Issues to Avoid When Outsourcing Payroll

Small businesses need to focus on revenue generating functions. Unfortunately daily requirements get in the way. As business grows, the time needed to manage payroll increases. When deciding to outsource payroll with a PEO (professional employer organization), ask specific questions about how they handle the technical aspects of payroll.

Q: With new hires, does your payroll system allow for electronic onboarding?

Welcoming new hires with manual paperwork is outdated. Automating that process saves time and ensures there’s no missing information. Ask what type of forms can be automated? Does the technology offer auto-fill options to save time? Will this information automatically sync with payroll? These answers will help you find a system that optimizes how new employee information is collected.

Q: Will my employees have mobile access to payroll related functions?

With the increase of remote employees, mobile functionality is critical. Whether Android or iOS, employees should be able to clock in, clock out, take a break, submit PTO, view their paystubs and set up direct deposit via mobile. Ask them to list all the mobile features and functions. What CANNOT be handled via mobile. You want a system that will be valued by your employees.

Q: Can I approve payroll remotely?

Prompt payroll is a top priority and requires approval whether you’re in the office or not. Will you have access to a secure client portal for off-site approvals of payrolls?

Q: Is your payroll system compatible with my accounting software?

Businesses spend a lot of time finding the right accounting software to meet their business needs. Many PEOs claim their payroll platform will be compatible with your software. What is a typical timeframe for integrating systems? Ask them to outline what they’ll do if they are NOT integrating properly. They should be able to provide examples of successful work-arounds that don’t require extra work on your end.

Many PEOs have an established system in place and rarely offer alternative resolutions. The goal of outsourcing payroll is to save time and hassle. Seamless technical integration and payroll functionality are top priorities for MidwestHR, a leading Illinois PEO. We have a technology team to customize and support our payroll service to meet your needs. Give us a call to discuss how we can help with your payroll.