7 Reasons to Use a Bank for Payroll Services

Updated: May 14, 2009

Issue

Many banks now offer payroll processing services. Should you use your bank's payroll service or stick with a firm that specializes in payroll? There are several reasons you may want to switch.

Considerations

1. A bank's payroll service is just as good as a specialist's. A large firm that offers payroll services and your bank have a major similarity; neither has its full attention upon payroll, but both have enough resources to do it correctly. Smaller services that specialize only in payroll solutions may not have the resources to avoid dropping the ball now and then.

Investigate your bank's payroll services department just as you would any other firm's payroll service. Ask how many payroll specialists there are. Determine the ratio of specialists to clients, and to the number of checks cut per month. Learn what software the department uses to process payroll and its reputation among payroll processors. Request client references and check them.

2. Fewer participants in payroll mean fewer opportunities for mistakes. Your bank has your money. If you use another payroll service money must move from your bank to the payroll service's account. Bad things can happen during such transfers and using your bank's services can prevent these mishaps.

3. Save time and gain a better picture of your financial condition. You will have integrated information about all your money accounts: checking, savings, payroll, payroll taxes, etc. You can read one report or go to one Web site instead of several.

The information you get will be more up to date, as well. Often there is a delay between a bank's transfer of funds and a third-party payroll service's posting of that information to your account. Such delays are minimized, if not entirely eliminated, when the money is only moving internally.

4. It is easier to monitor the financial and operational health of your bank. In these uncertain economic times you need to keep a close eye on the people who handle your money. Put all your eggs in one basket - and watch that basket!

5. Your bank's payroll service might be less expensive. The bank may offer payroll services at cost to attract and retain customers. The efficiencies of keeping money under one roof may reduce the cost of payroll processing. Volume discounts might also be available.

6. It may be easier to get loans. The more business you do with your bank, the firmer and more personal your banking relationships become. Those relationships make a key difference between a loan's approval and rejection, and can improve the terms of any loans you may get.

7. The security of your financial information and assets is increased. The more firms handling your money and transmitting it electronically, the greater the opportunity for bad guys to gain access to your account information and funds.

Conclusion

Employing a payroll service is unavoidable today. But what type of service is up to you. As illustrated above, a bank's payroll offering is worthy of your consideration. You will likely save time and money, as well as enjoy better security and efficiency.

Before deciding on a payroll service provider, however, make sure you know your options. Focus' Payroll Services Buyer's Guide and Payroll Providers Comparison Guide will get you started on the right path.

Related Categories
Featured Research
  • Enterprise Security Software Roundup 2019

    According to Juniper Research, cybercrime is estimated to cost businesses $2 Trillion in 2019. Your business needs strong security measures in place. The most robust security software available on the market is Enterprise Security, which is a full-spectrum suite of tools that are designed to cover all the important security needs of a company, in one system. Check out our recent whitepaper to learn more about protecting your business against cybercrime and see who's leading the Enterprise Security industry. more

  • Cybersecurity in the Banking Industry

    Cyber breaches have been rampant lately, but the banking sector is most vulnerable owing to its primary responsibility of safeguarding money. This whitepaper therefore features a list of precautions that banks can take, along with comprehensive software recommendations to maximize security. more

  • Business Security Software Roundup 2018

    Owing to growing concerns of cybersecurity by companies both big and small, the software market is abundant with solutions promising to protect your valuable data and networks. Which one's right for you? This whitepaper helps answer the question! more

  • Office365 Adoption eGuide

    Microsoft moved to the cloud in 2014, and, as a result, Office 365 is taking off. Now, Okta customers are connecting to Office 365 in increasing numbers. This eGuide explains why IT departments should plan and deploy solutions around identity and mobility management in concert with their Office 365 roll out to get maximum user adoption. more

  • Okta Directory Integration

    For most companies, Active Directory (AD) or Lightweight Directory Access Protocol (LDAP) play a central role in coordinating identity and access management policies. When on-premise applications are integrated to Active Directory or LDAP, users get the best possible experience. That's why Okta's cloud-based identity and access management service provides a highly useful single integration point. more