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Examine their customer support
Payroll can be a complex, time-consuming process — especially if you have employees in multiple locations. There are multiple laws to comply with, tax edicts to follow, and a lot of data to manage. Companies experienced in arranging outsourcing contracts with third-party entities can rely on past experience for guidance. For companies newer to outsourcing, however, it’s worth taking plenty of time to select the right provider and to make sure all other aspects of an arrangement check out. According to Technavio, the payroll outsourcing services market is estimated to grow nearly 6% by 2027.
As another major player in the HR and payroll space, ADP’s offerings are narrower in focus than Rippling’s, but they gain in depth what they lose in breadth. Known throughout the industry for their enterprise-grade services in HR support, ADP offers what is a good cap rate for an investment property solutions to businesses ranging in size from one to over one thousand employees, all with the same level of functionality. Business activities like running payroll are, obviously, a bit more involved and sensitive than, say, having someone run your personal mail to the post office. That said, at a fundamental level, outsourcing payroll or leveraging HR software solutions are in many ways the same as hiring someone to do your yardwork. In today’s digital age, data is currency, and keeping sensitive employee information confidential and financial details shielded from potential cyber breaches is a vital aspect of doing business.
So, be sure to let your team in on the new payroll outsourcing plan, address concerns, answer questions, and assure them that their payday plans and priorities are in safe hands. You can even give them advanced access to the employee self-service portal so they can check it out and get involved by inputting/checking all of their details and preferences. Find out, in detail, what kinds of security measures they have in place, including official security certifications and protocols. If possible, consult with your own in-house security experts (or, if you’re unsure, ask an independent security expert).
Is it common to outsource payroll?
Mistakes involving taxes or adherence to regulations can be time-consuming and costly to resolve, so there’s a strong incentive to get everything right the first time. “Leaving it to the pros” can be especially beneficial for large companies with complex and burdensome payroll responsibilities. Not only does this imply greater overall experience with matters of payroll, but it also means that the third-party provider should have effective management systems in place for the full range of payroll functions. They likely use employees with task-specific training and have all the necessary software on hand.
Bambee: Best for compliance management
A reliable payroll partner will provide your employees with self-service portals, which enable them to check their pay stubs, keep an eye on their benefits, and tweak their tax details if applicable. When you outsource, you gain access to local experts who know their jurisdiction and are on top of any potential legislative changes. With a one-stop solution like Remote, you don’t need to partner with multiple providers, either.
Laura loves to write about managing your money, navigating your career, and running a successful business. Her work has been featured in Forbes, LendingTree, Rocket Mortgage, The Balance, and many other publications. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
Key features of payroll solutions
- By outsourcing all that work to a payroll provider, you save an invaluable amount of time and resources — especially if you’re a small business.
- And when you add new jurisdictions, you multiply the level of complexity of each payroll run.
- Choose an efficient payroll management solution like Remote and avoid any major issues.
- That way, a small business is getting the best of both worlds, allowing them to selectively decide what aspects of payroll they do themselves and which they’d rather have done by the experts.
- To mitigate this, it’s important to build a positive relationship and find a clear way to talk to each other.
Payroll outsourcing costs generally depend indirect cost definition and meaning on payroll frequency, total number of employees and the specific services that are being outsourced. In most cases, there is a per-payroll processing fee and an annual base fee. ADP works with employers to determine the right payroll setup for their business, whether it’s a start-up company or an international enterprise.