After you’ve evaluated the features available, gotten quotes from different vendors, and reviewed itemized bids, how do you decide on a provider? Here are some tips to make the decision process easier.
Don’t automatically choose the “cheapest” provider.
Low cost payroll services can seem appealing at first, but most are full of hidden fees and charges that activate after you sign a contract. When evaluating a lower cost provider, be especially careful when reading the terms of the service agreement. If possible, have an attorney review the contract.
Pick a reputable company.
In the payroll industry, stability is very important. A payroll outsourcing company that has an extensive client list, caters to your industry, and has been in business for several years is usually a safe choice. Since many companies will take funds on deposit to hold and disburse to employees as costs are incurred, choosing a less established firm can be an expensive risk. Several recent cases of fraud and bankruptcy at less established companies have further shown that choosing a reliable company is very important.
Evaluate a prospective company from all angles. Consult other businesses, payroll processing companies, or even banks, to find out what their experience has been like with a certain provider. Ask the provider why you should choose their company over a competitor. Ask about the procedure for “calling in” payroll, the mechanics of setting up an account, and how charges associated with the service are incurred. Ask if you can try out the service for free before you purchase.
Outsourcing paycheck processing is a smart move for many businesses. Make sure you choose the right payroll vendor for your needs.