Often the most challenging aspect of running a business is keeping noncore, but critical, functions such as payroll, human resources and IT running smoothly. That’s where outsourcing can come in. The Business Accounting Services team of professionals at Kruggel Lawton are big fans of outsourced payroll for our clients. If a new client starts working with us and tells us they are attempting to process payroll internally, we can’t wait to share how outsourcing will help them save time, money, and headaches down the road. With so many great providers to choose from, both local and national, it’s easy to find one that is the best fit for your business and budget.
Here’s a little more detail on why we think outsourcing payroll functions is a good idea:
And then there’ s time savings on the employee side. Many payroll providers feature an online “Employee Self Service” (ESS) tool. ESS allows employees to log in to their account, view paystubs, and confirm personal information. They don’t have to wait for the business owner or HR department to get back to them with information, it’s all stored electronically.
Finding the Best Fit
Selecting a vendor for outsourced payroll services requires careful consideration. Not every vendor will be able to provide the functions and level of service you’re looking for. Begin by soliciting referrals from other business owners that are comparable to your own in terms of number of employees and revenue. Among other things, ask about vendors’ customer service — how often do problems arise? When they do, is the vendor responsive and does it resolve issues satisfactorily?
Also think about fee structures. Some vendors charge a flat fee that increases as you add employees to your payroll. And, fees aside, can the vendor adapt in case you expand or downsize in the future?
Liability is another significant issue. Mistakes by payroll providers can lead to sticky and expensive compliance problems. Will the vendor assume liability, or will you be on the hook for resulting costs? Similarly, be sure to check out the vendor’s financial stability and business culture. You don’t want to park your critical services with a vendor that could go out of business without warning or with whom your management clashes on issues such as risk tolerance and ethics.
Once you’ve selected a vendor, it’s important to maintain frequent communication with them through implementation and then regularly throughout the course of your relationship.
If you’re interested in hiring a payroll company to streamline operations for your business and have some questions, give us a call or send us a message. We’re happy to help point you in the right direction!
Jill Replogle - Senior Staff Accountant
Senior Staff Accountant
Elkhart | firstname.lastname@example.org
574.264.2247 ext. 308