Once you’ve made your payroll outsourcing choice, you need to take all the right steps to set yourself up for success.
Consider timing: It’s easier and cleaner to do payroll outsourcing at the beginning of the year for tax filing purposes, but the switch can be made at the beginning of a quarter or pay period as well.
Work with your dedicated representative on a start date: Decide what’s practical for your business in terms of the time you’ll need to supply all your payroll information and find out how long the conversion will take.
Commence the data dump: You’ll need to provide your new payroll service with the financial and employee information and paperwork they need. They’ll use this data to set up a profile and get you into their payroll software or online payroll system, as well as putting any direct deposit processes in place.
Make sure legal stuff is handled: Consult with your dedicated representative to ensure all the necessary legal paperwork is done (such as a signed power of attorney) as well as any IRS or state forms.
Get your secure credentials set up: Top vendors today safeguard online payroll data using cybersecurity best practices, such as two-factor authentication. But, your payroll vendor should balance the need for security with making it easy for you and your staff to gain access to their system.
Inform and educate your team: Leverage any educational materials or tutorials from your payroll provider to train any employee who may need to use self-service options, and the payroll software or online payroll system. Also, inform your staff of any payroll cycle changes due to the switch, such as a change in pay date (if necessary).
For many small business owners strapped for time, managing payroll through a vendor can be a welcome reprieve. Switching from in-house to a company that does payroll processing for you and handles all those nagging tax and legal issues can be a smart move that helps you get back to what you love: running your business and serving your customers.