Deciding to outsource the payroll and the related functions involves more than finding a service that ensures employees get paid on time. You also need to think about how the withholding is managed, and how the service helped you remain in compliance of current laws. One area to consider closely has to do with workers compensation. Here are some basics to keep in mind when you’re thinking about the type of workers compengsation services that need to be part of the package.
Transparency About Fees
You realize that this type of service will come with a fee. What you may not know is that some providers come with hidden fees that you only learn about after the fact. That can mean you end up paying more for this type of support than originally planned.
What you want to determine is if the provider under consideration provides a full listing of all fees that apply on a monthly basis, any that may recur on a quarterly or annual basis, and even those fees that may occur on a one-time basis. Knowing all there is to know about the fee structure makes it easy to determine if this is the right choice for your company.
A Pay As You Go Approach
There are basically two ways to calculate the amount of workers compensation that needs to be accounted for each month. One way is to estimate the amount based on what your employees have earned in the past. This can be tempered by projecting future amounts based on any wage or salary increases you plan on issuing during the upcoming year.
Another solution is to go with a pay as you go approach. This solution does allow for more accuracy and can ensure that you save money while meeting the obligation. It never hurts to talk with providers and see if they offer both options. If so, you can explore the merits of each one and decide what will work best.
Easy Access to Reports
At any point in time, you should be able to access all proprietary data related to your company’s finances. That includes more than payroll information. You should also be able to access reporting that provides a full picture of where you are in terms of recent workers compensation payments, as well as any that may be pending.
You’ll find that the better workers compensation services make it easy for you to access this information. Today, it’s often possible for business owners and other employees that you authorize to view the data using a secure online interface. This can be helpful when you are reviewing the current quarter’s expenditures, and making plans for the upcoming quarter.
A Reputable Insurance Provider
Above all, make sure you know what insurance provider will be managing your plan for workers compensation. It’s important to know that the provider has a reputation for the swift processing of claims, making payments in a timely manner, and is known for fast responses when there are questions. In short, you want the process to work without fail.
This is not an area where the level of service is the same no matter which company you use. Take the time to look at references, and ask some pointed questions on your own. How they are answered will tell you a lot about whether you want to do business with that particular provider.
Remember that the goal is to ensure everything is in order so that action is taken quickly if an employee is injured on the job. See this as one more way you let employees know that they are valued, and that you want to ensure they have access to benefits should they ever need them.