Considering a payroll service? 6 questions to ask

Outsourcing payroll to an experienced provider can save business owners time, money, and hassle. Penalties related to employment tax errors totaled nearly $7 billion in 2017, according to IRS figures. What’s more, around one-third of employers make these errors. Keeping up with changing requirements and managing tax forms also eats up valuable hours that could be spent on core business tasks.

Whether you’re considering outsourcing payroll for the first time or switching from a current provider, it’s important to be sure the service you choose meets your business’s needs. Ask these questions of any provider you’re considering:

1. How long have you been in business? Find out about the company’s track record — how long has it been providing payroll services, and how long do clients typically stay? How much experience does it have with your type of business and industry? Given the complexities of payroll, working with a well-established provider can offer peace of mind.
2. How easy is the service to use? Will you be able to manage payroll in the way that you prefer? For some companies, this could mean calling in payroll. Others might prefer to do this online. Ask providers how the payroll submission process works from start to finish. Consider other features that impact ease of use, such as access for employees or to a mobile app.
3. Are there extra fees for the features I use most? Payroll services vary in terms of what the base price covers. Be sure you understand what’s included. For instance, are there additional costs for direct deposit, W2s, or 1099s? Think of the features you’ll rely on most so that there are no surprises. What data safeguards are in place? Ask about the measures the company takes to protect personally identifiable information, such as employee names, addresses, and social security numbers. Find out about employee screening and access to confidential information. Also ask how payroll information would be recovered in the event of a data outage.
4. How easily can you accommodate growth? Find out how easy it will be to add new employees should your business expand. If opening locations in other states is a possibility, ask how easily the service could accommodate that. If you think your needs might expand beyond payroll, ask about other services the provider may offer, such as time and attendance tracking, onboarding assistance, HR consulting, or workers compensation insurance.
5. How responsive is customer service? How easy will it be to get answers to questions or to troubleshoot problems? How is support provided — e.g., through phone or online chat? Does the service offer the option of a dedicated account manager, if that’s important to you? Given the essential role that payroll plays in your company, you’ll want to be sure that help is available when you need it.

More information

Learn how Citizens can help streamline payroll processing and tax compliance. We offer two convenient options through our trusted payroll partners so you can find the one that best meets your needs. To get started, call 1-800-428-7463, fill out our online form, or stop by your nearest Citizens branch.