February 12, 2021

9 Questions to Ask before choosing the right Payroll service provider

The manual payroll system in Australia is full of challenges. That makes this system of payroll is prone to error, is repetitive, and a slow process. The HR and accounting department of a company has numerous things to look after. From work ethics to complaints, to hiring new people, budgeting, and more. Since payroll is a complicated process, a tiny mistake can cost you a huge loss. Thus, the traditional payroll system is ebbing away and giving rise to payroll solutions. Some companies offer payroll solutions like Aurion, which can have numerous benefits for your business, like:

  • You do not have to worry about logistics related to payroll. The solution provided by such companies handles it all.
  •  It reduces costs and decreases the percentage of errors
  • It saves time, especially for small startups who waste hours sorting through employee records and payroll
  • They design the payroll system keeping in mind your business. Thus, no extra efforts are required on your behalf to ensure that people adhere to the rules and guidelines

These are some significant benefits of switching to a payroll system. If you are looking to minimize payroll errors for your business, you should consider this change. But it is a massive switch for any business and knowing whether your payroll solution provider is the right fit for you or not is imperative. To know that, you need to ask them a few questions which will help you assess whether you both can work with each other or not.

Here are a few questions to ask your payroll service provider before hiring them.

Ques 1: What specific services regarding payroll do you offer?

The number of payroll service providers is increasing day by day. To find a service provider that works well with your company, the first thing you need to do is to identify the specific requirement regarding payroll you have. The search for the vendor will become easy if you are aware of your requirements.

Then ask the service provider what they are offering, and start making a pro and cons list. Most reputable payroll service providers like Aurion provide automated payroll services. They can also customize it per your needs. When looking for a payroll service provider, make sure they deliver these services:

  • Handle recruits
  • Pay salary and contract to employees using direct deposit
  • Have a grip on numerous deductions and earnings, like commission, garnishment, or tips.
  • Deduct benefits, like insurance and health
  • File payroll taxes

These are the basic services that they should provide. There could be more depending upon the provider’s policy.

Ques 2: How will you deliver the payroll to us? The cost of the delivery?

If you are depositing the payment electronically for all, do we have to pay charges for it? If sending checks by mail, what is the cost of the same?

Ques 3: Is there a free trial? What is the price structure?

Ask the payroll service provider if they offer free trials ranging from a month to two. It lets you test their services and your compatibility level. Depending upon your region, the price and fee structure may vary. Though, most payroll service providers offer a monthly subscription and customizing services also affects your final invoice.

Ensure that you get a proper rundown on how they bill each service and how they will send the same to you? Talking about billing before is imperative to ensure there are no problems later.

Ques 4: Do your services increase to meet business needs?

As your business grows, you will hire more employees and scale up your HR department. That may require you to change your payroll structure a bit. Therefore, it is best to ask the service provider if they will meet these new demands and what is the process for the same?

Ques 5: Who can you contact in case of questions or concerns?

Payroll is a massive part of your business as it impacts your finances. If there are any doubts, questions, or concerns in your mind regarding the payroll process at any time, you need to have a way to contact the service provider. Thus, ensure that the company has an excellent customer service department that can guide you towards the right people and ease your mind from worries.

Ques 6: How do they secure your data?

A payroll service provider is in-charge of tons of sensitive data regarding your finances and more. It is necessary to question them about their security measures and how they protect their data centers?

Most companies have the highest security measures that include retina scans, biometric scans, limited access, and more. Also, security personnel monitoring every level with cameras is part of their security structure as well. Make sure that they have the best encryption system and use the latest security models.

Ques 7: Can you change payroll data in case of errors?

Several times due to human error, the payroll data you submit can have errors and may need changes. Ask the service provider if there is any processing delay that gives you time to change data if you need to.

Another question that goes in hand with this is whether you will be assigned a new person every time or deal with the same person? It is imperative to ask as it lets you resolve questions or queries quickly if you are dealing with one person.

Ques 8: What about processing tax?

The payroll service provider can process federal and state income tax deductions. Though, if you are in a region having different tax regulations, it is necessary to ask your payroll provider if they can process them as well?

Ques 9: Ask about their clients?

You must know who their previous clients are? Some of these companies must be known to you, and you can get personal feedback and reviews about the service provider from them.

Lastly, ask them, in case of any mistakes on their behalf, how will they compensate?

These questions will help you find and outsource work to a payroll service provider that can ease your paperwork, save time, and manage payroll responsibilities in the best possible way. They should also know the latest trend, rules, and tax regulations to keep you on the straight and narrow.

About the author 

Peter Hatch

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