Important Questions to Ask Your Prospective Payroll Provider

Tushar Vijay
5 min readSep 27, 2021

While looking for payroll solutions, one tends to ask several questions to a payroll provider. Is there an option to upgrade? What’s your USP? Are you proficient in handling HR and payroll management software? All these questions need clear answers. Payroll processing is essential for a growing business.

In today’s cut-throat competition, organizations look for ways to stay relevant. As HR, you want to work with the best team so your organization can benefit, and that’s understood. If you’ve been using redundant payroll software until now, it’s time to upgrade. And if it looks too heavy a task to manage payroll of hundreds of employees, you must hire a payroll provider that knows the job well.

Here, making a wise decision is crucial. It’s about managing salaries alongside understanding tax calculations. You don’t want to invite trouble by doing things half-heartedly.

Ask the following questions to your prospective payroll provider so you can join hands with a reliable team.

Do you offer an employee-friendly portal?

Selecting an efficient payroll service solution can help you save time and cost. And if it comes with employee-friendly features, it’s a win-win situation for you. Nowadays, a growing organization demands an HRMS that offers an employee-centric service portal. It helps save time, and employees don’t have to rely on HR for everything.

While considering payroll services, you must ask your payroll provider if the solution includes employee-centric tools and features. Will my employees be able to edit their personal and official details conveniently? Can they access their salary details and download salary slips without requiring access? Your permanent and contractual employees should have access to the portal. When you find answers to these questions, you can go ahead with the next round of discussion.

Do I have an option to customize later?

When you realize the need for optimum HR solutions, you have a point or two to discuss initially. You may need to upgrade payroll software to get help in the payroll processing tasks. It could be your priority at the moment. However, you may feel the need to introduce a chat-based system to communicate with employees. Therefore, it’s wise to ask your payroll solution provider if you can upgrade payroll software.

What services do you offer?

It’s better to research your prospective payroll provider. Find what services are included in the package. You must compile a list of features you want in your chosen payroll solution. It should include employee time tracking, data compliance and reporting, regional tax compliance, and self-service features.

When looking for HR solutions, you must hunt down the services and features you want. You don’t invest in payroll services every day, so make a wise choice. It will yield desired results later.

Can it make employee onboarding easier?

One of the issues that HR faces when onboarding a new employee is entering and saving details. If you have recruited 20 employees this quarter, managing their data can be difficult. Not to mention the time it can take to process their salary information.

That’s why hire a payroll provider that is proficient in HR and payroll management. It should offer you payroll solutions that help you enter the details once, and you have to come back to the sheet only when you want to update something in it. It’s called becoming efficient.

Can I integrate payroll services with other solutions?

When we talk about HR and payroll management, we are talking about integrating different HR services. If you cannot integrate the time and attendance feature with your payroll offerings, there’s no point in going further. You may be at a loss. For accurate payroll processing, you would need data integration in the first place. Do not go through the tiring task of duplicating the same data in different systems; it doesn’t make sense.

How will you ensure data security?

As HR, you must have read about HR digital transformation. Well, it’s the way forward for organizations that aim to increase efficiency and productivity. Since most payroll service solutions are cloud-based now, you should take your time to understand what’s best for your organization.

Data security is of the essence. It should be the main factor in hiring a payroll provider. Choosing a cloud-based solution is the best choice you can make. However, you must look at its capability and functionality to decide better.

Your payroll vendor should deliver a secure and compliant product. Can you customize access and security based on a user’s profile? How do you handle data backup? Are there any risks involved?

Will time entry be automated?

Gone are the days of manual time tracking. It kills productivity. If you have been following this practice, it’s time to welcome change. Ask your payroll provider if time entry is automated. An employee’s clock in and out hours should be recorded but not at the expense of ignoring other tasks. When these simple tasks are automated, you can take a sigh of relief. Besides, your employees become more productive.

Does the dashboard come with a user-friendly interface?

As HR, if you can’t operate payroll software due to a chaotic interface, you can’t expect your employees to give it a thumbs up. Many payroll vendors offer cutting-edge payroll solutions but fail to develop a user-friendly interface. It may take time for a user to understand its functionality, and an HRMS may lose its credibility.

Is the new payroll software system easy to use? Can you learn it within a period? You should ask your payroll provider if you can access the central overview of everything. If not, you may be settling for mediocrity.

The idea is to introduce a customizable dashboard where you can navigate different tabs with a single click. You don’t have to go through the trouble of accessing tutorials and guides to operate it.

Making an informed choice

If you’re planning to upgrade your payroll software or looking for payroll solutions, the first thing you should ask yourself is if the hired services can meet your business needs. Will you be able to scale up processes and bring efficiency into the system? If a task that takes 20 minutes to complete can be automated or take less time to finish.

Different organizations have different needs. Some may prioritize employee data management over payroll management. While others may consider the time and attendance feature the deciding factor. However, they all look for relevant HR solutions that help them reduce costs and improve productivity.

If your payroll vendor can offer these payroll services, you should go ahead and make a decision. You may find yourself spending more time on building employee engagement strategies and worrying less about payroll processing.

In the end, it’s about caring for your employees in the best manner possible.

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Tushar Vijay

A tech enthusiast, expressionist, and serial blogger. Translating latest insights and trends into useful interpretations that matter to people in business.