What to Expect from a Payroll Provider
What to Expect from a Payroll Provider

What to Expect from a Payroll Provider

More and more organizations are choosing to outsource the payroll function in order to save time, be more compliant and reduce the risk of errors. But for many, outsourcing for the first time can be a challenging process. Businesses are often uncertain of what to expect and what their responsibilities will be.

What is the provider’s responsibility to me?

On the most basic level, payroll companies can be expected to provide the following services:

* Cutting checks and initiating direct deposit payments
* Managing new hire filing
* Calculating and paying taxes
* Assuming payroll tax liability (except in the case of client error)
* Preparing tax returns
* Performing reconciliations

In addition to these, exceptional payroll companies will provide:

* Easy-to-use, web-based software for payroll management and HR administration
* Thorough implementation and testing of the new system to ensure it suits your needs
* Interactive online and/or in-person training sessions
* Personalized client service (not call centers or automated messages)
* Assistance with compliance matters
* Efficiency gains and cost savings through better, more streamlined processes
* Ongoing updates to the software based on user feedback
* Continuing education and thought leadership on top industry issues

What is my responsibility to the provider?

Service providers can only do so much—as a client, you will have responsibilities to them as well. For instance, how can a payroll company generate an accurate W-2 if an employee’s Social Security number was entered into the system incorrectly? You will get more out of your relationship with the provider if you take the following responsibilities to heart. As a client, you will be expected to:

* Take the time to learn the solutions using the training materials provided
* Provide reports and information for setup and implementation
* Train employees on the new system, if applicable
* Enter accurate information into the system
* Report hours and payments accurately
* Enter new hires into the system
* Disburse checks and reports to appropriate individuals
* Provide accurate and correct tax information when needed
* Be responsive if questions arise

If you take your responsibilities as a client seriously, your organization will reap the benefits. Likewise, your provider should take their responsibilities just as seriously—if they do not, it may be time to find a provider that will.

Have more questions about what to look for in an HR and payroll provider? Download this buyer’s guide to learn about the most important criteria, and you will feel confident in your knowledge as you go through this process.

More to Discover

Is Your Time and Attendance Solution Delivering Results?

Is Your Time and Attendance Solution Delivering Results?

Not all time and attendance solutions are created equal. Perhaps you’re manually keeping track of time cards or your automated time and attendance system isn’t living up to your expectations. Either way, it might be time to make a change. Modern time and attendance software should deliver results—mainly savings and accuracy—for any human resources department. Accurate Time Tracking Leads To Labor Cost Savings In any organization, employees usually are both the largest expense and the largest asset. Maintaining control of labor costs is critical to the overall bottom line and it all starts with accurate time tracking. According to the American Payroll Association (APA), organizations can experience anywhere between a 1% and 7% clerical...

Labor Law Updates

Labor Law Updates

What are the latest NLRA rules and modifications employers need to know? Join us as we discuss the most noteworthy changes of labor law within the Trump era. Speaker: Justin Flamm As co-chair of Taft’s Employment practice, Justin handles a wide range of labor and employment matters. His experience includes lawsuits and administrative charges involving race, sex, age, disability and religious discrimination; wage and hour matters under the Fair Labor Standards Act; employee handbooks and workplace policies: and other issues relating to employment relationships.

2019 Social Security Taxable Wage Base

2019 Social Security Taxable Wage Base

Both employees and employers have to pay social security tax and split the total amount due for each employee. Currently, the social security tax withholding rate is 6.2% for both employees and employers. For those self-employed, the rate is 12.4% because they have no employer to split the tax. However, the Old Age, Survivors and Disability Insurance (OASDI) program sets a limit on how much of an employee’s income can be taxed in a given year. This limit changes each year and is based on the average wage index. The Social Security Wage Base is the maximum gross income on which Social Security tax can be imposed on an employee.The limit is $132,900 for 2019, meaning any income you make over $132,900 will not be subject to social security...

The Turnover Crisis in Restaurants

The Turnover Crisis in Restaurants

An Action Plan for Owners and Operators Restaurants across the country are experiencing high volumes of turnover at an alarming rate. In 2016, turnover exceeded 70% for the second consecutive year, and the turnover rate in the fast-food industry reached 150%, the highest since data was first captured in 1995*. With record numbers of restaurants and more jobs to choose from, employees are willing to take risks to find the right fit. The demand for restaurant workers isn’t going away, so it’s critical to find the right HCM provider who can help solve your HR challenges with the right combination of technology and expertise. More than 3,000 restaurants across the country depend on Paycor to help onboard new hires, pay them accurately and...