Outsourcing Payroll: Shopping Tips for Merchants
By Mark Strippy, Executive Director, Payroll ServicesHeartland Payment Systems
With the end of the year approaching, you may be thinking about tax reporting, year-end calculations or payroll planning — and the to-do lists associated with each of them. You may even be considering outsourcing your payroll, since keeping track of employees who have had life changes — such as marriage, divorce or a change in the number of dependants — as well as distributing, collecting and recording forms can be time-consuming and complicated. Here are tips to consider if you’re thinking about outsourcing your payroll.
- Do your homework. If you’re part of a business or community organization — such as a chamber of commerce or trade association — ask other members if they use a payroll service provider. If so, find out what services they receive and if their provider meets their needs.
- Determine your business needs. Consult your payroll manager, human resources department, accounting personnel and IT staff to understand the functionalities they need.
- Evaluate features and benefits. Meet with several payroll service providers to determine how they work. Don’t "shop" based on price alone. Be sure they can provide all the services you need. For example, you might need help with 401(k) or worker’s compensation so be sure your chosen provider can handle those services as well as basic payroll.
- Compare costs. Many processors nickel and dime you. For example, they charge for additions or deletions of employees, while others offer fixed rates for the length of the contract without incremental fees.
- Look for a payroll services provider that guarantees confidentiality and information security. For example, there are different payroll submission methods — such as by phone, fax, e-mail or completely electronic — so be sure you’re comfortable with how you transmit your data. You’ll want to work with payroll services provider that protects your employees’ data.
- Check if the payroll services provider can assume your tax filing responsibility. The payroll service provider should prepare your company’s quarterly and annual employee tax filing and assume liability for accurate and timely submission*.
- Be sure the payroll products and services are user-friendly. In addition to making sure the program is easy to use, investigate what type of support is available such as a help desk and professionals who can help with program troubleshooting. Ideally, your payroll services providers should offer 24/7/365 support.
Following these tips can help you choose a payroll services provider and alleviate your payroll and tax filing burdens. Be sure to work with a company with experience in the payroll industry — such as Heartland Payment Systems — so you can run your business without worrying about your payroll.
*A payroll services provider can assume responsibility and liability based on accurate numbers and reporting information from the client/business.
Mark Strippy is executive director of Heartland Payroll Services. To learn more about outsourcing your payroll, contact us at 877.729.2968 Extension 4400.
Heartland, a NYSE company trading under the symbol HPY, delivers credit/debit/prepaid card processing, payroll, check management and payment solutions to more than 250,000 business locations nationwide.
Heartland is the founding supporter of The Merchant Bill of Rights, a public advocacy initiative that educates merchants about fair credit and debit card processing practices. For more information, contact Heartland Payment Systems at 866.941.1HPS (1477) or visit www.HeartlandPaymentSystems.com and www.MerchantBillOfRights.com.