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A One-Stop Shop

Payroll service bureaus are increasingly becoming "one-stop shops" for payroll, human resources and benefit administration services. By working with a vendor that features a wide product offering, you can benefit from an easier shopping experience, products that may link or interface with one another and possibly better pricing. In general, many larger, national payroll service bureaus are offering the following services:


- Online pay history
- Payroll cards
- Time/labor tracking
- Direct deposit
- Online W-2
- Garnishments
- Electronic new hire reporting
- HR systems
- HR legal compliance
- Manager self-service
- Employment background checks
- Workers' compensation
- COBRA/HIPAA compliance
- Retirement plans
- Investment products
- Section 125 plans
- Health insurance

What to look for in a vendor: 7 key tips

When shopping for an outsource payroll vendor, keep the following tips in mind:

1. Make sure that payroll and payroll tax filing are the core business of the vendor and not an "Oh by the way" sideline.
   
2. Make sure that the vendor has a history of company and staff expertise in payroll.
   
3. Ask for the level of expertise or professional background/qualifications of the staff that will be dealing directly with the customer and their employees. (Make sure they know payroll, etc.)
   
4. Ask for an estimated annualized fee so that it will force the vendor to divulge any "hidden" or "incidental" fees that may be charged. This will make sure they are comparing apples to apples and not low-balling the price on the front end.
   
5. Ask how many customers the vendor services that are just like them (i.e. size, industry, any special things such as handling union payrolls, etc.) and how long they've been customers on the average.
   
6. Get specific references of current customers as well as customers who have left the service.
   
7. Finally, ask about specifics on response times and support organization structure.

Final words of wisdom

In conclusion, outsourcing is an excellent option for many small and mid-sized businesses. It allows companies to focus on developing business rather than spending more time and extra energy on the non-revenue generating task of payroll. There are many choices in the outsourced payroll industry; shop carefully to make sure the payroll service bureau you choose meets your company's needs and budget.

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By Kathey Palmer


Kathey Palmer is Senior Vice President of Business Development at CompuPay, one of the leading organizations for payroll service for small businesses.