Thinking about Outsourcing Payroll Function? How Will You Choose a Payroll Service Provider?
Concurrent market dynamics and frequent market downturns make it necessary for employers to focus solely on their core business activities and outsource their back office activities including payroll function and related tax duties to offshore payroll solutions providers. These outsourcing service providers, with their expertise and experience, assure to meet filling and deposit deadlines to greatly streamline overall business operations. Let’s not forget that come what may, it is the employer who is held responsible for the non- payment of income tax, and also for employee and employer contribution towards social security and Medicare taxes. So now as a business owner, you are left with two choices, either you take the DIY – Do It Yourself approach or you can hire a payroll service provider to do it for you. Lack of skills and time when it comes to accounting and payroll tax laws, leaves you with only one choice, payroll service provider; and it works as the best option for you. Now that you have made up your mind to outsource your payroll services, you would really want to be sure of making the right choice. It is so because payroll outsourcing is one of those most important decisions and if it can have positive, can have negative impact as well on your business. Worse scenario is where you might have to switch over the service provider mid-way. It has to be one of those decisions with longevity, for you and your business. Price comparison is not the only thing that should be looked at, instead pay attention to due diligence to ensure that you are making the right choice.
Communication channels and POCs The list of payroll outsourcing service providers working on number game, enrolling maximum customers, is too long. So it is better to find out and assess how the service delivery and most importantly, upon entering into an agreement, how is the account management structured, who all would be your POCs- Point of Contacts, who actually will be executing your work from where, and of course which all are your points of escalation. If you have that passage of communication to appropriate stakeholders, good for you as it is critical to a problem free delivery of services. Offshore company adheres to highest standards of accuracy What’s the use of tying up with an outsourced payroll service provider company, if the time theoretically saved by outsourcing is then to be invested in checking and amending the work done by the outsourced partner. Payroll is the process with least tolerance to frequent mistakes and delays. It is essential that the offshore company follows to elevated standards of accuracy. i.e. if the client is looking out to get the entire payroll through BCAS within deadlines, a good payroll outsourcing service provider will proactively identify irregularities in the data shared and actively participate in resolving those issues.
Do they provide you an account manager for your payroll process?
Routine management of your payroll process will need frequent and two way communication and you will eventually build it over a time period, a close working professional relationship with your payroll manager in the outsourced team. But as we all know and realize at some point of time, that these close relationships at times become a barrier in having frank discussions about performance or chances to the services, hand in hand with the business changes. These discussions need a separate person with a completely different mindset, who is also accountable for the business side of the relationships and not the one looking after routine payroll operations. It is the account manager, but unfortunately that role is often missing in several outsourced companies in order to cut costs. But ensure that you are assigned with one account manager who addresses all your business needs. Is the outsourcing payroll service provider experienced enough to handle business complexities like the one that you have? Before taking the leap it is advisable to thoroughly understand if the company that you are outsourcing your payroll process is experienced to run a payroll similar to your own. You may want to prepare a list of variety that you payroll consists of including weekly pay, multiple locations, varying points of contact, part time, zero hours, remote workers, bonus payments and much more. Now try and figure out mutually with the service provider if they will be able to manage all these or not. Next important thing is that, you also need to see to it that the payroll service provider does not miss out on the bigger picture while managing these variations. Remember, it is the complexity of payrolls and the ability to tackle them is what decides the suitability of a service provider. So how about taking a moment and ask aforementioned questions before you choose a payroll service provider? This original article was published on https://www.linkedin.com/pulse/thinking-outsourcing-payroll-function-how-you-choose-service-vaibhav
