Finding The One: 7 Questions To Ask Your Payroll Tech
Does your company use independent contractors? If so, you know the challenges that come with juggling a complex payroll while navigating the tax system and its regulations. However, new advances in payroll technology can make this process easier, saving you both time and money. Here are seven questions you should ask to fall head over heels in love with your payroll platform.
1. How simple is the payroll software to learn and use?
The primary purpose of on-boarding payroll software is to save you and your company time and money. If you have to spend hours learning how to pay a relatively few contractors, you should probably look elsewhere. Even worse, if you must do manual workarounds because of glitches or an overly complex system, you're wasting your time. The process should be intuitive, seamless, and engaging right out of the box. If it feels like magic, you've found the right one.
Not only should your contractors be on-boarded quickly, but they should also have full access to their accounts wherever they log in. Gig Wage's interface allows them to self-manage their accounts, and our customer service department will handle any questions or problems, so you don't have to.
2. How long does payment take?
Your company will rise and fall based on the talent you hire. The gig economy is exploding because companies can gain access to a wider variety of creative, diligent workers who may not be interested in working for a single company full-time. To make your company competitive with others fighting for the same workers, you'll want to make sure your contractors are paid as soon as possible for their work.
Research shows that about 80% of gig workers prefer to receive their pay immediately. Choosing a payment technology platform that offers instant payments is a fantastic way to keep your company competitive and offer gig workers what they want.
3. How does the payroll software handle taxes?
As your business grows, preparing tax forms for your 1099 workers by hand becomes difficult, if not utterly impossible. The system must include compliance as a fully integrated service with payment and payroll to be worth your time. The penalties for filing forms late can potentially run into millions of dollars.
Plus, each state has different regulations, and you're required to comply with both state and federal laws for every contractor. That's a big deal when they're spread across different states. Even worse, the laws are frequently changing.
The best payroll technology completely automates all of this using advanced and flexible programming. The technology should collect and validate the Taxpayer Identification Number (TIN) via a W-9 Form from each worker, store the information securely, and automatically generate and issue 1099s on time. It's done without you having to touch it – or even think about it. As tax laws change, the software will instantly apply the changes across the entire system, eliminating potential human errors.
4. Can the system scale with your business?
One of the gig economy's most important features is the ability for your workforce to grow and shrink with your changing needs quickly. Employees typically have some expectation of job security, while contractors usually work for more than one employer and have no expectation of long-term job security from a particular client.
The system needs to be highly flexible and responsive to your immediate and future needs. You should be able to pay as many – or as few – contractors as needed without your time investment dramatically changing.
5. Does it have a high-quality API?
Once you scale up, you may integrate the compliance software with your own software applications through an application programming interface (API). Look for a robust payroll tech company with a highly advanced developer API designed to connect to your system quickly and easily.
Other features it should include are:
- A one-call API
- Flexible customization options
- Simple white labeling
- Contractor separation
- Full 1099 tracking and compliance
6. How secure is the payroll system?
You want a secure payroll system since you're collecting sensitive information from your gig workers. The best payroll tech will use high-security banking software protocols, including full KYC/AML support and automation, and have an established reputation in the industry. Make sure you're investigating one of these platforms.
7. Does the payroll system offer analytics?
Your compliance and banking software needs to have all the analytical information and reports at your fingertips. It should combine payroll, payments, and banking in horizontal integration and allow your staff to generate custom reports and quickly spot problems.
Using a payroll tech platform streamlines your business, allowing your staff to focus on your core business goals and keep your independent contractors happy. This can ultimately turn them into brand ambassadors for you and potentially boost retention. Like dating, there are so many different options out there. However, if you take some time to explore and use these questions to find what you're looking for, you might end up with your perfect match made in heaven.
Written byGig Wage