PrintAs a business matures and expands, one of the toughest challenges is keeping up with the growing complexity of payroll. Where once it was probably sufficient to use accounting software, today’s mounting tax and human resources implications, along with different pay scales and rates, make the task harder and harder. But rather than turning to payroll specialists, the smartest move may be to consider working with your bank to handle your payroll processing.
When considering your bank’s services, it is important to be clear on the full package of tools and resources available, such as features, pay options, tax compliance solutions, support, and software integration. In addition, the amount your bank will charge to handle your payroll is a consideration. The price is usually based on the number of checks, employee access, direct deposits, and a few other variables.
Also make sure to ask how much staff the bank devotes to handling its payroll customers and what software tools they use to process payroll. And don’t be shy about asking to speak to some of your bank’s payroll clients, especially about turnaround times, online tools and resources, technical expertise, and help desk support for tax and HR issues.
Transfer Funds Quickly and Conveniently
Sticking with your bank can be smart for many reasons, including the key fact that it limits how many times your money needs to move from one financial institution to another to facilitate payroll transactions. When working with a payroll specialist, there can be potentially dangerous lags in how quickly you transfer funds vs. when a third-party provider posts that information to your accounts.
In addition to the time savings, all of your account information such as payroll taxes, checking, revolving lines of credit, savings, and the like can be seamlessly integrated into one handy web-based report in a compatible, easy-to-digest fashion that is readily exportable into other software.
Benefit from a More Personal Relationship
Another benefit? Your bank may be more likely to give you a better deal than a payroll specialist to keep your business and expand your working relationship, which goes both ways. The more successful business you do together, the more likely the bank is to view you in a good light, which can benefit you when it comes time to increase your line of credit or get a commercial mortgage or a better rate on that next loan.
And your employees will appreciate added features such as e-mail notifications when they are paid and a secure online account where they can access their pay data and history as well as year-end 1099s and W-2s.
A growing business always means more payroll and tax complexities as well as more pressure to meet HR compliance requirements. Choosing your bank to handle your payroll can help out in all these areas as well as deliver better security and higher efficiency at a smart price.
