How Payroll Outsourcing Works
Are you becoming interested in outsourcing your payroll so that you can spend more quality time running the business that you love? It’s important before you turn over sensitive data to a third party outside your company that you know how payroll outsourcing works and what will be expected from you as the business owner. Let’s take a quick look at the basic things you should know before you start an outsourced payroll programme.
- The first step is to choose a reliable company that you can trust to do this important work for you. Ask some of your colleagues who they use for outsourcing payroll duties and to give you an evaluation of their work performance. Ask plenty of questions and also enquire about a website that you can visit to make some initial evaluations yourself. You can also ask how long they have been outsourcing payroll, if they are pleased with the results they get, and if they have had any problems. Knowing how a team of payroll providers address issues can be an important part in your decision making process.
- Next, you must meet with the company to determine what information they will need to calculate payroll for you. You should also discuss at this time the format that they want to use to set up the data and how they prefer to transfer this information for outsourced payroll. You should discuss the software that you are currently using in your office to capture data and ask for recommendations for upgrades if they know about another programme that would work better for you. One of the most important questions that you can ask is about security. This data is the lifeblood of your company and very sensitive for your employees. Ask the payroll provider about the steps that they take to ensure safety and security when your information changes hands.
- Another important part in outsourcing your payroll is to learn and follow the deadlines that your company will be required to meet so that your employees will receive their payslips on time every time. Outsourced payroll requires that you submit accurate information to your provider within the timeframe that they have given you so that your employees will be paid when they expect to be paid. Keep in mind that your staff members have their weekly, bi-weekly, or monthly budgets based on receipt of their payslips. If you don’t do your job, they will be unhappy and many problems can arise from their displeasure with your payroll programme.
- So that you can meet deadlines and keep everything at your company running smoothly you must be organised. Have files neatly organised, make them easily accessible, and keep them up-to-date at all times. You will have to notify the payroll team of any changes in personnel.