Payroll is one of those business functionalities that stays quietly in the backend of operations while performing a critical role in running the business, i.e. getting paid. One small hiccup in payroll processing can lead to major disruptions in operations. This functionality becomes even more crucial for Small and Medium Businesses (SMBs) since they often struggle to manage their workload with limited resources and budget. Managed Payroll Service is a viable option that many SMBs opt for as it allows them to focus on their core business while a third-party vendor handles all their Payroll processing needs at an affordable budget.
Managed Payroll providers offer professional services taking away the pain of running payroll. However, not all payroll providers are the same. All businesses are unique and so are their needs. Here are some key factors to consider when selecting a Payroll Service Provider in Toronto:
Most payroll service providers offer standard payroll processing services. However, your payroll needs can go beyond just processing payments and documentation. Look for a vendor with a range of service offering such as Direct Deposits, Automated Report Production, Retro and off cycle pays, and more. Check if the service provider can offer Employee Self-service to enable employees to access their paystubs and year-end tax documents online.
It would be a good idea to find out how large the company is, how stable are they, have they been around for a while and are they able to take the personal time that you want for your company. Check-out any online reviews the payroll service provider may have. By assigning your campaign to a dedicated Account Manager instead of having your account passed around from person to person, you can be assured of quality work and continuity of service.
When selecting a payroll service provider, find out about the application they use to run payroll. Check if the application is integrated or can integrate with Human Resource Management System (HRIS). Payroll and HR departments complement each other, and an integration enhances overall performance and reduces operation costs. Payroll solutions can also be interfaced to Finance and Accounting applications for seamless flow of information to the GL and advanced reporting.
Make sure that when your company grows, the managed payroll service can accommodate your evolving needs. The vendor should be able to handle simple to complex payroll calculations. Also check if they can make basic payroll information such as Pay Slips, History, and Reports, available online.
Be prepared for the worst-case scenario. Find out if they have a plan if something unforeseeable should happen that would affect your employees getting paid. Another worst-case scenario would be if an error was made, find out the penalties and have it written into the contract. Remember to ask how your company is informed of any changes especially tax changes.
Most SMBs do not need a full-time Payroll Administrator. Managed Payroll service is an ideal solution to meet their needs at an affordable budget. However, cost can differ from one vendor to another. Some vendors can operate on a month-to-month basis while other would need annual commitment. Find out if there are any set-up fees required and are there any hidden fees that can spike-up the cost in near future. Factor in if you are paying by month or pay period. How often you run payroll can impact the cost.
Finding the right service provider is crucial to ensure uninterrupted payroll processing for your business. With the right vendor you can not only ensure smooth payroll operations, but also have the data flow from payroll to other complimentary units such as Human Resources and Accounting. A strategic approach to vendor selection process can yield long-term benefits for the organization.