Companies are becoming more comfortable using the Internet for critical business processes, and that’s why, online payroll services are becoming more and more popular. So, you have to be ready for this too.
Payroll services offer an attractive and valuable option to in-house processing for many businesses. It means they can provide a less costly and simpler means of paying employees, filing taxes, and fulfilling other necessary but ordinary tasks. Using a direct modem connection, most electronic communication with the payroll service was done.
This method allows payroll data to be "called in" to the provider using software that tracks each employee's pay rate, deductions, and vacation time. All you do is entering the information, and the software dials into the provider's server and transmits the data.
Be sure this method is very safe. It means that since you set up a direct connection to the provider's computers, you will not lose data. But for this you need a dedicated computer with its own phone line and modem, which is kind of an anachronism in a world where most businesses use broadband connections like DSL or T1 lines.
Selecting Online Payroll Services
Some points should be considered when selecting an online payroll service. They are the following:
1. Speed. You have to find out what turnaround time they offer. Get to know how quickly mistakes in your payroll can be corrected and re-issued.
2. Correctness. Even if you outsource the processing you are still liable for paying your employees properly.
3. Ease of use. Remember that tracking and updating employee information should be easy and quick for maximum effectiveness.
4. Customer service. Make sure their reps are well-trained and helpful.
Try to find payroll service that is right for you.
Online payroll services use the Web to collect payroll data. And this happens in two ways. One of them, that is the most essential, is alike to the modem method. It works as the following: using software on your computer, you enter all your employee data and then hit a button to transmit it to the provider. Instead of dialing in over a modem, the software creates a secure connection over the Internet. And this is the only difference.
The other method is alike to the application service provider (ASP) model that has become popular for all kinds of business processes. You access the online payroll service's web site and do all your data entry there instead of using a program installed on your computer. All the processing and storage is done on the provider's side.
Some HR professionals doubt about the security of online payroll services, but these are unfounded. Nevertheless, the security of payroll data is very important to these companies. That's why, they often protect data unlike most small-to-medium-sized companies. Secure Sockets Layer (SSL) encryption assures that your data can't be read by online snoops, and secure data centers with multiple firewalls keep your data safe once it's at the provider.
As for prices, they are usually similar for all methods, and many online payroll services offer many choices.