Finance

Essential Factors to Consider when Hiring a Payroll Provider

You are probably considering payroll outsourcing; however, still wondering how to get it right. During the transition, you may worry about missing payroll periods or data errors; however, it does not have to be chaotic. There shouldn’t many issues to deal with when you choose the right provider. Here are some considerations when picking a payroll provider:

Implementation Process

Regardless of when you hire a payroll provider, streamlining the implementation process will guarantee a smooth transition. This involves working with an experienced and knowledgeable sales consultant to get a recommendation for the best solution. A reliable payroll provider has a sales team that will be involved in every step of the way. Find a provider that assigns a dedicated implementation manager who can expertly translate systems differences and suggest improvements to increase productivity and reduce possible errors.

Capabilities to Integrate Data

A lot of organisations have existing business investments for benefits like point-of-sale systems, general ledger software, and retirement packages. Integrating these systems with an online payroll system is important since all data is accurate and up-to-date. It’s important to hire a payroll provider with an established portfolio of integrations with most business applications and vendors. A provider who has their own technology is flexible in developing their own data integrations to help get a tailored solution.

Ability to Manage Payroll Tax Compliance

Payroll tax compliance rules are changing constantly. That is why a payroll provider should have their own tax compliance team to help in keeping up with these changes. After completing the transition, the team must update your payroll tax every year and help with the processing at the end of the year.

A reliable compliance team must have experts will carry out a review of the existing data to check for any possible payroll tax errors. Also, they will update tax tables every year as well as handle tax filings, and payments.

Ability to Handle Data Conversion

When converting to a new payroll provider, one of the most essential steps to take is to transfer company data from your old system into the provider’s system. To accurately perform the data migration, a payroll provider should enter year-to-date history into the new payroll solution, carry out a payroll compliance evaluation, and run side-by-side payrolls to the first live payroll submission to confirm the correctness of data and tax settings. The right provider will assign you a point of contact who will take care of the data conversion.

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