When it comes to managing payroll and human resources, it’s easy for business owners to become overwhelmed. After all, there’s a lot more involved than just paying employees. Running payroll involves managing time and attendance, making detailed calculations and filing and remitting payroll taxes throughout the year.
Outsourcing payroll to a stand-alone payroll company or professional employer organization (PEO) can relieve small business owners of some of the administrative burdens of payroll. Here are four things to look for in a payroll company.
1. Flexibility and Deep Expertise
Because many aspects of payroll can be complex, find a payroll company that works to simplify the process by providing flexibility and deep expertise. Most payroll software automatically calculates how much employees should be paid each pay period based on their rate of pay. However, not all systems are able to account for complex payrolls with multiple pay rates, shift differentials, holiday pay, overtime, allocations, permissible deductions, garnishments, per diems and non-taxable reimbursements.
Flexibility with various pay types is another important factor of partnering with a payroll company. Some businesses still want to issue paper checks (or even print them remotely), while others utilize digital pay methods such as direct deposit or pay cards.
2. Find a Payroll Company that Stands Behind its Tax Calculations
Tax forms are extremely detailed and required on a frequent basis — two reasons that businesses of all sizes seek assistance in reporting and remitting payroll taxes. Payroll companies provide tax services and handle tasks such as withholding employee taxes, filing quarterly tax reports and remitting tax withholdings to the proper local, state and federal agencies. When tax season rolls around, payroll companies create, distribute and file W-2s for employees or 1099s for independent contractors. Certain payroll service providers will administer W-2s and send them directly to employees, rather than to employers to distribute.
Some payroll and HR outsourcing services take it a step beyond filing payroll taxes and actually take on the responsibility of payroll tax errors — meaning they’ll pay for the cost of correcting the mistake and any fines or interest associated with it. Before choosing a provider, check to see what type of liability it accepts, should an error occur.
3. Efficient Technology with Reporting Capabilities
Look for a payroll company that provides efficient software or technology resources for submitting payroll. A Human Resource Information System (HRIS), for example, goes beyond payroll reporting and allows employers to do things like manage paid time off. Employers can track how many sick or vacation hours employees have earned or used and even approve time off requests.
The HRIS can also help ease the process of on-boarding new employees and enrolling in employee benefits. Employees use it as a self-service portal to do things like view pay stubs, print W-2s at the end of the year, and request time off. No matter the system, the best payroll partners have technology that is easy to use and understand.
Payroll services typically offer clients a way to track specific data with standard and advanced reporting capabilities. Detailed wage and labor reports help employers better understand the way the business operates and identify ways to create efficiency and streamline processes.
4. Payroll Solutions Should Include Client Support
Some payroll companies operate online or run call centers out of other countries, and that can be very complicated when seeking solutions to issues. This is where having a dedicated representative really adds value. Look for a payroll company that provides ongoing support and will answer the phone when you call.
FrankCrum, a Florida-based PEO, has a reputation for providing high service combined with a broad range of HR solutions that include payroll processing, workers’ compensation insurance, employee benefits administration and HR guidance on topics such as wrongful termination, corrective action and wage and hour regulations. FrankCrum becomes an extension of your team. With us, you’ll receive a dedicated Payroll Coordinator and Manager, Client Account Manager and Benefits Account Manager.
To learn more about how FrankCrum can benefit both employers and employees, call 1-800-277-1620.
FAQs
Here are the answers to some frequently asked questions about partnering with FrankCrum.
How is pricing structured?
There are many variables to pricing which necessitate a custom quote. Companies typically realize cost savings compared to the mode they’re in now, and those savings come from different areas. For example, FrankCrum can offer lower workers’ compensation costs to many companies and assist with risk management to improve safety performance. Most of all, we can save clients substantial time by taking on the workload of payroll, HR and benefits administration.
How does the contract work?
The FrankCrum contract has a 12-month term with automatic renewals. When you provide the required termination notice in writing, there is no penalty for ending the contract prior to the expiration of the term.
Are there benefits I can offer my employees that don't require a company contribution?
When you partner with FrankCrum, your employees have a host of voluntary benefits available to them at no cost to you. Those include dental, vision, long and short-term disability, critical illness, cancer policies, flexible spending accounts and more. FrankCrum also offers a 401(k) plan with no setup fees or match required. Your employees can enjoy perks like discounted theme park and movie tickets and access to discounted services for pets.
