Payroll Process and HR administration are necessary components of how organizations function. Many businesses easily get caught in the day to day process and neglect to monitor payroll processing information. Various line items may appear on an invoice. Some of the miscellaneous items may not be representative of the contract secured with the Payroll/HCM processor. For instance, an implemented price increase may go unnoticed without proper scrutiny. Several of the larger payroll processing companies typically announce price increases at the end of June for their fiscal year.
Three ways your business can stay ahead of rising costs.
Review Your Invoices
Your organization’s payroll processing department should make routine checks to ensure that invoices are correct. Often Payroll/HR/Time invoices are not reviewed as the provider collects payment when processing payroll. Ask the right questions to provide a full understanding of the charges included. Your company may catch an honest mistake just from a simple invoice review.
Know Your Current Rates
Often, organizations are unaware of the negotiated rates for their payroll and HR processing fees. However, your processing company should be able to explain the details driving the charges made. Find out if any software or service improvements are on the horizon that you may want to utilize. Seek new information about upcoming trends with rates, to ensure your organization is well prepared.
Work Ahead of Your Contract Renewal Date
Make sure your organization keeps a close eye on your renewal period. Over the last several years the increases have averaged 3.5% annually. As previously mentioned, clients often miss price increases that have been implemented. For this reason, some of the well-known payroll processing companies can get away with unfavorable fees and terms.
You may be able to avoid some of the increases. However, your payroll and HR department should continuously confirm that they are leveraging the Payroll/HCM software and service solutions that they are paying for. Contact your provider to cancel any underutilized solutions. As organizations continue to find ways to operate more efficiently, Payroll/HR Admin is a great place to start.
About the Author:
Linda Haske was VP of Manufacturing Administration and Group Director of Cost Management and Finance at Acco Brands, where she was instrumental in responding to RFQs from commercial office supply distributors. As Group Controller at James River Paper Company and Finance Director at Bic Corporation, her responsibilities included managing payroll processing functions.
Haske has a B.S. in Accounting from St. Norbert College in Wisconsin and an M.B.A. in Finance from the University of Connecticut. She chairs ERA’s Payroll/HR Admin Practice, and over the last 12 years has conducted over 200 reviews for our US based clients.