As the American Hospital Association reports that more than half of hospital’s expenses come from payroll and benefits, hospital payroll administrators cannot afford to make payroll or benefits administration mistakes. In order to help their hospital operate more efficiently, hospital payroll administrators often outsource their payroll.
While hospitals represent the second largest employer in the private sector, the accuracy of the payroll and benefits administration is imperative. Also, with high employee turnover and time differentials, hospital payroll administrators should look for a payroll service provider with integrated payroll, benefits administration, time and attendance and advanced reporting features for labor tracking purposes.
Why Outsource to Payroll Service Provider?
When hospitals deal with processing payroll, they must approach with caution and make sure to pay attention to time differentials. Since hospitals operate and employ workers 24 hours a day, seven days a week, tracking shift changes in accordance to federal and state regulations can prove difficult or challenging when processing payroll.
A good payroll service provider will offer time and attendance, payroll and integrate benefits administration in a way that streamlines administrative processes and increases accuracy. With integrated payroll and time and attendance, hospital or payroll administrators can keep track of payroll wages and accurately track employees hours worked.
- Hospital Payroll Administrators Looking to Outsource Payroll Should Consider the Following:
- Discover your hospital’s needs by analyzing figures and data from current payroll, benefits administration and accounting information stored.
- Research your options. Interview several payroll service providers to determine if the services they provide fit your hospital’s needs.
- Ask if the payroll service provider has the ability to customize their payroll services they provide to your specific needs.
- Ask if your time clocks will work with their payroll system and how accurately the system helps you track time and attendance.
- Find out if benefits administration can easily be executed with in their payroll system.
- Request testimonials from current clients while making sure they have experience with hospitals that operate similarly to yours.
- Find out the different pricing for each payroll service provider. Some payroll processors charge businesses to add or delete employees. Others offer fixed rates for the length of the contract without incremental fees.
- Look for a payroll service provider that guarantees information security. Make sure the payroll provider has a good reputation and audits their security with a third party auditor. Make sure you are comfortable with how your provider transmits sensitive data.
- Look for a payroll service provider that prepares quarterly and annual employee tax filings.
- Make sure the payroll service provider has user-friendly software.
Hospital payroll administrators can find a hospital payroll service provider to fit their many different needs.