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payroll
10 Questions To Ask Before
Switching Payroll Companies
Running your payroll manually can be overwhelming and costly, considering the time it takes and the cost of making a mistake. That’s why many business owners are turning to cloud-based, full-service payroll solutions: they automate much of the administration and compliance work, and make it easy for you to share access — and maintenance — with financial professionals and team members.
What should you expect from a reputable payroll vendor, and how can you tell if online payroll is the right move for your business? Here are 10 things you should consider and ask before making the switch.
1
What services are included?
Before turning your payroll over to a new vendor, make sure it can meet your needs:
• Do you plan to grow in the next year or two? • How many employees or contractors support your
business each year?
• Do you need to administer any benefits? What about medical insurance?
2
How much will it cost?
Most cloud payroll services bill on a monthly basis. You’ll pay: • A monthly subscription fee, which may range from $12 -
$200 per month,
• A fee per employee, which ranges from $1.50 to $5 per person, every month.
You may be able to take advantage of a free trial period to see the product in action. This can be a great way to test a payroll service, but the thought of setting up a new account can seem daunting! That’s why setup is important.
Start by listing your requirements, then narrow your search to providers who can meet them. Online payroll vendors provide a range of services and reports, and some bundle additional services with their payroll product. Avoiding features you won’t use can help keep your costs lower.
A payroll company should make it easy for you to:
• Collaborate with your accountant, bookkeeper or other team member.
• Pay your employees or contractors by direct deposit — or by check, if you prefer. Some services let you print checks directly, while others mail them to you or produce a report for you to reference when writing checks yourself. • Calculate payroll and tax obligations for each employee. • Automate your state new hire reporting.
• Track and report paid time off, like vacation and sick days. • Administer any pre-tax benefits, like deductions for a
401(k), individual retirement account (IRA), medical insurance, or commuter benefits.
• Manage other adjustments like bonuses, tips, reimbursements, commissions or garnishments.
3
What is the setup process?
Setting up your payroll account should be simple. While the process varies between payroll providers, you should be able to customize your information and start adding employees from the moment your account is created.
4
How are payroll taxes handled?
Paying employees, contractors and the government accurately and on time is a critical measure for any payroll service
provider. So how will your prospective vendor manage the process?
A payroll company should:
• Generate any required forms, like 1099 forms for your contractors and W-2 forms for employees.
• Manage compliance for state and federal taxes,
submitting any forms and payments accurately and on time.
A full-service provider will take care of all these requirements automatically and paperlessly, with no need for you to do anything else.
5
Is your information secured in the cloud?
Moving to modern online payroll should not compromise the security of your sensitive information. Confirm that the service provider will guard your data using:
• The highest encryption standards available, called 256-bit SSL encryption. This is the same technology that banks use to keep your financial details secure.
• All your account information should be behind firewalls and locked up with two-factor authentication.
It’s not just hackers you need to be wary of; equipment failure can also be crippling. You need your payroll information to be accessible whenever you need it. Data should be backed up on a frequent basis — several times a day — to ensure that your most up-to-date records are safe.
6
Where is your data physically stored, and
how is it protected?
Cloud-based information can be accessed from everywhere, but it still has a physical location — one you should make sure is just as protected from acts of man or nature as the electronic data.
It’s not unrealistic to expect that this location will be under lockdown, with multiple layers of security and controlled access through tactics like biometric scanning, keycards, retina scans, and PIN number restrictions. Security cameras that operate 24/7, and staff to prevent any unwanted entry, should also be on-hand to keep your data safe.
7
How easy is it to get help?
Through setup, processing and ongoing maintenance, chances are you’ll need help at some point — even with your payroll automated. Can you get the help you need, when you need it? Detailed information on a website is fine, but you should also expect a timely response from a real person via email, phone or chat. Look for around-the-clock support if you need it!
However, be wary if you find you’re always contacting customer support: these services are supposed to make payroll easy. If you spend all your time seeking help, the “simple solution” may not be the right one for you.
8
Is payroll information easily accessible by
employees and contractors?
Some recordkeeping can’t be automated, but that doesn’t mean you’re the one who needs to look after it. A modern payroll system will enable your staff and employees to access their own dashboard where they can:
• Manage their own on-boarding, for state new hire reporting.
• Access paystubs, pay history and information. • Update their own information for reporting and tax
9
Do your existing tools sync with the payroll
provider?
If you’re currently running your business using software for accounting, time tracking, HR or other back office tasks, syncing them with your payroll provider should be seamless and hassle-free. The best online payroll services make it easy to integrate applications right from your dashboard; connecting your services will save you from having to manually update payroll again.
10
Can the services provided grow with your
business?
One benefit of cloud-based services is that they are often easily scalable — and a payroll solution is no different. Will the vendor be able to accommodate new users and employees as your business grows? What services can you add in the future, if you need to?
Finding the right payroll partner can transform your life as a business owner, alleviating the stress of compliance deadlines and all but eliminating the time you spend keeping your payroll running smoothly.
ZenPayroll is a modern cloud-based payroll service that is simple and delightful to use. Run payroll in minutes from any connected device. All government payroll taxes, reporting, and compliance are taken care of automatically and paperlessly.
Get back to doing what you love! Switch to payroll redesigned for the modern business.
