subject: Payroll Service Providers - Top Seven Must Have Characteristics Of Effective Vendors [print this page] Studies tend to show that in excess of 30 percent of U.S. businesses that process payroll in-house end up being called for IRS audits and pay fines for payroll miscalculations? Do you want to be free from the hassles of payroll processing while simultaneously enhancing its efficiency? Are you aware that good service providers can substantially lower the costs of payroll processing? Are you ready to know what characteristics separate effective payroll providers from the crowd? If yes, then keep reading to discover the seven habits of highly effective payroll providers.
Habit 1: Understand accountability
Reputed firms accept responsibility for any mistakes in payroll and are swift to spot and rectify them. Effective service providers use an inbuilt error checking system to catch errors before delivering checks or money transfers.
Habit 2: Compliance
Effective providers comply with all local, state and federal employment and tax laws. Through rigorous checks and balances, they greatly cut down or get rid of the possibility of IRS audits and penalties for transgressions that happen during payroll processing or payroll tax processing.
Habit 3: Online data transfer
For seamless payroll processing, on time delivery and means to effortlessly deliver payroll data to your provider is important. Effective service providers enable you to transfer data, needed for payroll processing, online. They also offer online systems that can be accessed through web interfaces to evade any need for installation and maintenance of expensive software.
Habit 4: Allow flexible billing
All good payroll providers offer you a choice of fee structures. Almost all impose an initial setup fees and a flat fee for every employee per payroll cycle. Some firms offer multiple fee structures that charge you extra, in addition to the yearly flat fee per employee, for additional services.
Habit 5: Multiple online tools
Payroll services should offer a range of online tools for your HR staff such as software for viewing and printing payroll stubs and tax forms and making changes to deductions. They also offer numerous online tools for business owners. These include tools for inputting time card information for hourly staff and tools to monitor payroll expenditures and deductions to help you to measure and regulate your finances.
Habit 6: Great customer service
An effective payroll processing company will provide you with superb customer service characterized by speedy responsiveness to your queries. It is of utmost importance that they are quick at rectifying errors in paychecks, creating accounts for new employees and addressing other payroll related issues.
Habit 7: Advanced services
Excellent payroll providers offer a number of advanced services to further cut your payroll concerns while improving its efficiency. For retirement plans, they work with financial planners to facilitate your staff in making the right investment decisions. Other services include distribution of key communications to staff members when required, conducting background checks, and enrollment and monitoring of health care, life insurance and other benefits programs.
Assess multiple payroll providers, services offered and fees charged before making a decision. Get references and uncover performance and market reputation of your preferred providers to assure quality and reliable service. Lastly, seek advice from your attorney and accountant before signing the contract.
