Outsourcing your payroll function can save you time and money. It can also get you error free work and reports can be easily generated. However, choosing a payroll service provider requires research and some due diligence. There are a few things you need to understand before choosing a payroll system.
How much money do you have to pay?
The payment to any of these services depends on the service provided. The outsourcing company will offer a variety of packages depending on the number of employees, the type of service and other such parameters. The company can offer a vanilla pay roll service or they may offer additional services. How much are you paying in comparison to other vendors? In order to make a decision make sure your payroll service provides the following services: calculates pf, gratuity, and other such bonuses, incentives, reimbursements, commissions, etc; accounts for health benefits and insurance; and onboards new employee details. These are services that any payroll processing company should offer. If they offer anything less than these facilities, you should look for a new vendor.
How secure is the service?
The service should be completely secure. Since the company handles confidential information, it is important to make sure the company has the technology to keep it secure. The antivirus the company uses, the biometric system, the cameras installed in the company all make up the security apparatus of the organization. It is important to check every aspect of the company’s security before handing them a pay check.
How do they handle the company taxes?
This is one of the most crucial parts of any payroll system. The system should eb able to calculate taxes as per the local taxation structures. It should also account for the changes in taxation rules that occur from time to time. The other crucial aspect to look into is how do they calculate the taxes. What software are they using? Are the people who are calculating the taxes professional experts at taxation? These are important questions to ask a potential payroll partner.
Can my existing system be easily integrated into the new system?
You will be having a system where you have all the data stored about your employees. You will be making the monthly payments, fnf, gratuity and pf contributions based on the calculations this system makes. When you switch to a new system, it is important that the existing data gets transferred to the new system and nothing gets erased. Check with your vendor whether any data will be lost.
How would you access your data again?
This is the final stage of the switch to the new system. You should be able to access your data again. For that the company needs to train you on the processes of the new system. How easy and intuitive with the user interface be for the new system? Are they willing to train you on the processes and help you migrate to their system? Will they charge for the training? These are valid questions to ask the vendor you are talking to.
In conclusion, make sure you dig deep into the company’s proposal and understand whether they cater to your needs in every way. A good vendor can help the business in many ways but a bad one can drain your time and money. Hence, make sure you make a wise choice.