10 Questions to Ask When Choosing your payroll service provider

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10 Questions to Ask When Choosing Your Payroll
Service Provider
Most organizations are realizing that managing
payroll manually or with in- house teams can
become very cumbersome and is highly error
prone. Several have already taken a smart
decision to have this tedious task managed by a
specialized provider.
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• Here are 10 essential questions to ask when
  choosing the right payroll service provider for
  you
• Is it an End to End payroll service provider?
  Which services are included? Managing payroll is
  not only about processing salaries, but there is
  more to it. Think about statutory compliances,
  employee reimbursements, loans advances, leave
  management, year-end IT related activities like
  proof collection, issuance of form 16 etc.
• It is important that you select a payroll service
  provider who offers end to end payroll.
• How easy is it to migrate to the new payroll
  system/process?
• You are following certain processes. How easy
  does the vendor make it for you to migrate to
  the new payroll process/ system? The migration
  needs to be managed smoothly and seamlessly
  without any loss of data or captured information.
• How secure is the service?
• As you handover your confidential and crucial
  payroll data to payroll vendor you should verify
  and ensure that they use the highest encryption
  standards available.
• Also check that their systems are protected from
  any external threats such as virus, malware or
  hacking and they follow Business Continuity plans
  (BCP) as well as Disaster Recovery plans (DRP)
  to ensure that any calamity does not affect
  business operations of clients
• What are the safety measures/standards taken at
  their data centre?
• The vendors data centres hold your sensitive
  payroll information. As you choose a payroll
  provider, it is really important to know the
  safety standards that the vendor is deploying to
  protect data from break-ins and natural
  disasters.
• The payroll provider should have multiple layers
  of security, including biometric scanning for
  controlled access, entry restrictions at their
  data centres.
• How prompt is their customer support?
• No matter how robust or complete the vendor
  solution is, you will always need some kind of
  support in case of any exceptions or any
  escalations. How easy is it to get to their
  customer support and how responsive and attentive
  are they to meet your exact requirements.
  Typically vendors will offer customer support via
  phone, email, web as well as chat options.

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• How will employees access their payroll data? How
  will HR admins access payroll reports?
• It is important for employees to have anytime
  access to their payroll data and same way for HR
  admins to have access to overall payroll details
  to generate reports.
• The payroll system should have a role based
  access with secure login credentials. Payroll
  service providers usually have a payroll portal
  for employees as well as HR admins.
• Can the vendors payroll solution offer
  integration solutions to standard enterprise
  systems?
• As an organization, you may be using enterprise
  systems like SAP to manage your overall finance
  accounting. How easy is it to integrate data
  from the payroll vendor to this enterprise
  system?
• Can the payroll service scale up to meet business
  needs?
• Over time, your business will grow and so will
  the number of employees. Can your vendor quickly
  scale to meet your requirements?
• Does the vendor offer the flexibility to make a
  tax declaration online
• Most employees prefer to manage their tax
  declarations online. HR organization also prefer
  this as it reduces errors significantly, besides
  offering convenience to employees. Does the
  vendor offer possibilities of managing tax
  declarations online?
• Does the vendor offer you customized reports to
  meet your requirements?
• Apart from standard reports, most businesses look
  for custom reports to meet their requirements.
  Does your vendor offer the flexibility to create
  and provide custom reports for you?

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