Why Leveraging Payroll Data Is As Important As Using A Payroll Service
In order to answer the question of why payroll data is so important, we need to start at the beginning.
Let’s rewind to when your company first started. Chances are, it was very small…just a few employees plus the owners. In time, the owners realized payroll was too much of a pain to do on their own and hired a service. Then, if all went well, the service worked out and they forgot about payroll. It just worked in the background.
Over time, they decided to add benefits to their business. Some of them mandatory, like Workers Compensation Insurance, and some of them optional, such as 401(k), health insurance, etc.
Most of the time, each of these programs were a hassle to get done. It took time to find the right provider at the right cost and to make sure it worked as advertised. As a result, after the service was “up” the business owners moved on with running and growing the business.
Here’s the problem – all of these benefits require administration.
More Than Just “Payroll” Data
Providers need to know about new employees, termed employees, and everything in between. To make things more complicated, the data points each vendor needs varies based on the type of benefit offered.
To combat this, the business owner hires an office manager. The office manager now has the happy responsibility of taking all of the data out of the payroll system and figuring out how to get it to the various providers. Often, this means manually rekeying data into a providers website or taking a payroll report, modifying in excel, then uploading to the providers site.
While these methods work, they are manual and by design, increase the probability of an error. Errors in benefit programs like a 401(k) can be tremendously costly to the business in both penalties and time. The business owner now realizes a new solution is needed – but what?
At this stage, many explore the possibility of purchasing benefits directly from their payroll vendor. There’s certainly nothing wrong with this path. At its best, it provides the business easier administration and generates tremendous additional revenue for the payroll service.
That said, there are a few tradeoffs to consider:
Payroll companies that offer benefits generally do so as an “add on”. As a result, benefit options are sometimes limited, as is the depth of knowledge of customer service.
We refer to this as building your own “Hotel California”. Service after service is added, which is great when everything works, but it makes exiting very difficult because so many things are now tied up with one vendor.
Don’t Trap Yourself
There is another option, and it’s one we’re very proud of.
Singularity isn’t a product per se, it’s a way of doing business.
At Balance Point, we believe your data is just that, yours.
Our role is to look at each of your vendor relationships and determine the best and most efficient way to move data to them. For many vendors, we’ve created a direct electronic link to them, so once approved by the client, we simply send data directly to the vendor after a payroll has processed.
For others, we might create a perfect report that can be easily uploaded to the vendors site.
No matter the circumstance, we’ll work with each client to determine how best to remove manual work. The result for our clients is time saved and, perhaps most importantly, a huge reduction in risk. With rekeying data eliminated, so are data entry errors. Also removed are concerns around timing of vacations for whoever reports payroll. As long as payroll is processed, the appropriate vendors are automatically provided the data they need, with no client interaction.
This is Singularity, and we’re proud to say it’s a huge part of why we’re different.
Take Control Of Your Payroll Data
Ready to take control of your payroll data, reduce your risk of errors, save time, and implement the most efficient way to manage all of your necessary information in one place?