Choosing Payroll Outsourcing Companies

By: Hannah Miles

Payroll outsourcing companies are service providers that manage or handle payroll processes. Typically included in compensation management service are tasks like cutting checks, computing pay employment, responding to questions from employees about the compensation, withholding and other taxes; distributing checks, preparing payroll forms, and distributing payroll forms.

An HR service provider or consultancy would usually have payroll management as among a roster of services that include managing human resources tasks like recruitment, advice on employment laws and legal representation, employee induction, management, onboarding, incentive programs, communication, management, mergers and acquisitions, training, benefits and retirement.

More companies have been turning to HR consultancies for these services because of the savings on time and costs. And they also benefit from the services of experts, like payroll specialists. Payroll outsourcing companies can also provide a practical solution when the in house team spends too many staff hours handling payroll because of lack of manpower and experience.

What are the things to consider when choosing a payroll service provider? The service provider should have a good team of payroll specialists that have the training, education and track record.

The team should be able to guarantee that they will be responsible for the accuracy and timely delivery of the tasks and outputs related to payroll. State your expectations early and make sure these are in the contract with the service provider. The service provider should also be responsible for addressing the mistakes – which could lead to employees being disgruntled at the company or to possible government action against the company – on the payroll and for finding remedies. Most companies include a clause in the contract which states that they have they would be given financial restitution by the service provider in cases of delayed delivery or failure to provide solutions.

In most cases, payroll service providers are able to complete payroll tasks regardless of long weekends and holidays. So make sure your contract clearly indicates your delivery expectations.

Go for a payroll outsourcing company that constantly keeps its payroll specialists updated with training and re-training. The payroll outsourcing company should also be one that embraces technology and constantly works to find ways to simplify and improve processes.

Most payroll service providers use business payroll software. These programs handle a number of payroll tasks and, in some cases, also handle rostering and a number of payroll accounting tasks like computing wages based on prevailing workplace laws, state, federal and local legislation.

The business payroll software that most payroll outsourcing companies use is typically easy to integrate into the current computer system. This is particularly helpful for easy filing and retrieval of information. The payroll program should also be very easy to set up and navigate. And you should have the option of seeking customer support in case of problems with the software. Some service providers have the payroll program, along with other human resources programs, in one online platform. This entire HR system – essentially human resources meets IT – manages other HR tasks like hiring, recruitment, safety and health issues, employee self service, administration, performance record, training and compliance.

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Hannah Miles is a HR specialist, who manages employee relations and provides innovative support and guidance related to hr functions. We also specialize in Australian payroll including outsourced payroll, time and attendance system and comprehensive payroll reporting.

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