4 things to consider when looking for a payroll provider

A reliable payroll provider can give you peace of mind. They give you the resources to help you pay your employees and taxes accurately and on time. Their services go beyond basic salary calculations.

A payroll provider has a lot of tasks to do: record employee pay, calculate deductions, give pay slips, and file taxes. Most full-service payroll providers also integrate time and attendance.

Even if you have one employee, you should outsource payroll service as the penalties for errors and mistakes are much more expensive than the actual payroll cost.

But you may be concerned about missing payroll periods or data errors during the transition, but it doesn’t have to be chaotic.

Here are four things one should consider when looking for a reliable payroll provider:


What a waste it would be to spend money on a service that’s still sending the wrong payments to your employees. Before signing up, ensure that the provider has the expertise and skills for accurate calculations.

Expertise and compliance

Does the provider have subject matter experts who can handle various payroll tasks, including payroll calculations, taxes, deductions, and other requirements?

PAYE legislations are increasingly complex and difficult to stay on top of for employers. It is important to find out if payroll provider is up-to-date on laws? With HMRC increasing the volume of PAYE audits it conducts, the complexity has only increased. Errors in this area can lead to losses and affect the cash flow, in addition to the stress caused and lost working hours. A reliable payroll service provider will take all your payroll worries, allowing you to focus on growing your business.

Customer reviews

Talk to your family, friends, and other business owners. If you hear someone talking about a fantastic payroll provider, do not hesitate to ask for their details. But don’t trust the referrals blindly. It is essential to use online resources such as Google Reviews, Glassdoor, their website, social media platforms, and review sites to confirm a payroll provider’s reputation. It is always good to do some initial screening.

Data Security

Payroll data is super sensitive as it contains personally identifiable information. Ensure the provider has stringent data security policies, infrastructure, and a secure payroll management system. The payroll provider should have a secure cloud-based portal, eliminating the need for unsecured email exchange.

Your payroll provider should backup your data for worst-case scenarios and contingency planning.

We give a list of questions you should refer to as an “essential checklist” before signing up with a payroll provider:

  • What is the turnaround time?
  • Who is liable for those mistakes?
  • How much time does it take to fix a mistake?
  • Will there be any additional charges for adding or changing employee payroll?
  • Will there be any change in annual fees after one year?
  • How frequently will you receive reports?
  • Will payroll integrate with your accounting software?
  • What back-office technology does the service use?
  • What are the customer service hours?
  • Will you have a dedicated manager?
  • If the data is re-entered, will I be able to review it before it goes through to payroll?

To sum it up, a reliable payroll provider should do these three things for you:

  • Pays employees on time
  • Pays your payroll taxes on time
  • Completes your payroll filings on time

Most importantly, all three should be compliant with the law.

Outsourcing offers you peace of mind, knowing that your employees are paid on time, every time, in a compliant and efficient manner.

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