Problems with Outsourcing Payroll:
If you’re considering outsourcing your payroll and have done all of the research, you’ve probably read about some problems companies have with their payroll provider.
This article will address all of the top concerns with outsourcing your payroll, as well as how to prevent any of these problems happening to you.
Is outsourcing payroll going to cost me more?
Generally, you can expect to pay around $150-$200 per employee for the entire year when you outsource your payroll. Now, compare this to the midpoint salary to hire an in-house payroll processor at your company, which averages a $40,206 annual salary.
There may also be additional costs with outsourcing your payroll depending on what extra services you may need. For example, at Superior Trucking Payroll Service, we include tax filing and direct deposit in our base price but other companies may charge extra.
Other additional services we include with our payroll package are quarterly and year-end reporting, check stuffing and sealing and more depending on the client.
We do charge an extra fee for next-day pay submission, which ranges from 50% to 100% of the payroll service fee, depending on when the pay data was submitted.
Is it going to take longer to communicate payroll changes?
With outsourcing, you’ll need to plan ahead in order to meet the strict deadlines set by your payroll company so that they can turn around and process payroll on time. That means taking into account things like holidays, your payroll account manager being out of the office, weather, or even glitches in your technology that impact data transfers.
If you’re like some businesses, especially if you only have time to focus on the payroll after hours, you may worry that the time gap between when you send something over to your vendor and when they receive it could lead to delays in payment to your employees.
To ensure that there are no delays in your payroll you can create a schedule, or opt for payment options other than paper checks. At Superior Trucking Payroll Service, most of our clients’ employees prefer direct deposit for their funds.
How will I know if our systems will be compatible?
We understand the need for seamless integration and always work with our clients to ensure a smooth implementation. If you’re worried about your transportation management system not integrating with our payroll processes, you can transition to using AscendTMS. We have partnered with one of the best and most well-known transportation management systems to create a perfect match. AscendTMS uses a world-class 100% cloud-based TMS software where you can manage every aspect of your trucking and logistics operations.
To read more about our partnership, and learn how to get a discount with either our payroll services or AscendTMS, check out this link.
How will I know that my data is secure?
With the number of headline-making security breaches in recent years, it’s not surprising to worry about placing sensitive employee data in someone else’s hands. We understand your fear, and even though incidents like this are extremely rare, they can still cause some companies to keep payroll in-house.
Before sighing up with an outsourced payroll provider, we suggest you ask them a few questions to be sure that they are reputable and have policies and procedures in place to protect your data.
Where is the data hosted?
Who can access the data?
How is the data backed up, stored, and transmitted?
In the unlikely event of a breach, what are the protocols?
What happens if the payroll company goes out of business?
While it is unlikely that a payroll company will go out of business, it can, and has happened in the past. So what can you do as a trucking company owner to ensure that non of your direct deposits disappear?
A well-known provider with a tried and tested operating history is the most important thing to look for. A good way to do this is to check with industry professionals, research reviews and referrals, or even business and industry news outlets.
We know that there are concerns with outsourcing payroll, which is why we want to be as transparent as possible without clients and future clients. At Superior Trucking Payroll Service we are constantly learning and improving in order to make your life easier by taking payroll off of your plate. After all, our goal is to help trucking families, and that’s you!
Harley joined Superior Trucking Payroll Service (STPS) in early 2019. With nine years of customer service experience, she truly understands what it takes to make our clients happy. She loves working at STPS because of the family-like atmosphere. Harley’s favorite place to be is Traverse City, Michigan or anywhere that has hippos.
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