Things To Watch Out For
When choosing a payroll service provider, consider
the following:
- Make sure they provide a high level of customer
service. In particular:
- Will they provide a single point of contact
who is available to deal with any queries on a
day-to-day basis?
- Are they flexible enough to deal with adjustments
after the provision of the initial information?
You do not want a provider who will make a fuss
about every single change you require - flexibility
is the key.
- Look at the adequacy of security procedures regarding
the data held. If the provider is lacking in terms
of Data Protection procedures, you could be held responsible
for your employees data and information.
- Evaluate their ability to create a smooth handover
from your present payroll procedures
- If the service provider's business is primarily
payroll, they need to have a substantial client base
to ensure stability. An ideal provider should support
several hundred clients.
- Since every industry has different processing requirements,
make sure the provider has experience with companies
similar to yours. Check out references if necessary.
Other buying suggestions:
- Negotiate the contract well. There are so many outsourcing
companies now that deals seem easy to make. However,
when writing the contract, think about:
- How will adjustments to the payroll be accommodated?
- Will these changes be included in the price,
or will they be billed on an individual basis?
- If your company is taken to court on some payroll
issue, who is liable? We have all probably had
some experience of an incorrect paycheque, you
need to find out how is held liable for this.
- What is the frequency and type of reports that
will be available? What is the charge for additional
reports?
- For how long will the contract apply? What is
the release negation period should you wish to
either stop the outsourcing or move to another
provider.
- Once the contract is signed, don't assume that everything
will go as planned. Manage the relationship with your
provider by constantly evaluating how satisfied your
internal customers are with the system and providing
feedback to the provider.
- As a precaution, carefully review the first paycheques
issued as well as the money paid to cover taxes
Also check out our Disadvantages
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Payroll
Services Guide
