Top 8 Tips for Choosing the Best Payroll Management Company
Payroll is among the things in a business organization, which shouldn’t go wrong. Workers must be paid well and on time. Failure to do that they can start finding a new job. So it is important to ensure the payroll function is in able hands.
Outsourcing payroll services to another company will be a perfect option if there is no internal competence. However, not every payroll company is created the same. This is why it is best to consider the following tips to ensure you choose the right company for payroll management Singapore.
1. Consider the Cost
When choosing a company for your payroll services, you need to think of the cost. Although the cost differs from one company to another, it would be vital to know that there is a standard structure for pricing.
With a pricing structure, you can pay a flat base fee. You can do that by either paying monthly or after every pay period. If a payroll company charges you at every pay period, you can pay that fee every time you are running payroll.
And if a payroll company charges you monthly, you will pay every month. That means you will have flexibility when running payroll.
2. Look at the Tax Compliance Management
With rules for payroll tax compliance changing constantly, it would be best to work with a payroll company that has a tax compliance department, which can manage those updates. And once conversions are complete, a team for tax compliance must update your tax tables every year.
According to experts at BoardRoom, the right payroll provider needs to have a reliable tax compliance team consisting of professionals who can review existing data to look for potential tax errors. Your compliance team needs to handle tax payments/filings as well and even help with annual processing.
3. Prioritize Knowledge and Customer Support
When it comes to choosing a payroll service provider, ensure you look at their training and customer support. Focus on finding a provider offering 24/7 support, providing training that helps in understanding the payroll process, and having a dedicated account manager.
In addition, look for a company that gives updates on the newest payroll resources, regulations, and laws for businesses to ascertain they are updated.
4. Compare Payroll Services
Most modern companies focus more on delivering trouble-free payroll management Singapore for all their customers. Some even provide various services, including the following:
- Employee self-service: This service gives workers a self-service portal. With this, workers may update their withholdings, change their data, and review pay stubs without the need to go through their HR or manager.
- Integrations: Payroll information is part of the overall financial data of a business and is required for accounting as well as other financial procedures. Payroll services help to integrate with other data and financial platforms, which want access to that data.
- Payroll reporting: Many services offer their clients a detailed report so that they can have a better understanding of how businesses are functioning. Directors and managers may help in updating hours worked, taxes withheld, and wages paid.
- PTO management: Most payroll companies manage PTO (paid time off) for businesses using a system that helps to track workers’ sick and vacation days. Some of them have a built-in system where managers approve requests, calendar invites are sent out, and workers request days off.
- Payroll processing: Payroll services can automatically calculate wages for every worker and pay period. Hourly employees, overtime, holiday pay, and salaried workers are all accounted for to ascertain every worker gets paid on time and accurately.
5. Check for Customized Packages
A subscription-based model or basic package may be okay for your company. But as your company grows, your compliance and payroll needs may start to increase. And when this happens, odds are, you may require a customized package.
If your service provider doesn’t provide you with it, you might need to go through the hassles of looking for or onboarding another service provider. That said, choosing a payroll company willing to provide you with customized packages from the very start is best.
6. Determine the Possibilities of Software Integrations
If you plan to use software, which you would want to connect to a payroll software program, you must ask for integration possibilities. Most payroll services allow users to load data from software solutions if you download them into spreadsheet formats. Some even have an automated integration allowing you to connect systems with a few clicks of a button.
Among the most common payroll integrations are POS (point-of-sale) software, time and attendance software, employee scheduling, and accounting. And the less time and more employees you have, the higher the odds that you are going to benefit from a software integration.
7. Ask about the Security Credentials
Having proper security measures is important; otherwise, you may expose yourself to a serious data breach and face legal action. The major standard an outsourced payroll service provider you consider hiring must be ISO 27001 accreditation.
However, you need to ask questions revolving around security measures that involve keeping sensitive financial and personal data. Also, ask the company how they deal with data breaches and if one has ever happened.
8. Think of Your Business Growth
Perhaps, right now, you need payroll services for a particular number of workers. But what will happen when you decide to expand? Will you need to look for another service provider?
Looking for another service provider can be time-consuming and a waste of resources. This is why when looking for a payroll company for your business, ensure it can accommodate your needs even if you expand.
You may as well think of the services beyond payroll processing alone. You might not need help with employee development and training right now. But you may need them in the future. So ensure you choose a company that provides services you may need in the future.
When choosing a payroll company, there are many variables you will need to put into consideration, including support, pricing, convenience of use, and features. Doing payroll in-house can be expensive, even when mistakes aren’t prevalent. By hiring a good company, you can use the energy and time you spend doing payroll to focus on making more money.