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Payroll Sales Pro, Issue #3 -- Payroll Processing vs.In House
January 18, 2016
January 18, 2016
Monday Morning Pick Me Up
Inspiration and Information to start your week right
Eighty percent of success is showing up.”--Woody Allen
Payroll Talking Points
When you ask a client about how they do their payroll, they will give you one of three answers. They either:
1. Do their payroll “in house,”
2. Outsource their payroll to a payroll processor such as ADP, Paychex, Paylocity, etc, or
3. Have their accountant do it for them.
(For a complete description of using a payroll processor like PayPros versus in house, see the Payroll News article below).
If a customer says they do their payroll in house or have a trusted advisor like an accountant do their payroll, move on to the next client—these scenarios are very difficult to sell.
However, If a customer says they use a processor or (ADP, Paychex, Paylocity, etc.) you have an excellent chance to switch them to PayPros. Tell them PayPros can typically save them 20-25% over what they are currently paying and they will get a dedicated customer service rep that really knows them and the ins and outs of their business.
Ask them for a current invoice, send it to us, and when it closes you get residual commission for the life of the client.
For more detailed payroll Talking Points tips and information, see Payroll Tips and Techniques
Payroll Processing vs. In House:
Typically, biggest the reason most want business owners want to outsource their payroll is because of the tax filing, or what is known in the industry as “compliance”. Compliance simply means that a vendor helps their customers comply with a particular set of laws or regulations. Payroll processors like PayPros not only “pay” the payroll related taxes, they help with a customer’s compliance in other ways.
941/940 & SUI
Each quarter both the IRS at the Federal level and the tax bureau of the state your client is located in want an accounting of how many employees they are paying and how much they are paying. This enables both the federal and state tax collectors know how much is owed them. Not only do they expect payroll tax payments, but also SUI payments (State Unemployment Insurance). Employed people send payments to the SUI fund, so they are eligible to draw unemployment payments if they are laid off or fired (not qualified if they quit). At the end of the year, the quarterly 941’s (the summaries of how much tax has been collected and paid) are totaled at the end of the year in a 940 form.
Each quarter payments are made to both federal and state. Companies that process payrolls themselves (in house payroll), make all of these payments and file the above forms themselves. When companies find these calculations and paperwork arduous, they are likely to outsource their payroll so the payroll company can do all the tax calculations, filing and send the proper payments to the government for them.
SupportWhen companies process payroll in house, not only are they on their own when it comes to the filing, but they are on their own as far as information. Most call their CPA with tax questions. The only problem for some of your clients is that the CPA may charge for a consultation. Instead, not only can they have PayPros file the taxes, but they are available to answer any questions as often as they call and it’s included in the PayPros fee.
Software companies that sell in house payroll software have support too, but that is “technical support” that answers questions about operating the software or troubleshooting when the software does not work correctly. Companies are on their own when it comes to being sure payments are correct and made in a timely manner.
Call us at (888) 693-4611 for more information about how to add payroll processing to your current offerings.
Monday Morning Quarterback
Tips to help you self-audit your sales process
Persuasive People get more sales. But how can you become more influential and persuade more people?
Influential people respond rather than react.
If someone criticizes an influential person for making a mistake, or if someone else makes a critical mistake, influential people don’t react immediately and emotionally. They wait. They think. And then they deliver an appropriate response. Influential people know how important relationships are, and they won’t let an emotional overreaction harm theirs.
Influential people focus only on what really matters.Influential people aren’t distracted by trivialities. They’re able to cut through the static and clutter, and focus on what matters.
Think you’re ready to earn Residual Commission for the life of your clients as a Payroll Referral Rep? Contact us by calling (888) 693-4611 or filling out the form at Best Business Payroll--How to Make Residual Commission
We’ll be glad to answer any questions you may have and look forward to helping you become successful in any way we can.
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