How to Compare Payroll Companies
Hiring a company to handle your payroll saves you time and money according to Inc. However, choosing a payroll company requires a thorough assessment of your needs and finding a company that understands your line of business.
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Experience
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Comparing payroll companies requires reviewing the manager's, or owner's credentials. Compare education, training and past experience. Request a list of certifications, such as payroll tax preparation and filing, held by the payroll company. Ask how long the service has been in operation.
Cost
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Compare costs when searching for a payroll company. A price list provides you with the company's current rates. Ask how the payroll company receives and sends your payroll your information. For instance, electronic transmission may cost less than fax or hand delivery. Also, ask what the charge for weekly and bi-weekly paychecks is when comparing costs.
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Services
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Compare the services provided by the payroll companies. Start by making a list of services your company needs. For instance, if your company has a cafeteria plan or a flexible spending account (FSA), make sure the services are available. Consider the future growth of your company when determining services you need as well. Use the number of full-time and part-time employees, along with any other type of laborers, and the type of payroll benefits, such as 401(k), to compare services. Also, review the state and federal tax services offered by the payroll companies.
Insurance
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Request a certificate of insurance from payroll companies you are considering. This provides you with the amount of coverage per incident and the protection provided by the company should you suffer a financial loss. For example, if the company is hacked and your business information is breached, determine how you will be compensated.
References
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Talk to other businesses in your area that are similar to yours. Request guidance from the human resourced department or chief financial officer (CFO) when comparing payroll services.
Contact your CPA or attorney and determine which payroll service works best for your company's needs. Have them review the information you collect and offer their personal reference.
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