Five Top Reasons Companies Change Payroll Providers

Wednesday, November 04, 2009

Each year thousands of businesses change their payroll provider. Others don’t realize there is a better alternative and become complacent. Take a few moments and read through some of the reasons for changing to a new payroll provider. Do any of these sound familiar?

1.       Lost in the shuffle. Do you talk to a different person every time you call your payroll service provider? Do you get passed from extension to extension to extension until you end up with voice mail that is not returned? When you call for help do you get a voice mail system and not a person? When you call for help do you reach India? If you can’t talk to live people, who can solve your problems and do it in English, then you are lost in the shuffle.

2.       Service stinks. Payroll service is all about service. If you don’t perceive that your business receives good service then you probably aren’t getting good service. Payroll service providers know that their level of service has to be extremely high. Are you getting what you were promised? Too often salespeople promise what production can’t deliver.

3.       Noncompliance. Do you have confidence that your payroll provider is on top of all applicable federal, state and local laws? Have they adapted to the changing payroll climate and accommodated new laws such as the American Recovery and Reinvestment Act of 2009 (ARRA)? Have you received letters from the IRS, with no assistance in addressing them from your payroll provider? It is important that your payroll provider is versed in all IRS and DOL issues, so you can keep them out of your business!

4.       Technology. Is the provider up-to-date on payroll technology? It is hard for the major payroll providers to upgrade a system for hundreds of thousands of users. They will always be slower to change just because of size and inertia. On the flip side, the very small payroll service providers can’t afford the newest technology. You also don’t want bleeding edge technology, just leading edge. Look for features such paperless payroll, online payroll, employee self-service, time and attendance and others that make payroll simple, direct and secure.

5.       Costs too high. Are you paying more than you should? How can you tell? Have a cost analysis done by a company you can trust.  Remember that the major payroll companies have a revenue maximization process. They will quote you a price to get your business. The salesperson gives you any concession to get the payroll business. Then the corporate office stealthily increases the price every payroll or every few payrolls until it reaches the maximum level of revenue. The other thing a lot of payroll companies do is quote you prices but don’t tell you what is not included in that price. Also, if they give you a “discount” to get your business, it can easily vanish. Be careful of quotes to make sure everything is in them and your price is guaranteed for a period of time. Then check it every pay period to make sure it is what you expect.

If you or your clients are experiencing any of the issues above, maybe it is time to consider changing your payroll provider to Infinisource Payroll. Experience the difference by calling 800-300-3838 or visit www.infinisourcepayroll .com today!