10 Questions to Ask When Choosing

Your Payroll Service Provider

Most organizations are realizing that managing payroll manually or with inhouse 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.

Here are 10 essential questions to ask when choosing the right

payroll service provider for you:
1. 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.
2. 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.
3. 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
4. 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.
5. 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.

6. 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.
7. 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?
8. 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?
9. 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?
10. 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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