Some key factors and features to look out for in a new payroll provider include:
Cost
If you are using a managed payroll service or payroll outsourcing, then costs usually depend on the size of your team- the bigger your team, the higher the cost of the service. Costs also depend on whether you will be using a fully-managed payroll service or a part-managed service.
Have a chat with your preferred payroll providers and ask them for a ballpark figure on costs based on the size of your team: this should give you a good idea of which providers are value for money, and will help you budget for when you switch. You can ask the payroll provider to give you a rough cost per payslip, or average monthly cost to cover the whole team.
Experience
Payroll is such an important part of your business- it’s vital that your new payroll provider is professional and experienced in what they do. Look for payroll outsourcing services which are delivered by a team of expert consultants who are CIPP accredited and experienced in the full end-to-end process. A good managed payroll provider will do more than just ‘handling your payroll’. Instead, they will take the time to understand your business, what you do and what you need now and in the future.
Simplicity
As a business owner, you already have enough plates to spin without having to get to grips with an unnecessarily complex payroll process. If you’re considering a new payroll provider but their processes seem complex, it’s probably a red flag.
Choosing a provider who offers an easy-to-use payroll system will make setup time much shorter, so you can get started quickly and adapt to using the system easily.
Customer Service
One of the primary blockers to businesses switching their payroll provider is that it feels like a daunting task to undertake without support. This is why when you’re looking for a new payroll provider, customer service and support should be at the top of your list.
Only consider switching to a new provider who can help you make the switch, and ensure a smooth transition. Your new managed payroll provider should be able to help you with initial setup, training, data entry, onboarding, and general support.
Flexibility
Look for a managed payroll provider who can fit the unique needs of your company. No one solution fits every business, which is why it’s good to look for a provider who can take on as much, or as little, of your payroll as suits you. Perhaps you require support for your in-house team with month-end processes, or maybe you need a fully managed payroll service. Look for a flexible payroll provider who can accommodate your needs.
Understanding your existing software
When switching payroll providers, it is pertinent to choose a new payroll service who understands integration with existing software. Using a payroll provider who can ensure that your new payroll process complements your existing accounting software will save you time and money.
Tax compliance
Payroll tax compliance rules are constantly changing- for example, all tax records and returns now need to be ‘Making Tax Digital’-compliant.
It’s now more important than ever to choose a provider who is tax compliant.
Because payroll impacts taxes and workplace benefits, choosing a supplier who isn’t tax compliant or who makes filing errors can result in fines from HMRC.
Learn the key factors to consider in a new payroll provider in our downloadable guide.
