The first question I advise clients to ask themselves is, why did you go into business in the first place? While I’ve received a number of various answers, none have ever said they did so to handle payroll or compliance issues. That is the first sign that outsourcing may be a good fit.
When comparing the cost of outsourcing payroll to those of a full-time minimum wage employee, you should be able to see the cost savings immediately. In addition to seeing those cost savings, off-loading the liability and every day time consuming task of payroll, allows business owners and managers to redirect their time and energy to revenue generating aspects of their business.
As a company grows, it can also see an increase in error-making opportunities. By utilizing a professional payroll staff, you can continue to grow and handle various classifications of workers, while keeping the guess work out of being compliant with ever-changing government regulations.
When trying to decide what outsourcing solution best fits your needs, keep in mind a few questions.
- Is the company PEO only, or do they also offer ASO? https://myhrprofessionals.com/2017/06/01/peo-and-aso-what-are-they-and-are-they-right-for-you/
- Does the company just supply the software platform only, or is there professional staff to support your payroll specific needs when they arise?
- Can the outsourcing company scale with your company as you grow? What are some things they can assist with as you grow? i.e. HR support, Benefits Administration, Safety & Risk Management, Time & Attendance System.
- Are the costs straight forward, or are there hidden costs for additional reports, garnishments, or issuing w-2’s?
- Are there any add on packages that would benefit your company at little to no additional cost? e. Supplemental Benefits, or retirement options such as a Multiple Employer Plan 401k
Lastly, keep in mind that most companies will do a discover meeting and demo on their software. Giving you more information on how their systems and procedures work, as well as give you a pricing guide that is built specifically to your needs.