When choosing a payroll services provider or PEO, there are several factors you should take into consideration. Before you decide to go with one, it is suggested that you research and interview several providers to ensure your needs and goals will be meet. The same approach should be taken when searching for a PEO or Professional Employer Organization.
Selecting payroll services providers
Before you think about purchasing any payroll software or online services, you should consider the following: the ease of use, turnaround times, and liability. Not all of those programs are user- friendly. This is a very important issue to address because if you ever run into any technical difficulties or end-user questions, you want to make sure the provider you choose offers multiple ways to communicate and will meet you customer service expectations.
Next, you should assess the response time. The speed, at which a payroll service provider can respond to your questions, can be the difference between making payroll or not. Most importantly are the issues of liability and the competence of the customer service department. Make sure that you understand the liability policy in regards to re-issuance of checks, payroll errors, overpayments, etc. Check credentials to verify the provider is bonded this will ensure your company will not fall victim to fraudulent acts or financial mishandling.
Selecting a Professional Employer Organization
It has been said that within the next ten years, more than 50% of American employees will be directly or indirectly employed by PEO. This is in direct correlation with the new business paradigm and the change in human resources.
A PEO assumes liability and responsibility for your company's human resources, payroll, risk management, employment taxes and labor law compliance. The PEO provider you choose will also be in charge of service, sales and marketing, as well as, manages production and product development.
With this being said, the PEO sole purpose is to provide solutions to your ongoing business needs. Once you have joined a PEO, you have placed the responsibility of producing consistent productivity on professionals that will be dedicated to reaching your goals and expectations in all aspects of your business.
Qualities you should look for in your PEO are the following: innovation, motivation, a commitment to attracting and satisfying you current and new client base, an ability to motivate your current employees to achieve their goals and to reach productivity goals.
Keep an eye out for
There are many red flags that will let you know not to use a particular PEO or payroll services provider. Beware of low rates with hidden expensive processing features. Watch for cheap start up cost and waived chargers, in most cases, the rates will begin to go up overtime.