payroll services
Payroll services

6 Decision Factors When Outsourcing Payroll services

Sheri Filippini 


Choosing a company to outsource your payroll services does not have to be a difficult task. Furthermore, several organizations are turning to payroll services companies that have the capacity of giving them services at competitive rates.

The financial factor

The cost is considered one of the most important factors when the decision is made to get one. Different companies offer various rates for their services. Therefore, it is important to determine your budget. While comparing different providers, it is important to make sure they are not demanding extra fees.

Technological factor

You are expecting ease by hiring the services of an online payroll providers. Therefore, it is important to be involved in the process of preparing the payroll. The system must be such that you are allowed to preview the payroll before processing. This will allow you to review the calculations each pay period. The technology employed by the service provider is another factor that needs to be determined. The accounting system they employ should be easy. Furthermore, it should be in a position to deliver the reports real time when the client requests for these reports.

Is the provider up to date on payroll technology? It is hard for the major payroll providers to upgrade a system for hundreds of thousands of users. They will always be slower to change just because of size and inertia. The very small payroll service providers can’t afford the newest technology. You also don’t want bleeding edge technology just leading edge. Currently (and this changes all the time) you want to talk about paperless payroll, online payroll, payroll debit cards and employee self-service. There are other topics that will apply to your unique circumstances. visit  to know about Questions to ask your payroll services.


An efficient payroll service would result in increased company efficiency and productivity. Accuracy and ease of use among other important features should be provided at competitive rates. This allows the organization to process payrolls promptly. The payroll provider should have the necessary experience in handling time-critical payroll processes.


Different providers offer different features. Therefore, a thorough research will help you distinguish one company from another. It is advisable to compare features against the prices charged by different service providers.

Customer support service

Considering that most service providers offer similar features and services, it is important to focus on the quality of the support service. You can consider comparing companies and choosing the one that offers online services 24/7. This will help address payroll concerns when they arise.

Professionalism. How long as the company been in business? Are they a fly-by-night outfit and will disappear with your tax deposits. Do they have to stand in the community? Are they an EFTPS batch filer meaning they have at least 100 clients they file tax deposits for?Do they have qualified payroll professionals and CPAs on staff to handle problems? You will have dealings with the IRS if nothing else over mistakes that the IRS makes.

Tax compliance

You can consider choosing a payroll service provider that offers options to file and pay local, state and federal payroll taxes accurately, in compliance.


There are many companies available in the market that offer various customized services that cater to different customer needs. Considering that processing payrolls is in high demand each pay period, several factors need to be considered before hiring payroll services.

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