Let’s face it: Payroll hasn’t gotten any easier in recent years. The worldwide pandemic of 2020 ushered in an uncertain economy and an endless amount of new rules and regulations connected to necessary programs like the Paycheck Protection Program (PPP).
Payroll is more complex today than ever.
Yet, while payroll management services may be needed now more than ever before, not all of them are the same. In this article, we’re going to pull back the curtain and show you the honest truth about payroll management services so you can determine whether or not the benefits justify the price. We’ll also provide you with a top-five list of some of our favorite payroll management providers so you can make an informed decision that’s right for your business.
Before we go on, let’s first answer a simple question: What are outsourced payroll management services? Outsourced payroll management services provide your business with streamlined, effective, and compliant payroll processes.
Rather than struggling to manage your small business payroll in-house, an outsourced payroll management service will allow a third-party or partner organization to act as your company’s payroll department, freeing you up to take on more critical tasks for your business.
It’s important to mention here that ConnectPay is an outsourced payroll management service. So, our opinion may be a little biased. However, we see companies struggling with payroll on a daily basis. That’s why we genuinely believe payroll services are worth the investment.
Let’s dive into the benefits and features of outsourced payroll management services.
There are a lot of benefits when outsourcing to a payroll management service. It is important to note that not every payroll management service offers all the benefits we’ll list here, but a few of the benefits ConnectPay’s services offer include:
We’ve discovered that the value an outsourced payroll management service brings to your business largely depends on two questions:
What do the “right things” in payroll management services entail? Let’s take a look at a few charges and fees you’ll want to avoid when working with an outsourced payroll management service.
Overpaying for a bunch of resources and services you don’t need is one thing. Not getting what you pay for is another.
When you hire an outsourced payroll management service, you should receive service in exchange for the cost. It seems simple, but it’s not always that cut-and-dry. There are many ways we see companies failing to get the service they pay for, and for most of them, it’s a terrible frustration - and rightly so!
Customer support may not be top of mind when you’re searching for an outsourced payroll management service, but it should be. When something goes wrong, the quality of customer support is all that matters. Period.
Here are some real-life stories:
We hear these stories all the time, which is why we ensure our clients never reach voicemail during business hours. We have embraced this “no voicemail rule,” and our clients love it.
Whenever there is a timely need, being able to call up and get your rep on the phone immediately is not just valuable for peace of mind, but it helps solve your problems faster so you can get back to work.
Our clients call when:
According to the IRS, more than a third of SMBs incur a payroll-related tax penalty every year. The average penalty is more than $800. If your outsourced payroll management service is sloppy, the likelihood of getting a tax penalty or fee notice is very high.
If you’re paying a professional to handle your payroll, you shouldn’t have to worry about them doing it wrong. Their mistakes should not fall on your shoulders to correct, and you should never play endless phone tag to get a tax notice or penalty resolved.
At ConnectPay, for example, we give our clients a 'no tax penalty or fee guarantee.' We take responsibility for our payroll work. And we guarantee that, if we ever do make an error, we incur the penalty and fee for that error, not the client.
There are two main thrusts of great payroll service support:
Large enterprises have so many locations and companies within companies that their payroll services are often massive databases of providers working together as a small army to handle payroll.
Small businesses, on the other hand, need a different kind of service. They need to be able to put a face to the name of their representative and build a trust-based relationship with that person over time.
At ConnectPay, we believe in relationships, not call centers and databases. We build relationships with our clients, but we also build relationships with business partners.
For example, when a client needs service or has an issue outside of our wheelhouse, we can connect them with trusted CPAs, bookkeepers, brokers, and the like, within their own community. And because we have close relationships with these providers, we know they have our customer’s best interests at heart.
We’ve discussed some of the advantages and features of payroll management services in general, but as we said early on in this post: Not all payroll providers are created equal. Let’s take a look at five payroll management services we think offer incredible value.
Rippling offers a number of HR and compliance solutions, one of which is payroll. Rippling’s solution offers features like hour and PTO tracking, advanced reporting, and advanced integrations with tools like QuickBooks, Xero, and more.
Pricing starts at $8/month per user, but the cost can vary depending on the services you need for your business.
Gusto’s payroll solution is designed to be heavily automated and easy to use. Gusto offers features like automated payroll tax filing, compliance-checking, workers’ compensation calculations, and more.
Gusto lists several packages on their website, but for their basic package, pricing starts at $30/month plus $6/month per user.
ADP is one of the giants in the outsourced payroll management industry. ADP’s solution has self-service options for employees, advanced integrations with HR systems and ERPs, and is a good fit for large businesses and enterprises.
ADP’s pricing is only available upon request, but they offer four different packages ranging from essential payroll to HR pro, which includes enhanced HR support in addition to payroll processing features.
Wave Payroll is a solution for small- to mid-sized businesses that provide solutions to pay W2 and 1099 workers, direct deposit options, and automated bookkeeping assistance. Wave also provides advanced reporting of payroll expenses.
Pricing for Wave Payroll varies by state, but it starts at $20/month plus $6/month per employee or independent contractor in self-service states.
ConnectPay focuses on providing incredible payroll solutions for small businesses. We offer digital pay stubs, automated pay and compliance updates, seamless mobile access, time and attendance features, and more. Additionally, ConnectPay serves as your partner in your business efforts, assigning a local Connected Service Rep to your account who can support all your payroll needs.
ConnectPay offers competitive market pricing, contact us today for a quote that suits your small business's needs.
If you decide to outsource your payroll to a payroll management service, you deserve the best. That said, what is “best” is subjective. What is best for a small business, for example, may not be near a good fit for a medium-sized business in the same town.
We recommend evaluating multiple payroll services before making your final decision. Of course, we would love for you to give us a chance to earn your business as an outsourced payroll management service. However, we know we’re not the best fit for everyone.
Our specialty is small businesses, and we aim to be the best provider available for our clients. If you want that kind of experience, and if you’re a small business, don’t hesitate to connect with us.
If you want a little more information on our approach to payroll, I recommend checking out our resource, the Connected Guide to Payroll.