Providing payroll as a service to clients provides and opportunity to gain new clients, add a new revenue stream or become more of a part of your clients businesses. We
Katelyn Sullivan, OnPay
started our Payroll inDepth series to help you make well informed decisions regarding payroll in your practice through a Q&A format with practitioners who offer payroll as well as the vendors providing payroll services.
We "sat down" with Katelyn Sullivan recently and asked her some questions that should prove helpful to you in considering payroll for your practice.
IA - What are the biggest trends an accounting professional needs to be aware of regarding payroll?
KS - The past year has proven how important it is for businesses of all sizes to maintain up-to-date and accurate payroll and even further added to the complexity associated to do so. As constantly changing federal and state legislation continues to increase the burden of payroll processing and compliance on employers, more and more small businesses are turning to their accountants for help. In turn, accounting professionals are supporting their client’s payroll needs by utilizing the latest in full service payroll providers - whose platforms are critical for creating efficiencies, reducing manual error, and increasing firm revenues.
IA - How can an accounting professional help their clients navigate these trends?
KS Helping clients with a payroll service presents accountants with a huge opportunity, but there are also two emerging challenges:
- First, there are constant changes to federal, state, and local tax and compliance laws. From PPP loans to shifting Paid Family Leave and Workers’ Comp requirements, accountants who want to run a profitable payroll practice will need a way to stay one step ahead of new regulations.
- Second, the need (and advantage) of building a cloud-based tech stack is multiplying. Now that more employees are working remotely — our research shows that 65% of small businesses will allow at least some employees to work from home — your clients are going to need tools that can be accessed remotely. Building a tech stack also means reducing errors and duplicated work by seamlessly transferring data between payroll, time tracking, and accounting platforms.
IA - What are the top 3 considerations an accounting professional needs to keep in mind when adding payroll services to their practice?
KS - When adding payroll as a service, consider first the needs of your clients. What do they need from you, and how does offering payroll bring them value? When you can answer this question, you’ll have a better sense of how hands-on you want to be and how to position your service. At that point you’ll be able to address how you will staff the service and identify the right technology solution to enable your offering.
IA - What are the biggest roadblocks to adding payroll services to a firm's offerings?
KS - As a firm decides to add payroll as a service, often the biggest roadblocks are training and resources. The key decisions around how involved your payroll offering will be will drive the technology and staffing needs necessary to deliver a successful, and profitable, service.
IA - What does an accounting professional need to take into consideration when selecting a payroll vendor? (Please do not single out competitors, etc.)
KS - When evaluating technology, look for a vendor that saves you time and prioritizes accuracy and support. A full service provider will handle all of the tax payments and filings for you - including all state and local filings - limiting the compliance work so that you can focus on being the trusted advisor. Also look for well-built integrations with key tools such as time tracking and accounting softwares to maximize efficiencies.
IA - How would a reader get more information about OnPay or connect with you directly?
KS - The best way to learn more about OnPay is to contact me directly via email at partners@onpay.com.
Katelyn Sullivan leads the Partner Development team at OnPay, the top-rated payroll software for accounting firms and their small and mid-sized clients. Prior to joining OnPay, Katelyn spent seven years with Ernst & Young focusing on technology adoption and process improvements for business clients. Katelyn is a licensed CPA who earned her Masters in Accounting at the University of Georgia.