You run a small business, and that means plenty of things. You have to be a salesperson and an accountant, a marketer and a janitor if necessary. Sometimes, it’s just too much.
Outsourcing payroll is a wonderful way to get around one of the major headaches that come with business ownership. But more than that, it is one of the best ways to stay compliant with employment laws.
But before you begin, there are some key factors to consider. In this article, we give you our top seven when it comes to outsourcing your payroll.
1. Company Size
There are a few factors you should consider before outsourcing your payroll, company size being one of them. If you’re a small business, you may not need it since you can likely handle it in-house. However, if you’re a growing business or have multiple locations, outsourcing payroll can save you time and money.
2. Industry
The type of industry you’re in will dictate the type of payroll services you need. For example, if you’re in a high-risk industry, you’ll need payroll services that can handle compliance and regulations. On the other hand, if you’re in a low-risk industry, you can get by with a simpler payroll service.
3. Geography
Before outsourcing payroll, businesses must consider the geography of their employees. They need to make sure that the company they choose can handle employees in multiple states or countries. It can also affect compliance with local laws and regulations, currency exchange rates, and cultural differences.
4. Compliance
When it comes to compliance, there are a few key things to keep in mind before outsourcing payroll. First and foremost, you need to make sure that the company you’re considering is up to date on all compliance regulations. They should also have a solid understanding of the compliance landscape and how it affects your business.
Furthermore, they should have a robust system in place to ensure that all payroll processes are compliant. Finally, you should always verify that the company you’re working with has a good reputation and is accredited by the Better Business Bureau.
5. Cost
Some things to consider include the cost of the payroll systems, the cost of employee training on the software, and the cost of employee time spent on payroll each week. Ultimately, you’ll want to make sure that the cost savings of outsourcing payroll outweigh the costs of keeping it in-house.
6. Flexibility and Customization
Providers should offer a range of services and solutions that can be customized to meet the unique needs of your organization. This includes solutions for managing employee data, leave and attendance, tax compliance, and benefits administration. Look for a provider that has a proven track record in delivering high-quality, customized payroll solutions.
7. Provider Stability
When considering provider stability as a factor in outsourcing payroll, be sure to review the provider’s financial health, their client retention rate, and how long they have been in business. Additionally, review the provider’s customer service rating and reviews to get a sense of their stability and how they handle issues that may arise.
Ready To Try Out Outsourcing Payroll?
There are many factors to consider before outsourcing payroll, but the 7 most important are: company size, industry, geography, compliance, cost, flexibility and customization, and provider stability. When making the decision, be sure to do your research and understand all the potential implications.
Want to find out how outsourcing payroll can increase productivity and save you a lot of time? Just browse our articles to learn more!
