Helping Your Clients Choose a Payroll Partner

Business ownership often means juggling multiple tasks at once. From sales and marketing to staffing and customer service, owners must manage every aspect of their business. But sometimes, wearing multiple hats can be overwhelming. 

To help lighten the load, some business owners look to outsourcing. This is especially common when it comes to payroll management. Calculating wages, withholding taxes, and ensuring compliance is a lot to take on, and it often requires specialized knowledge. Luckily, business owners don’t have to go at it alone.   

There are many options when it comes to choosing a payroll partner, ranging from simple software to comprehensive one-stop shops providing all the bells and whistles. Not only does working with a payroll partner allow a business owner to free up time to take on other duties, but it can also help them remain compliant and mitigate risks. Following is a summary of the types of payroll services available:   

• Self-managed software solutions: These offer affordable pricing, user-friendly dashboards, and automatic filings.   

• Full-service payroll systems: These handle every aspect of payroll management, including time tracking, paycheck distribution, and tax filings.   

• Accounting professionals: These professionals offer personalized service with a deeper understanding of their clients’ business needs.  

• Professional employer organizations: PEOs provide comprehensive payroll services and a full suite of HR-related tasks.  

As an accounting professional, your clients no doubt trust you to have their best interests at heart. So, it comes as no surprise that they may also be looking to you to help them through the process of choosing a payroll partner. Chances are, you understand their business and can be a great resource in helping them find a partner that meets their needs. Best of all, you don’t have to be a payroll expert to do so. The following tips can provide guidance on assisting your clients in choosing a payroll partner.   

Consider the size of the business 

There are many factors to consider when recommending a payroll partner to a client. One of the most important is the size of the company. A simple LLC will have different needs than a large-scale corporation, and what works for one may not work for the other. That said, if a client hopes to expand in the future, selecting a payroll partner that will grow alongside them is also a consideration.   

Determine your client’s needs 

Not every business will benefit from every feature a provider offers. Some payroll partners simply cut checks, while others manage employee classification, time tracking, tax filings, and compliance. Important considerations also include the following:  

• Where the business is located 

• Whether there are employees in multiple states 

• If employees are salaried or hourly 

• Frequency of pay  

Other factors to consider include the client’s budget, the type of pricing model and service tiers, the type of customer and technical support provided, and the partner’s track record in data security and privacy.  

Assess functionality and features 

In helping your client choose a payroll partner, it’s also important to look at the functionality and features of the provider. Because each business has unique needs, it’s essential to assess how a payroll partner can help them. For example, some businesses need assistance with compliance, so the partner they choose should have familiarity with their specific industry and the compliance requirements they entail. Employee classification is another essential service, as is labor reporting.   

Other important features a business owner may be looking for include seamless integration with existing accounting software and other tools, a user-friendly employee dashboard, cloud-based access, and whether the provider offers a mobile app.  

Position yourself as a trusted partner 

Because every business is different, each has different needs when it comes to choosing a payroll partner. As a trusted ally, you are in the position to help your clients select the payroll partner that’s the right fit for them. Skipping the one-size-fits-all approach and instead helping your client make an informed decision based on their personal preferences can help ease the burden of managing their own payroll while keeping them in compliance. 

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