3 Qualities to Look for When Choosing a Payroll Company

3 Qualities to Look for When Choosing a Payroll Company

When starting a business, you’ll likely need to choose a payroll services provider. You might also need to choose a new payroll company if the one you’re currently working with can no longer serve your existing business’ needs.

Regardless, because payroll is a critical element of any business, choosing the right solution and company to work with is essential. It can also be easier than you think. You’re much more likely to choose a payroll company that’s right for you if you simply look for certain qualities when vetting your options. They include the following:


Some payroll companies offer limited services and features that don’t fully serve the needs of a business. Others offer many services and features, some of which you may not require, and thus are excessively costly to work with.

Your goal is to find a payroll company that strikes a balance. They need to offer a range of services and products, but they must also let you choose which products you want to use. This allows you to address all your payroll needs without paying for unnecessary features that you’ll never make use of.

Flexibility is also an important quality to seek out in a payroll company simply because your business will hopefully grow over time. Payroll system features or products you may not need now might become essential to your business in the future.

For example, there may come a day when you need to deliver employee paychecks in a variety of methods, or when you need to withhold some of an employee’s wages if they’re being garnished. When you choose the right payroll company, you’ll be able to make use of additional features and services relatively easily when you begin to need them.

Basic innovation

Payroll technology is always changing. While embracing all payroll innovations isn’t necessarily ideal, as some “innovations” are not actual improvements, a payroll company should embrace the basic advantages of new technology.

For instance, when choosing a payroll software, look for one with a mobile app that lets you access at least some of the system’s major features on a smartphone or tablet. That’s essential in the digital age. Additionally, a strong payroll system should use technology to automate various tasks, such as updating tax tables to reflect business tax law changes.


Your payroll system should offer a range of features and services, but there may also be other systems you’re already using whose functions somewhat overlap with payroll processing and related tasks.

For example, while it’s ideal if a payroll system has built-in timekeeping features, if you already use a different timekeeping system, you may decide it’s too time-consuming and complicated to train employees to use a different program. Fortunately, the timekeeping modules of some payroll systems can integrate with other timekeeping programs, allowing you to easily implement a new approach to payroll without having to set aside too much time for employee training.

That’s just one example. Generally, you should seek out a payroll company whose services can integrate with other services and systems you’re already using.

You should also consider your business’ specific needs. This is a general overview of qualities any business owner in virtually any industry should look for when choosing a new payroll company. Again, though, the strongest payroll companies are often those whose range of services, products, and pricing options make them the right choice for numerous businesses and sectors. Take the time to find such a company. Remember, payroll services you don’t need now may become absolute requirements as your business grows.