Hiring your first employee is one of the most important steps in expanding your company. It also has drawbacks, not the least of which is figuring out how you’re going to pay them.
Manually tallying hours and figuring out withholdings isn’t a productive use of your time as a business owner. That’s why there are many options when it comes to hiring payroll providers. These options range from basic payday solutions to comprehensive employee benefits systems.
Which payroll service provider is best for your company?
Your choice of payroll provider will, of course, be influenced by your particular business demands. However, some elements should never be compromised. Keep these seven factors in mind when picking and configuring your payroll service.
1. Constant customer assistance
It is a must to have around-the-clock customer assistance. It’s critical to communicate with a helpful and informed person immediately if there is a system fault or the payroll run goes awry. Your payroll supplier should have an excellent support team because it damages employee trust when they miss a paycheck, even if it is a technical issue.
2. Payroll automation
The best way to maintain a trusting relationship with your employees is to be sure their paychecks are always accurate and on time. I recommend taking the chance for human error out of the equation by finding a provider that offers automated payroll. From calculating wages and withholdings to depositing pay into bank accounts on the right day, automation streamlines the payroll process and saves you time.
3. The process of approval
Staying organised is essential. You may provide yourself and anyone assisting you with complete control over the finances before the money leaves your business bank account by selecting a payroll provider with a fast approval process for paydays.
4. Time clocks
Accurate reporting of the hours worked within a pay period is a requirement for hourly workers. I suggest adopting a payroll service that offers time clock management in place of using several systems to measure time, report it, and determine wages. Payroll solutions with integrated time-tracking software or those that work well with third parties can be found.
Time clocks connected to the payroll system save time for both you and your staff throughout the approval procedure.
5. Bonus payrolls with minimal or no fees
When you’re additional payments to an employee such as bonuses and commissions, a bonus payroll run can let you breathe a bit easier. Payroll runs for bonuses typically give you the freedom to choose the right tax rate, withholdings, and contributions—a process that could be different from paying normal earnings.
Payrolling bonuses might come with hefty fees for certain businesses. Rather, offer yourself the freedom to use a service that charges minimal costs, or better yet, none at all, for bonus payrolls.
6. Detailed reporting that is user-friendly
The biggest expense in any firm is usually the labour force that keeps it operating and expanding. With the use of reporting tools, you and your employees can gain insight into pay, taxes, and hours worked. This information is helpful to your accountant and helps you plan each year. You may have access to a pretty detailed suite of reports, depending on the payroll provider you use.
7. Combining with the software you’re using now
You are probably well aware of payroll expenses—they must be documented in your company’s accounts. It is much easier to start with a payroll provider whose product integrates well with the accounting software you’re currently using. Choose a payroll solution that integrates with your present software to save the hassle of manually compiling data from several systems in the future.
Selecting the best payroll service provider
You have several possibilities when you conduct a fast Google search for payroll providers. Your choice should ultimately be determined by your business needs, which include your budget, the number of hires you plan to make, and the kind of staff members you’ll be hiring.
In conclusion, selecting the right payroll provider is crucial for the smooth operation of your business. By considering these seven essential features, you can ensure that your payroll needs are met efficiently and effectively, allowing you to focus on growing your business.
(Tashia Bernardus)