Shopping for a new payroll provider can get overwhelming pretty quickly.
After a few demos, a lot of the systems can start to look the same. Everyone processes payroll. Everyone has reports. Everyone has an employee app. And everyone is going to tell you they provide great service.
So how do you actually compare them?
The key is asking questions that go beyond the sales presentation.
Here are eight we think every business should ask before choosing a new payroll provider.
1. Who Will I Work With After I Become a Client?
During the sales process, you usually know exactly who to call.
But what happens after you sign?
Ask whether you’ll have a dedicated contact or team. Find out how support works and what happens when your normal contact isn’t available.
There’s a big difference between knowing who to call and starting over with a general support line every time you have a question.
2. What Does the Implementation Process Look Like?
A great payroll system won’t mean much if getting there is a mess.
Ask who will handle your implementation and what you’ll be responsible for providing.
How will your employee information be moved over? Who sets up taxes, deductions, PTO, and direct deposits? Will someone review everything before you process your first payroll?
You should have a clear idea of what happens between saying “yes” and actually going live.
3. What’s Actually Included in the Price?
Don’t compare payroll providers based only on the first number you see.
Ask what’s included and what costs extra.
Are there additional charges for W-2s? Tax filings? Additional payroll runs? Implementation? Reports? Integrations? Adding employees?
You don’t want to find out six months later that the price you expected and the price you’re actually paying are two different things.
4. Can the System Grow With Us?
Think about what you need today, but also think about where your business might be a few years from now.
Maybe today you just need payroll.
Later, you might need time and attendance, onboarding, benefits, HR tools, scheduling, performance management, or more advanced reporting.
Ask what’s available and whether those tools work together.
Switching payroll companies takes some effort. Ideally, you don’t want to do it again simply because you’ve outgrown the system.
5. What Happens When There’s a Payroll Problem?
This might be one of the most important questions you ask.
Payroll problems don’t always happen at convenient times.
If something doesn’t look right on payroll day, who do you contact? How quickly can you reach someone? Does that person understand payroll, or are they simply taking down your information and passing it along?
Every provider can show you what happens when everything works.
Ask what happens when it doesn’t.
6. What Other Systems Can You Work With?
Payroll rarely operates by itself.
You may have a 401(k) provider, benefits platform, accounting software, timekeeping system, or other technology that needs to work with payroll.
Ask about those connections before you make a decision.
If something doesn’t integrate directly, find out what the process will look like. You don’t want to discover after implementation that your team now has another manual process to manage.
7. Can You Show Me How We Would Actually Use the System?
A demo should be more than a tour of every feature the software offers.
Ask to see the things your team actually does.
How do you process a payroll?
How do you add a new employee?
What does approving time look like?
How do you make a correction?
Can you run the reports you use today?
Bring a few real-world examples to the demo. It’ll give you a much better idea of whether the system fits the way your business operates.
8. What Happens If We Decide to Leave?
It might seem strange to ask about leaving before you’ve even signed up, but it’s worth knowing.
Ask about contracts and cancellation requirements. Find out what happens to your payroll records and how long you’ll have access to the system.
Can you easily get your historical reports and employee information?
A good business relationship shouldn’t depend on making it difficult for you to leave.
Ask Us the Same Questions
These questions aren’t just for other payroll companies.
Ask us too.
At ASAP Payroll, we want businesses to understand what they’re getting before they make a decision. That includes the technology, implementation, service, pricing, and what working with our team will actually look like.
We’ve been helping businesses with payroll since 1989, and we know choosing a payroll provider is about more than checking boxes on a feature list.
It’s about finding the right fit for your business.
If you’re comparing payroll providers or simply want to see what other options are available, we’d be happy to have a conversation.