For many companies, regardless of size, the cost of maintaining a payroll department is prohibitive and the stress of dealing with issues is intense. One way around this is to send the work out.
A payroll vendor is a company that takes on the responsibility of your payroll department. They are provided with the information necessary to calculate and prepare the paychecks for your employees. They also can handle the record keeping necessary to prepare and file the complex tax forms that can so befuddle small business owners. In most cases, the cost of the service is more than covered because the company using them no longer needs extra employees or office space to handle this function.
The only real necessity is the ability to communicate payroll information to the payroll company in a timely and accurate manner. They usually can take care of everything else leaving the business owner to concentrate on the major priorities of his business. Employees are pretty funny that way in most cases. They expect their pay to be accurate and on time. This makes payroll preparation such a priority job that it is often better to outsource it to professionals than to attempt it in house.
The services of the various vendors are pretty similar. They produce paychecks and records. The factors that set them apart are cost and customer service. This is so often the case when selecting a professional service of any kind. The problem is that too many make cost the primary concern when customer service is ultimately more important. It is strongly recommended that the business owner does not fall into the cost trap when selecting a firm.
The level of customer service is going to be the important factor. The ability to communicate effectively and be responsive to your company's individual requirements is the single most important service the vendor offers. If you are looking for such a service, it is important to have some references. These references should be similar sized companies with the same payroll conditions as your company.
A small business that is local and hires a few long term employees has few problems, but a larger company with employees that might be in different locations or has high turnover would present a whole different set of requirements. As is often the case in the selection of any professional service provider, make a short list of those that you are sure can meet your needs and provide excellent customer service. Once this list is made, then make your cost comparisons.
A payroll vendor is a company that takes on the responsibility of your payroll department. They are provided with the information necessary to calculate and prepare the paychecks for your employees. They also can handle the record keeping necessary to prepare and file the complex tax forms that can so befuddle small business owners. In most cases, the cost of the service is more than covered because the company using them no longer needs extra employees or office space to handle this function.
The only real necessity is the ability to communicate payroll information to the payroll company in a timely and accurate manner. They usually can take care of everything else leaving the business owner to concentrate on the major priorities of his business. Employees are pretty funny that way in most cases. They expect their pay to be accurate and on time. This makes payroll preparation such a priority job that it is often better to outsource it to professionals than to attempt it in house.
The services of the various vendors are pretty similar. They produce paychecks and records. The factors that set them apart are cost and customer service. This is so often the case when selecting a professional service of any kind. The problem is that too many make cost the primary concern when customer service is ultimately more important. It is strongly recommended that the business owner does not fall into the cost trap when selecting a firm.
The level of customer service is going to be the important factor. The ability to communicate effectively and be responsive to your company's individual requirements is the single most important service the vendor offers. If you are looking for such a service, it is important to have some references. These references should be similar sized companies with the same payroll conditions as your company.
A small business that is local and hires a few long term employees has few problems, but a larger company with employees that might be in different locations or has high turnover would present a whole different set of requirements. As is often the case in the selection of any professional service provider, make a short list of those that you are sure can meet your needs and provide excellent customer service. Once this list is made, then make your cost comparisons.