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4 Common Mistakes When Outsourcing Payroll/HR

Posted by HomeWork Solutions on 8/15/19 10:00 AM
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4 outsource mistakes

For household employers all the way up to midsize businesses, regulatory changes and administrative tasks can be an uphill battle. If you don’t have the staff to devote to these matters then it makes sense to outsource. The trick then is to do it right. This article touches on a few things to watch out for in the process of selecting a vendor/partner.

  1. Not knowing what you need. Generally speaking, smaller employers need more help. They simply don’t have the bandwidth to manage everything. For them it can be very easy to be tempted by a low cost option that might not provide enough help or, the opposite, find themselves in over their heads in features with minimal help to understand it all. Spending some time on research is well worth it. You can even try calling some of the companies you find; a good payroll company will be able to explain your needs in a clear manner.
  2. Not researching enough. As mentioned above, it is always a good idea to research your options. When dealing with legal and financial matters finding the right partner is worth the effort. Look for things like how long the company has been in business, if they provide information up front, or whether they offer special expertise in your type of organization. Do your best to get a clear understanding of the options in front of you, long term value can be a better indicator than initial price.

  3. Not keeping your employees in the loop. You certainly don’t need to get all your employees’ opinions on all of your options. That said, it is a good idea to let them know a change is coming before it happens. You should tell them the company, give them a contact, and explain the transition process if applicable.
  4. Not checking in as service progresses. No news is not always good news. It is smart to check in on your provider to make sure everything is going well. Once a quarter is usually a good time-frame and, ideally, the check in will be short and sweet. You should also ask your employees what their experience is like, especially if there is an issue that needs/needed resolving.

At HomeWork Solutions we pride ourselves on being a partner to household employers, not just a vendor. We’re here to answer any questions you may have even before you hire. With 26+ years of experience, and nationwide coverage, we can at least help explain your obligations. Our services also come with a dedication to transparency keeping you in the loop on every dollar paid and filed. If you have questions please feel free to call us at 1-877-899-3004 M-F 8:30am to 7:00pm Eastern, or use the button below.

Topics: nanny, agency, senior, CPA

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