If you’re researching which payroll solution is right for your business this is where you want to start. From payroll software, all-in-one HR software, payroll services, in-house staff, payroll processors, or professional employer organizations, when it comes to payroll solutions, you’re not short on options.
In our newest eBook, Payroll Solutions: Finding the Best Fit, you’ll find a round-up of the six most common and why they may or may not be the best fit for your company.
We will be posting individual sections of this eBook here on our blog, starting a few weeks ago with our sections on payroll software, all-in-one HR software, Finance Professionals, and In-House Payroll, and continuing today with our section on Payroll Processing!
If you would like to see the whole thing, you can read it here, and even download it as a free PDF!
The Comp and Check Model: When we say a “comp and check solution” we are talking about when a business owner chooses to work with multiple vendors, like a basic payroll service from a payroll provider, a pay-as-you-go work comp policy from an insurance company, and other benefits from yet another separate benefits provider or benefits broker.
The comp and check model has an attractive sticker price. But, we often see business owners attracted to this model because of a low upfront cost, and then get disappointed when they discover that they will be nickel-and-dimed for a bunch of other services they need throughout the year. When doing a price comparison, make sure you factor in all costs and savings for all the additional services you may need during the year, not just the upfront costs.
The comp and check model is great at getting payroll processing and related tasks off your plate to allow you to focus on your business.
Payroll processing vendors make payroll quick and simple. And, when it comes to pay as you go work comp carriers, there will not be additional premium pay-out surprises at the end of year based on miscalculated premium from payroll. The cost is regulated on a per-payroll basis. The premium raises and lowers throughout the year according to the current payroll. This helps prevent surprises at end of year and cashflow issues.
The “HR packages” that are offered by these payroll vendors vary greatly, so be careful to understand what exactly they will and will not be taking care of and if there are additional fees for certain forms and services. This model leaves quite a few administrative tasks related to employees to be handled by you or covered with additional charges. And, instead of just dealing with one vendor for payroll, work comp, HR, and benefits you will still have to deal with managing multiple. Again, taking more of your time and focus that could be spent on profit producing tasks.
Who Payroll Processing is Great For
- Budget-focused businesses who wants payroll to require as little time as possible from in-house staff.
- Companies who do not mind working with multiple vendors for benefits, payroll, and work comp, etc.
- Business owners with the experience and expertise with these providers to navigate the potentially extraneous services offered in order to find the best solution for them without being caught with hidden charges.
- Companies with 5-500 employees.
Who Payroll Processing is Not Great For
- A company with a tight budget.
- A small business owner with the financial expertise and experience to integrate payroll and their other financial needs.
- Someone specifically looking for a payroll solution, without the other financial services these professionals specialize in.
- A company with more than 50 employees.