Outsourcing payroll is crucial to freeing up your time and allowing you to focus on profit-generating activity. This is particularly true in small businesses where resources are already stretched. Done right, outsourced payroll eliminates errors and ensures employee satisfaction. If you choose the wrong provider, however, it can create more problems than solutions.
In this article, we run through five key things you need to consider when choosing a payroll provider so that you can ensure that you avoid this.
What Is A Payroll Provider?
Before getting into what you need to look at in your payroll provider, it is worth defining exactly what a payroll provider is and what their responsibilities are. Put simply, a payroll provider is a company that handles services including and surrounding processing payroll. This will involve calculating employees’ gross pay and creating records, for example. Some will also handle other services such as ensuring tax compliance and employee and service agreements.
How To Choose A Payroll Provider?
1. Decide exactly what you need
The first step to selecting a payroll provider, therefore, is deciding exactly which services you need to outsource. Consider the bandwidth that your existing team has to handle everything payroll-related and look at factors such as how many reports you are likely to need. You’ll then know what to look for whilst you research your options.
2. Consider location
Many payroll providers will handle only one or two countries in their services. This, of course, will not work for the modern, global workforce. If your team is located across several countries, look for a payroll provider that can streamline processes across the world. It will be particularly efficient and effective if they do this through the latest technology, like we do at EWS.
3. Compliance, compliance, compliance
Payroll, tax and other related rules are constantly changing; for this reason, hiring a payroll provider who stays up to date with the latest compliance rules is key. Without investigating whether your payroll supplier is aware of the latest compliance laws, you risk falling into massive legal trouble with GDPR and other legislation.
4. Ensure ease of communication
Another important consideration when choosing a payroll provider is ensuring that you understand exactly how their operations work. Simplicity and ease of communication will ensure that you have someone to turn to if any issues arise.
5. Look at cost and affordability
Of course, a concern for all businesses is keeping costs low. Payroll is most often a very necessary expense, but that doesn’t mean it needs to be expensive.
We ensure that our services maintain the highest quality whilst remaining affordable for growing businesses. We’re your business partner, an extension of your team whilst you scale up.