer you the best practices and get you the appropriate solutions for your company and your people.

Make sure the Provider is a Registered Tax Agent

Outsource only a registered provider. The tasks allowed to be offered as chargeable services are listed out by the tax practitioner board, and it would be against the law if a payroll provider is offering services without being a registered tax agent. Therefore, make sure, the payroll service provider you want to sign, is a registered tax agent.

Meet the Provider’s People in Person

Outsourcing your company’s payroll services would be a huge investment, not only for you, but for your valued asset – your staff as well. A provider’s representative will win your heart on the basis of the company’s expertise, professionalism and experience, and will also stay with you through your entire decision process. Moreover, rather than signing a service model, you should partner with a provider. So, have a word with the company’s people. Besides the provider’s business development and account managers, also meet the real people who actually processes the payroll services behind the doors. Alike your business and your valued people, the culture of your soon-to-be payroll partner is equally important.

Check if the Provider is Honest

Most advisable, use any of your current issues as a deciding tool. Exchange the issue with the provider you want to sign. If the provider is experienced and understands your matter, you will be provided an appropriate explanation about how the issue can be solved by using the company’s software and services.

Learn if the Provider is prepared to welcome change

Day by day the digital advancements are rapidly progressing. Therefore, it is crucial to tear off the things you have traditionally done and embracing changes you need to incorporate modern practices to your table. This modern tactic will allow you to spare a good amount of time on the other area of your business rather than the payroll. While signing, make sure that the provider actually take up new initiatives and developments so that the end result will not leave you with outdated technology.

Take enough time

Remember, “Rome was not built in a day.” After choosing a payroll service provider, don’t be in hurry to partner with the company. Rather, take sufficient time and let things go smoothly, especially if you are outsourcing the service for the first time. Important tasks take time. Arrange all your bells and whistles and create an appropriate communication for the change management with your valuable people. Treat your payroll outsourcing decision process as one of your most significant employee appointment activities.

Sort out the Price

Price should not be the only concern while choosing a professional payroll service provider. When dealing with the price, consider the benefits you would be offered by your prospective provider; consider the services and software that can minimize the risk and complaint of your business. There are a lot of things to be taken into account while calculating the true cost; like manual paperwork, payroll training, appropriate staffing (especially at times of an emergency), query management, etc.. Moreover, while comparing the cost, don’t forget to consider the benefits of the service that will be added to your company.

Remember, your decision to outsource payroll services is to improve your company operations, and not to shift the problems. So, keep in mind, your outsourcing decision should be the right one for you as well as for your valued asset.