As an entertainment industry professional, you know how important it is to work with a reputable payroll company. They ensure that your employees and vendors are paid accurately and on time, and help you comply with local, state, and federal tax regulations. However, not all payroll companies are created equal, and it's essential to ask the right questions before you sign a contract.
Here are the top five questions you should ask your entertainment payroll company to be sure they provide the services you need and protect your productions finances:
How do you ensure accuracy in payroll processing?
Accuracy in payroll processing is critical, and mistakes can be costly for both you and your employees. Ask your payroll company how they ensure that every paycheck is accurate. Do they use advanced software systems to track employee hours and calculate paychecks? What measures do they take to prevent errors and ensure that all necessary taxes are withheld and reported correctly? They should have clear steps in place to provide quality assurance and offer transparency about their methods about how they are paying everyone on your team accurately and without delays.
How do you handle compliance with Tax & Labor regulations?
Another important aspect that you’ll want to ask a prospective payroll company is how they handle compliance with tax and labor regulations. Payroll tax regulations can be complex, and it's essential to work with a company that understands and stays up-to-date with the latest rules and requirements as they change regularly. You’ll want to know how they ensure compliance with local, state, and federal tax regulations and what methods they use. Do they have a dedicated team of experts who stay informed of changes to tax laws as soon as they are updated? How do they handle payroll tax filings and reporting and how do they catch and manage any errors?
Similarly, do they have a labor relations department that can help you comply with union obligations (see our guide to labor issues here). Having smart, dedicated labor relations help is very useful when those inevitable labor questions come up - especially at the point of set-up.
What services do you offer besides payroll processing?
Depending on your needs, you may be interested in additional services like benefits administration, HR support, or even time and attendance tracking that can help streamline your HR processes. By taking advantage of other services you need, you may be able to save costs by bundling services so be sure to see what related services are available.
How do you ensure data security and privacy?
In today’s digital world, just as important as financial security, is data security and privacy and you’ll want to choose a company that takes your information seriously and does everything to protect it from misuse Payroll data is sensitive information that should be protected from unauthorized access or theft. What measures do they have in place to protect your employees' personal information and privacy? Do they comply with industry standards for data security and privacy, such as SOC 2 or ISO 27001? They should readily share with you the methods and procedures they have in place regarding you and your employee’s personal data.
And finally, the #1 question payroll company’s get asked…
What is your pricing structure, and are there any hidden fees?
You’ll want a very clear picture on their pricing structure. Be sure to ask about any hidden fees or service charges that may be applicable. It's essential to understand your payroll company's pricing structure since these surprises can end up being costly. Ask your payroll company to provide a detailed breakdown of their fees so you can review them and ask if they apply to your situation. Some examples are, charging extra for services like direct deposit or year-end tax filings?
By knowing and asking these key questions you can find the right payroll company for your project. By understanding how they ensure accuracy, compliance, and data security, as well as what other services they offer and their pricing structure, you can make an informed decision and ensure that your cast and crew are paid accurately and on time.
