Payroll is a core component of running a business. For years, many small businesses managed payroll and HR administration separately — and manually — using accounting for payroll and an HR administrator for benefits. Now, with the expansion of HR and benefits technology, these services are widely available as paper-free software solutions and can even work together thanks to integrations.
To gain a competitive advantage, brokers have to offer an integrated solution to their employer groups.
Even if a business has migrated their payroll and benefits administration services to a software solution, they might be struggling with managing multiple systems. Worse yet, they could be dealing with duplicate or incorrect information in one or both platforms. An integrated payroll solution removes these pain points for HR teams by letting the benefits administration and payroll software “talk” to one another.
And according to a survey of businesses offering health insurance to their employees, nearly 40% of businesses would like their benefits administration platform to connect with their payroll system.
At a technology level, a payroll integration uses an API connection to securely match demographic and deduction information between a payroll provider and benefits administration platform (or vice versa) automatically. This connection helps guarantee accurate data by syncing new or updated employee records across systems.
For example: There is new deduction data for an employee in the benefits administration system. A payroll integration will automatically transfer that data to the payroll provider, eliminating the need for duplicate data entry, drastically reducing the potential for human error, and resulting in an up-to-date paycheck.
For HR teams, employees, and health insurance brokers alike, there’s no shortage of benefits to integrating a payroll system with a benefits administration system. Both are already being used, but they’re even better together!
For HR Teams
As outlined in the example above, integrating HR and payroll solutions allows for quick updates between the two systems in the event of new hires, terminations, or other employee changes. Which saves time, reduces errors, and increases HR productivity.
Especially for small or one-person HR teams, a payroll integration allows them to focus their time and energy on high-value activities rather than administrative tasks — like duplicate data entry.
For Employees
With a payroll integration, employees have one fewer login to remember and one less place to worry about getting information updated thanks to the automated data feed. Employees can simply log in to their user portals and access information related to payroll, current tax deductions, and benefits.This simplifies employee access to update benefits and payroll information, reducing friction points.
For Health Insurance Brokers
Broker agencies are providing more options and deeper services for their clients than ever before. Help protect your current book of business by offering a digital, all-in-one solution to employer groups. That offering can go a long way towards winning new business, too. Brokers who used Ease this past year were 30.79% more likely to win new business than those who didn’t.
If your employer group is ready to integrate payroll, make sure your benefits administration system maps to the structure of their payroll system. For example, if specific departments, locations, job classes, or divisions are utilized for payroll, match that setup in your benefits administration system. With this matching structure in place, it will be faster to set up the integration and require less cleanup.
First, check out our list of current payroll provider partners. If your groups don’t work with any of our current providers, let us know what payroll provider you’d like us to partner with next. If we don’t currently support a specific payroll provider, we do offer a number of customizable reports to import and export payroll data. Please note: This process can take longer than using one of our existing payroll integrations.
To get started, head to your marketplace to enable payroll for your employer groups or reach out to your Ease team for more.
Not an Ease user yet? Book a demo and learn how our payroll and carrier integrations can save you and your groups time.