There are cases when we start to look for a new provider. And you have to be prepared for this and know what things you should pay attention to first. It means that such things as service, location, technology, cost, professionalism and location of your new provider should be known for you. The following are tips you can use when looking for a new payroll provider.
No doubt, you have your special need, that's why, you have to know whether your new provider can handle these. Having asked them, try to ask for references in your size and type of business. You're interested in how service is provided. You have to ask the references for other reference back to the provided that they did not provide you with. This is a way of getting the best information for you.
Here you have to find out whether the provider is new on payroll technology. This is needed because it is hard for the major payroll providers to upgrade a system for hundreds of thousands of users. Because of size and inertia they will always be slower to change. As for the very small payroll service providers, they can't afford the newest technology. You also don't want bleeding edge technology just leading edge. No doubt, you want to talk about paperless payroll, online payroll, payroll debit cards and employee self-service. Nevertheless, there are other topics that will apply to your special circumstances.
This item demands to know how long the company has been in business. Find out whether they are an unreliable outfit and will disappear with your tax deposits and whether they have been standing in the community.
You will have dealings with the IRS if nothing else over mistakes that the IRS makes. In case you don't have a CPA on staff you will either have to deal with the IRS yourself or pay your regular CPA to handle the problem. But your CPA may not deal with payroll tax problems on a regular basis. If it is so, then it will be time consuming for him, and costly for you to get up to speed with IRS procedure and policy on an area he doesn’t deal with every day.
You should ask yourself how important is cost in the mix of factors in making a decision on which payroll service provider you choose. Remember that if all other things mentioned above were equal then cost would be the determining factor. Spend hours every pay period because of outdated technology, hours fixing their mistakes if you get the best price. Next what to do is spending hours quelling your employees. And because the new payroll service provider has no CPAs on staff spend hundreds of dollars with your CPA fixing an IRS error.
However, there was a time that location of a payroll company was important, delivery of checks and reports, long distance phone calls, local banking relationships and so on. But it does not matter much in this day and age. Paperless payroll allows location to be absolutely irrelevant as everything is handled over the Internet and all money is moved through the banking system electronically.