Serving Today s Small Business: Using Payroll to Increase Client Retention

Transcription

1 Serving Today s Small Business: Using Payroll to Increase Client Retention Welcome back everyone and I m really excited to have an easy going guy as our next speaker, Jake Haffner who is a CPA and also a payroll expert. He works with ZenPayroll and so we re going to be talking about having payroll become profitable for your practice. Let me cover these first few slides Jake on where to get the PowerPoint and I don t know if those are in your deck or Yes they are. All right so same place and same song and dance. This is a 1 hour CPE. If you ll go to the next slide and we need you to stay on the line for at least 50 minutes and answer 3 of the 4 polling questions. All right take it away Jake. Awesome and thank you so much. I want to confirm with you that you ll be able to launch the polling questions for us? Yes. Awesome. I appreciate the warm introduction and I m Jake Haffner with ZenPayroll. I am definitely happy to be here and talk to everybody who is listening and hopefully this will be a useful and informative session for each of you. You ll learn a little about payroll and things like that, especially ZenPayroll and how we can potentially fit in with your practice. In general, how payroll can fit in with your practice. This is a little background on me. I spent the beginning of my career at the Deloit and worked in a lot of financial service companies but that was my primary niche there. Then I left and worked at another small business where I was the back office Controller and did a lot of other things for the company in general but learned a lot about payroll and actually how I got introduced to ZenPayroll. And I ve learned a lot through industry experience in public accounting. Hopefully there will be some knowledge for you guys that I can transfer. As we re going through this you do have the ability to ask questions and so please chime in as we re going through. I m with a colleague and she ll be answering 1900 Preston Rd 267 PMB 95, Plano, TX Page 1 Copyright 2015

2 those questions as we go through and so please feel free to let us know specific stuff that might come up as we go through. We re going to start with an agenda and these are some good stats to look at and set a high level overview in what we re trying to accomplish. 40% of small businesses say bookkeeping and taxes are the worst part of owning a business. Ultimately that s what each of us here can really help small businesses with. I m sure most of you already know this but it s a subject to always keep in mind in how you can be helpful to them. Payroll is very much a part of it, the payroll tax component is definitely something a small business owner isn t going to want to focus their time on and so it s an opportunity for you to use your skill set. In terms of solutions and what not that s where leveraging technology is a big time saving and we ll go into that in more detail throughout the presentation. Then we ll talk specifically about what those small businesses are really looking for and I already touched upon that. Then ultimately how payroll can really factor into your practice and streamline things overall. More of how the presentation is structured, we re going to start off with payroll specific of why traditionally different CPA s and bookkeepers or accountants in general have shied away from offering payroll and so there are common objections. Then we ll talk about in relation to those common objections why you d want to offer payroll to your clients. I ll get into some details on why it makes sense logically and then we ll move into more tangible pieces of approaching payroll and how you can actually implement it effectively into your practice it that s something you re interested in doing. So how to price it effectively and bundle it with those other tax and bookkeeping services you re already providing your clients. Then we can talk about actually initiating that conversation with your clients. So how to actually set a meeting, start talking about how to grow that customer relationship and approach your clients effectively. After that payroll specific information, we ll jump into a demo of ZenPayroll and what we have to offer. Use it mostly as an idea of how you can utilize a modern tool to effectively do all of those different things we ll go ahead and lay out in the beginning. Hopefully the example will give you an idea of what it actually looks like and so I ll give a demo of that Preston Rd 267 PMB 95, Plano, TX Page 2 Copyright 2015

3 Then we ll talk about now that we re out of tax season or at least hypothetically out of tax season, basically the idea of leveraging your conversations that you re already having with clients, whether it be for different reasons and different time of the year obviously and the seasonality plays into this but how to actually approach your clients and utilize it as an opportunity to grow and diversify your client relationships. With that we re going to jump into the first item I touched upon earlier, just the common objections with payroll as a service for accountants. Really the primary thing I d say we see is usually rooted in the legacy perspective of what payroll really encompasses, the idea it s complicated. It is a complicated process at the end of the day and payroll has a lot that goes into it. There are over 18,000 different tax codes related to payroll across the nation. Each local State has their own different rules and regulations that need to be complied with and there s always the Federal regulations as well and so payroll is its own silo in that sense that you have to be very up to date with each thing that comes along with it. The other thing is it creates more work. Obviously when you re talking about this amount of tax code you need to be at least somewhat aware that it can create more work for you. The frequency of payroll can then create a certain amount of work you may be worried about getting into and with that you re worried about creating additional overhead and hiring additional staff. Things that if you already have your business operating in a certain fashion that you may be risk averse to actually implementing this new revenue stream. On the same wavelength that if you already have an effective practice, you don t want to make a mistake in something new. There s no room for errors. You don t want employees to not get paid on your behalf and that being an issue. On the same account too, the idea of taking on the liability that comes along with payroll and all these different things I ve already touched upon is something that might be too much or a little daunting. It s something that people typically don t want to take on that risk. Also, the last thing I hear a lot is just the idea that if you are someone who has built your firm from the ground and done a lot to become your own business owner, you don t want to be chained to your desk. What that means is payroll is really a very consistent and frequent thing that needs to be done for a small 1900 Preston Rd 267 PMB 95, Plano, TX Page 3 Copyright 2015

4 business. So the idea that you have to consistently provide this service to the clients and be the one doing things, you don t want to get stuck where you don t have that flexibility that you actually worked hard to maintain and create, you don t want to lose that flexibility to where if you did need to leave or do something else during a certain period that you d not be available to your clients if they needed help. So it just creates more anxiety from that approach. With that we re going to go ahead and ask our first polling question. As I mentioned earlier, we do have 3 polling questions and this is one of the first we have 4 polling questions and you need to answer 3 of them sorry. This is the first one and I believe the question has already been launched. What this is, we want to get an idea of where the audience stands and where you re all at in terms of payroll. So just understanding what that is I can spend more time on certain things as well as gloss over certain things and it would be good to get some context on where everyone stands. Everyone loves your voice Jake. Everybody what? They love your voice. Oh awesome! I m glad to hear that. Someone wants to know if you re single? Uh-oh well where does that person live? I m flattered and you can t see me but I m blushing right now. I think 5 more seconds for this polling question and we can close it and share the results. Who needs this polling question for CPE? Here we go and we have 59% if you want to be detailed about it who offer full service payroll and so we do have some options. You can see where everyone else Yeah that s great. 13% doesn t offer payroll and 11% refer it out and so a lot of varieties there Preston Rd 267 PMB 95, Plano, TX Page 4 Copyright 2015

5 Okay perfect and definitely I think we have some content for each of those groups. It s good to know everyone offers full service payroll or a large majority of you do. I ll try to touch on that more than the other places maybe, but don t feel neglected if you voted for the other areas as we will definitely provide some useful information there. So we re going to jump into why you would offer payroll. This obviously won t be as applicable to those people already doing it but I still want to go through it and spend some time here. Ultimately this slide here is like that all encompassing slide and there are 6 million small businesses out there and ultimately running payroll is a mission critical function of their business. Employees expect to get paid and that s why they typically work. With over 75% of these businesses already working with you in some capacity payroll is an opportunity to essentially grow your existing relationship with them. They may not be working with you in payroll yet, but the fact is they re interacting with you and so it s a way for you in a very logical and relatively easy way expand that relationship. On the same wavelength on why you would want to do it is the idea that increasing your client retention it s always easier once you retain a client to grow your client relationship rather than having to get a new one. If you already have that relationship it s a lot easier. So the idea of payroll coupled with your existing services that really make you a stronger business advisor for this client, mostly because you re now an invaluable part of their client s business and you re the one who has more insight into their overall picture. Ultimately, you re move involved in their day to day and I mean payroll is an operational portion of the business and it s not just something they may consider back office in the sense that you re actually going to be working with them it s kind of the counter point to what I mentioned earlier about not having flexibility. So the fact that you re talking to them more often allows you to have more touch points and really get to know them better as well as see opportunities to grow your relationship further. On the same note payroll is a sticky offering because they need their employees to get paid. People expect to get paid on time and if you re the one providing that mission critical service to them, they will respect you a lot more Preston Rd 267 PMB 95, Plano, TX Page 5 Copyright 2015

6 Then switching payroll products can be difficult and it s definitely something we re depending on the time of year. A lot of people don t want to take the risk of switching and then not having any lapse in service because again its mission critical to pay your employees. So if you re the one providing the payroll service, they are a less likely to leave you, in general, for all these other services you re providing because you are the one responsible for this important function of their business. Overall again you re just a stronger advocate. From a very straightforward and logical standpoint, adding a new service line to your business does allow you to grow your bottom line. You re making more revenue and if you re not offering payroll you can switch from more of an hourly based pricing structure which I ll touch on more in a little bit, but you can actually do value based or bundled pricing which gives you the more services you have the more easily you can put together a flat rate at a standard price. It just makes your relationship a lot better with your client because you can tell them a price up front and offer them a full suite of services. The other idea and rooted back to those common objections is that people think there is a lot of time and costs that come along with starting a payroll service. We ll touch on how you can do that with modern tools because I think it is an effective and efficient way for you to think about getting payroll into your firm. You need to leverage technology and it will make your life a lot easier just ultimately not taking on the complete burden that comes along with those objections all on your own shoulders and so really using technology to bridge that gap. There is really little cost that comes along with that because most tools out there now aren t based on a flat rate and you can actually just buy them based on the number of clients you have. So it s very variable and the cost will be contingent on the number of clients you have doing payroll through your firm. Ultimately again there you don t need to hire a bunch of additional staff because that technology should do most of the work for you. Offering payroll also is a really good way to tangibly be proactive for your clients. If you re already helping them with many different things such as taxes and bookkeeping, you can actually be proactive in the sense that you can bring something in easily to the table that will allow you to grow the relationship with them and shows you have their best interest at heart and you re not just this person doing their books. You are someone who is a trusted advisor and really knows hey I can bring something to the table for you that will cut your cost of 1900 Preston Rd 267 PMB 95, Plano, TX Page 6 Copyright 2015

7 doing payroll as well as making things more efficiency, plus provide a better experience because I m going to be here to help you. So that overall experience should strengthen your client s experience again. That s huge. Again what we touched on earlier is that clients don t like spending their time doing these sorts of things. So if you can bring a easy tangible way to the table that they can respond to well because you re taking something they don t want to do anyway off their plate, they can go out and grow their business and ultimately it helps remove headache from their overall business and you can help them make better financial decisions because again you re more involved overall and just being proactive shows you re someone with that foot forward and really their best interest at heart. So we re going to move on here with more tangible ways of how you can effectively implement payroll into your practice. Pricing and packaging is one of the coolest things that comes along with that. so we re now going to roll into our 2 nd polling question and again it s to provide context as I go through this information to understand how you re currently pricing payroll or, in general, if you don t provide payroll at all and it sounded like a majority of you do and so this is a tangible question. But if you don t price payroll then you can talk about whether you bundle or what services you provide in general or if you just mark things up or bill hourly. We do have a couple of questions. Do you want to wait until the end on these Jake? I can talk about them at the end. I think my colleague is trying to answer them as they come in. she s doing that and if there are other questions we ll have a bit of time at the end to talk through some of them. Okay and since you guys need this polling question for CPE if you don t offer payroll services it doesn t look like there is really an answer you can choose, so why don t you just choose the first one and Yeah what I d suggest Because you re going to need to get credit and so you need to answer this to get credit Preston Rd 267 PMB 95, Plano, TX Page 7 Copyright 2015

8 Yeah and sorry I wasn t very clear when I explained that but sometimes when I go through a presentation like this I usually say do you bundle and so instead of saying like the last option of I bundle payroll into other service packages. Forget payroll and it s like I bundle my services or #3 I bill hourly. Usually those 2 buckets are the most common even if they re not doing payroll and so it is usually #3 or #4 is kind of the answer. Okay I think we can close this question now and see. Alicia says she does a bit of both and for some clients she passes on cost and others she charges per payroll run. Awesome! Here are the results, about a third of the people bundle and then like you said the bottom two are the most frequent I guess bill hourly and pass the cost and then not many people pass the cost with no mark up. Yeah. Yeah. But there is 10% who could improve and so there you go. Cool and very good context there. I m glad to see it is pretty split up and we re going to talk about bundle pricing primarily here just because ultimately that is the pricing trend that I think a lot of people are trying to be more modern in the way they run their practice. Really the reason for that is just the idea of becoming a trusted advisor vs. a commoditized service. Ultimately if you re able to provide them a packaged bundling then you re now offering them such a full suite of services that again you become a stronger advocate for them and you re providing a much higher value because ultimately you re touching there business in so many different ways. So you have the ability to package your service by individual client needs and that s a big thing. Again, it proves you have their best interest at heart the fact that you can come up with a customized package for them and that way they know you re truly listening to what they need and that just reinforces why they are working with you in general. Then telling them a price up front is powerful because they re never going to be surprised, you re never going to have to worry about something on the back. It s 1900 Preston Rd 267 PMB 95, Plano, TX Page 8 Copyright 2015

9 like when you go to a restaurant you know what you re paying for a meal because you see the price on the menu. It s not going to be where billing hourly can create conflict because your clients don t necessarily know the work it takes for you to do what you re doing. It s why they hire in you in general; however, they do understand how time works. The fact that you say it took me 5 hours to do this, some people not the best clients but some clients can question you on it. It just creates conflict because they re getting surprised in a certain way of looking at it on the back end of what you re actually charging them. So being more transparent and coming up with a packaged service, a flat rate price can be a powerful thing because your clients know what they re getting and know what they re paying you for and feel good about it because you re offering them many different services to justify the one flat rate. Then for some specific pricing, this last note of the do-it-yourself full service, it s just a matter of segregating out your responsibilities with your clients and whether you re setting a client up to do the payroll themselves or a referral relationship or you re actually doing the full service offering, which 60% of you are doing right now and so you would understand, I d imagine, how that plays out. That rolls into the next question of when you re coming up with pricing, payroll or pricing in general you need to figure out what that service level actually is. So when you look at payroll there are a few different things that I like to break it down by. One of the initial ones is who is going to set up a company in the new system or who will get them set up? A lot of modern systems now give you the ability to segregate and separate the data entry responsibility and what not. So you need to figure that out from the beginning and be very clear with your clients and make it seem as simple and easy as possible to start using you because that will make the transition a lot easier and the overall customer experience a lot more positive. Handling initial setup is a big one and then also moving forward once it is set up who is going to maintain that data control? Who will be the one handling employee changes such addresses, their bank info, whatever goes along with the payroll process in general? Similarly, who will be setting up their elections of benefits? 1900 Preston Rd 267 PMB 95, Plano, TX Page 9 Copyright 2015

10 There is definitely a thoughtful discussion any time you re approaching a client in this manner, just because you want to understand what they want and make sure you can run that service. Again, you can do that in a simple way and we ll show you that a bit later. Along the lines of pricing payroll, you can do it in many different ways. In terms of the bundled pricing, this is one of our partners we work with and they ve done a good job at doing this. They have this posted directly on their website where they actually come up with some pretty standard pricing. If you don t want to come up with that customized package for everyone you can have a very standardized marketing and sales plan for your clients. You can create different tiers and then you can give the same restaurant menu effect where the client can come to your website and see exactly what you offer and they ll know ahead of time what they are paying for and how much because you re really demonstrating the value because ultimately you re okay with the price and very transparent about it. So the Bronze, Silver and Gold is really just an example of one naming convention. What I always recommend here is just coming up with different packages that really tie into your branding and what you ve done to establish it. So what people have asked me questions on in the past and I ll touch on that is do I have to post the actual dollar amounts on my website? I would say you don t have to actually have the dollar amounts. I think what the more important message is here is to have the different tiers and standard structures. If someone wants to find out more information they can always call you. And then you can talk to them specifically about what each tier falls into. Then someone may nod and it gives you the ability to come up with that customized package if that s what you wanted to do. The idea is just being flexible enough that you re not going to turn customers away, but being standard enough to where a client isn t going to be intimidated by your approach. They will understand where you re coming from and want to work with you because you re being transparent from the beginning. The next thing I wanted to touch on is how to approach your clients and actually talk about how to effectively offer payroll to them. That s a big thing is you may come to the conclusion you want to start offering payroll when is the best time to actually talk to them about taking over payroll for their company? 1900 Preston Rd 267 PMB 95, Plano, TX Page 10 Copyright 2015

11 If you haven t picked up on the trend yet, every time we start a new section I usually roll into a polling question. So with that this is our 3 rd question and again it s to get an idea of where everyone is at and understand and also so you all get your CPE. Do you already have a plan in place to discuss payroll with your clients? I would imagine from the 60% of people already doing full service that this is a very common thing for you, which is awesome. Hopefully we can maybe talk about best practices for that, etc. I think the package idea is revolutionary if you haven t seen it before, I m glad you showed those examples or that example. It definitely makes a good experience. There are our results and a little over 1/3 rd informally do, 20% do but there is room for improvement. 45% total don t have a plan. Great and so hopefully this will be useful to everyone. So whenever you re talking about approaching your clients I think the most practical way to start that internal planning is to indentify your client s needs or identify the specific clients who are the low hanging fruit in a sense. It s a sales term but it s the idea of which clients are you working with that you know you can start offering payroll. So maybe you identify they re doing payroll manually and so there is some inefficiencies internally for them. If they re paying their employees by cash or check, you can introduce direct deposit and again a much better way of doing it. These are very simple things that really can make a difference in a business owner s operations. If they re manually doing payroll data, if they re having some compliance issues of employee vs. contract classification, things again show that you re a business advisor and you re in tune with what their needs are and really you re willing to help and make sure you can help them. If they want more personal service or again if they just want to grow by working with you in general then they will likely want to work with you for a different service line because you have that strong customer relationship already. If they are already asking for tax advice on bonuses or benefits it s a very easy way to naturally lead into that hey if you re having this question anyway I can go ahead and do your payroll all together and we won t need it will save you time and 1900 Preston Rd 267 PMB 95, Plano, TX Page 11 Copyright 2015

12 energy because we won t have to have this discussion because I m going to do it for you anyway. Then another simple one and this may even be the best way to start is to look at your client list and had anyone talk to you about a tax notice or tax penalty they received in the recent past. That s something that screams they need help. They obviously have had compliance issues and you can be like look I can prevent this in the future and so let s talk about potentially working together for payroll. When you actually talk about getting the conversation started this is something for those of you who don t have a plan to actually do it. You probably have a plan to have your regular check ins. I mean most service providers do have that. So if you have a monthly or quarterly check in and talking about the services you re doing for them that s the time when you can be like, hey I want to talk to you about this other new service line I m going to start implementing and I d like to know if you d be interested in trying it out and seeing how it goes. If you re already doing your service and fee negotiations, this is a great time to if you want to start moving towards the bundled pricing you can make that transition into it and just say I know I m doing hourly billing but I do want to do this bundled pricing approach and here are my services and I m offering payroll and it s encoupled into it and I know again if you identify them as someone with a need you can then tie it into the overall fee discussion. Tax season again we just finished that and you probably had conversations where you can start to talk to them now as you re a familiar face and they should respond. Then at a very simple level, if you don t talk to a client for a while it s something we re you can send them an and set them up with a meeting, go to lunch with them and try to identify new pain points they may have and payroll being one of them. That way you re not distant and again it strengthens that client relationship and makes sure you retain your clients as long as possible. Once you have that meeting booked, a real easy way to identify and you may have already high level identified if you think they have a need and you start to scope out which clients are a best fit. So once you schedule the meeting and once you re in the meeting a real easy way to start to get them to identify they have a need is by asking them questions. If you ask them questions, the client can come to the realization they need help on their own Preston Rd 267 PMB 95, Plano, TX Page 12 Copyright 2015

13 So this list of questions here is really a standard list and you can download these slides and use this as a reference for later. Ultimately one I would highlight is are you happy with your current payroll provider? Or how much time do you spend on payroll? It s a big thing and there is a very easy way to justify it. Why would someone pay you to do their payroll? How much is their time worth? How much is their energy worth to their business? If you can take that off their plate how much money could they be making if they were contracting you to do their payroll? So it is a way to initiate a conversation and get established that you have their best interest at heart and hopefully you can help them. This is another example and Vanessa Cruz is someone that we work with here and one of our strong partners. She s an Intuit Pro Advisor and definitely has done a good job at utilizing tools to grow her practice. She does bundled pricing and she talks about payroll with every client she works with and uses ZenPayroll as her preferred tool and along with all these other tools of choice that she has, she s able to offer she does a lot of work with a lot of clients and she says that payroll is one of the stickiest offerings she has because again you re constantly engaging with your clients to where they trust you because you re the one helping their employees get paid which is mission critical again. Ultimately, being able to do that at a bundled pricing approach is something that she thinks is really powerful. Like I said earlier, it s something that really changes your dynamic where people aren t counting hours and you re in that trusted advisor on a real level. So we re going to move into talking specifically about ZenPayroll so that way we can show you what we have to offer as well as give you an idea of how we can help you. What I m going to do now is give you a brief run through of what our product actually looks like. So a quick demo and I won t go into full detail here and if you want a more detailed demo you can reach out to us and our contact information will be shared. I m going to show you what a modern tool looks like and only spend about 5 minute here, so not too long. But putting an actual product in front of you will make things a bit easier rather than me just telling you about it. So what you re looking at here is what we call our Accounting Partner dashboard and any accounting partner we work with gets this log in. So when they log in they will see all their clients from one consolidated place. One thing I will 1900 Preston Rd 267 PMB 95, Plano, TX Page 13 Copyright 2015

14 highlight is we built the system to be very simple and intuitive. So if you re looking at implementing payroll for the first time for that segment of the audience you won t have to worry about training. Once you get up to speed it s very easy to do. We do all the local, State and Federal filings as well as make sure those payments are paid on time and in compliance and so ultimately all you do is run a payroll. It s very simple and easy to do. Then for those already offering full service payroll to their clients, we ve made the system simple and easy to use so that you can streamline your operations and really save time and energy on the actual payroll component of your practice. Ultimately, you re not going to have to learn a new system if you decide to work with us. It s easy and especially if you ve been doing payroll for a while you ll pick up on it quickly. When you are looking to actually manage payroll for a client, really you choose your client you re going to work on and click in here and essentially we re going to bring you to what we call the Single Company dashboard. This is the Home page where you ll be able to see all your to-do items, your important dates like running payroll and running payroll is the most common one. Again, it s simple and intuitive and you re going to want to run payroll as a to-do item and simply click on the post it note and that will then take you into a screen that shows all the employees as well as all the different compensation amounts. You update hours if that s something you need to do and it will update the gross pay and if you need to enter any earning amounts you have that ability there as well, you simply click on the box and enter whatever amount is necessary. You can process reimbursements; you can pay people by direct deposit or check. We are a paperless company so we don t print and distribute checks but we give you the ability to pay employees by check if they don t have a bank account setup. I ll show you what that looks like in a minute and we ll provide you the net check amount to actually write and give to the employee. After you ve gone through this you say Continue. One last double check for accuracy purposes and hit Continue again. You do have the ability to track vacation and sick days. I don t have it set up right now but it s very simple where any employee enrolled in your vacation/sick policy simply just put in the number of days that were actually taken during this pay period and it will update their balance. It s easy and simple to do. After you ve updated that our system takes a few seconds to calculate the different amounts including the check you need to write. We re going to show 1900 Preston Rd 267 PMB 95, Plano, TX Page 14 Copyright 2015

15 you the net check amount that needs to be written to the respective employee and that way you can do it at this time and you can click here and it will generate a PDF. Then that allows you to print onto Check Stock. You would then be able to click through this and essentially you re done and this is just a review screen showing the total employee direct deposits that we re going to take out of the employer account as well as the employee/employer taxes that we re also going to take out of the employer s bank account. There is some more data to review down here at the employer company level, but ultimately that s really all it takes to run a payroll. It s very, very simple and takes a few seconds. It shows if you do this ZenPayroll will handle all the filings as well as all the tax payments when they re on time. You don t have to log into our system and approve anything when those filings are due. We re going to do them on your behalf. Now if you ever wanted to review the forms on the back end after they re filed, you can always go in here and we have an online repository of those forms available to you. This is a demo account and we ve never actually filed any quarterly 940 s or 941 s or anything like that for this demo account but if I had they would live in this tab. A couple of other things I always point out along with our system is we do integrate with a number of accounting software s and as you can see QuickBooks Online and we also integrate with QuickBooks Desktop. The online integration was very seamless and it s a great connection there and every time you run payroll through our system we ll automatically post the journal entries to the actual QuickBooks software and that way nothing is ever missed on your books because we ll post that expense so you can reconcile the bank account and cash movement accordingly. Another feature I always point out is called Auto Pilot and that s something that is similar to what you might experience with an auto pay for a bank account. Essentially if you set this feature up we re going to automatically run payroll at the company s payroll schedule based on what you put into our system automatically. We ll send you an the day before we run payroll to say hey if you have any changes log in and make them, otherwise we re going to run payroll and pay your employees and withhold the taxes and make those tax payments and file the forms for you Preston Rd 267 PMB 95, Plano, TX Page 15 Copyright 2015

16 So if you have any smaller companies that maybe don t have a lot of changes period of period, this is one way to actually have payroll run without spending any too little effort at all just because essentially our systems automatically do it for you. Employee information will all live on the Employee tab. Another cool thing we have is a feature called Employee Self On Boarding where when you have a company that maybe has a lot of turnover, you would be able to put the employee information in here and their compensation amount and just click this button that says yes, the employee requesting their details. We will shoot the person an and they will have an account in our system and they will be able to log in and put in their personal details such as their social security number, their home address, tax details such as W4 for allowances, etc. and then their payment details such as bank account. So that data entry responsibility will no longer fall on your plate to put in nor maintain. It s all going to be there for you because the employee will put it in. it makes that maintenance component that people think is a headache with payroll it alleviates that all together. Another thing I ll show you here is what the employee portal looks like. Every employee paid through ZenPayroll gets their own log in account. Now they have the ability to again I touched on it before, this is how they update their bank info, their allowances as well as home address. If they move they don t have to bother you to do that and it s all on their plate and something they can take responsibility for. So you re empowering them to go ahead and do this and you re reducing your time. They can pull pay stubs, look at any forms W2 s and you re not responsible for cutting and distributing those W2 s they can go online and pull those, as well as, go ahead and view the other forms here as well. That is a very high level overview of the system. If you re interested in getting more details you can reach out to me directly. But I m going to flip back to the slides now and that way we can move on with the presentation. This is a lot of what we talked about for ZenPayroll, payroll today vs. modern payroll and I showed you that so we ll move on. Ultimately, our clients we do take on the responsibility of ensuring compliance and so we definitely do a great 1900 Preston Rd 267 PMB 95, Plano, TX Page 16 Copyright 2015

17 job at making sure people are and you can see the stat here. We ve done a good job and I touched on this that we integrate with many different accounting software s as well as other contractors such a T-Sheets who is a very strong partner and we re proud to work with them and happy to work with them. Ultimately, it s going to reduce the manual data entry and lowering the operating costs. I already gave the demo which was exactly what I wanted to show you. It s really more the point than the slides themselves but going back to more specifically how we stack up to some of the other payroll providers in the industry we re located in San Francisco and have an amazing customer satisfaction rating. What our partners do and why they choose to work with us is because the ZenPayroll brand and what we ve done really gets to positively reflect on their firm because they ve chosen us as their preferred partner. Any time the customer experience is a positive thing and you re the one responsible for introducing them to that customer experience, it s a way to show again that you have their best interest at heart and ultimately you re the one that has their business in mind and want to help them however you can. Again we make sure all the payroll compliance issues are done right. You can see the different stats here and I m not going to go into all the specifics on this. But we calculate and deduct all the taxes and make sure they re all paid on time and all you need to do is go through that simple work flow I showed you earlier and that s actually run the payroll period of period. This is what our actual pricing structure looks like for our product. I won t spend too much time on here but it s very simple and transparent. We, ourselves, believe n that transparent pricing and so we have it posted on our website. It s where you know what you ll pay for when using our service. We do have volume discounts at the bottom that you can see for our partners. Any time you have multiple clients with us we want to make sure we re thanking you for that and that s where the different tiers come into play. I will say that we also have a referral program that I am happy to give more information about if you re interested. It s something separate but if you are just in the relationship of introducing clients we have a structure for that as well. A little more about our partner program specifically, those volume discounts you can see there and we do offer free payroll for your practice. This is a great way to 1900 Preston Rd 267 PMB 95, Plano, TX Page 17 Copyright 2015

18 get situated and comfortable with our system. We want to make sure you understand what you re going to be using for your clients before you actually do that and so we give you free payroll for your practice. As long as you add clients or using our products for your firm we will give you free pricing indefinitely. It s just a matter of if you re an active partner with us we d be happy to do that. You do get a dedicated account manager. I am one of those dedicated account managers and I work with a number of clients. I am definitely happy to work with any others and I totally discuss with clients how to effectively implement payroll into their practice. If you do decide to work with us there would definitely be a possibility that we d be able to work together and obviously I d love to do that. We definitely are always providing different marketing partners and we want to help you roll out payroll to your clients effectively to show you are a ZenPayroll partner and you get that service going. Hopefully that marketing will help you. We have a team that can help transition any of your clients from different providers and that way that move is often one of the bigger pain points and people think it s a lot harder than it really is. We have a team that can do it for you. We also give you the ability to be billed directly or pass on the fees of our service. We give you the flexibility to really utilize our product however it best fits your practice. It s something that you really again want to be thoughtful about on what makes the most sense. With that we re going to roll into our last polling question here. If you would like to learn more, obviously let us know we want to reach out to you about that it would be great. I d be happy to talk to you on a 1 on 1 basis about potentially implementing payroll for the first time or if you re already offering full service payroll and interested in ZenPayroll I d be happy to tell you about how we do stack up to some of our competitors more specifically on payroll on the product side and see if we may be a better service offering. If it s not for all your clients it may be for a few or whatever makes the most sense. Ultimately, it s all about finding that good fit and if you think ZenPayroll might be a good fit for you I d love to talk to you more about it. Let s give them a little more time on this polling question Jake. I wanted to put in my 2 cents here. I ve been using ZenPayroll for about 1 ½ or maybe 2 ½ years now and if you haven t visited them in a while they do now and please correct me 1900 Preston Rd 267 PMB 95, Plano, TX Page 18 Copyright 2015

19 Jake if I m wrong but you have a 2 day turnaround, so you can do payroll and in 2 days is when it will affect the bank account. I will say you re actually part of a Beta group for that and I will correct you on that. We re walking on that and that s a top priority for us. I m glad you mentioned that and it s something where right now on a standard basis we re offering a 4 day but we are rolling it out slowly because we want to do it in a responsible fashion. We do have a Beta test group that and you actually are helping us a lot with that because it s the idea of seeing what s working well and not so we can build our system internally to handle it correctly and make sure we re doing it in a good fashion for our customers. So it is something that will be largely available to all our clients in the very near future but it is absolutely something we re working on. The other thing and 10 more seconds on the polling question, but the other thing I wanted to mention is I have a very small business client and she pays her employees at a different time than she pays herself. She runs 2 different types of payroll. So we put the employees on the regular payroll and every time she runs a paycheck for herself she runs a bonus payroll. There is no extra charge to run a bonus payroll with ZenPayroll and correct me if I m wrong Jake. You re right. But wow is that flexible and she s the weirdest client and I m sure you all have weird clients when it comes to payroll but 2 days before her college loan is due is when she pays herself. So there is absolutely no rhyme or reason to it but you can go into the bonus payroll and it works like a charm. It took me a couple of times to show her how to do it because there are a couple of extra buttons to push, but she takes care of herself and it s a really good success story for you all I think. Awesome! That is awesome to hear definitely. Yeah and the other thing we recently announced is we are officially nationwide and so we do offer our services to all 50 States which is very important to point out. The self on boarding is huge too. It is really smooth. Awesome. All right Preston Rd 267 PMB 95, Plano, TX Page 19 Copyright 2015

20 Perfect and with that I do want to leave you guys and I think Chrissy has been going through all the questions and a couple of things again about the pricing that it looks like people are asking about it. Our pricing includes there are no hidden fees. That $25 flat rate plus the $4 per employee and that includes as many payroll runs as you want to run, as well as all the monthly and quarterly payrolls. It really doesn t matter how often you run payroll and basically it s just that flat monthly rate plus the variable head count rate. You can run it literally every day of the month and it still is that same $25 plus the $4 per person. What I m going to recommend now is we take the conversation over to the Exhibit Hall. Jake that s your last slide right? Yes it s the last slide. Fabulous and now what I d like to do is go back into Ning and then the Exhibit Hall and let s take a look and see where ZenPayroll is and there we go right at the very bottom. I d encourage you guys to jump in and create some questions for them, anything that didn t get covered. I know there were a couple of questions about timing on tax deposits but we can take that to the Exhibit Hall and have them post your questions and let them answer them on the Exhibit Hall. That s perfect. Type in the one tip you learned from ZenPayroll and I want to this slide here blew me away because I want you to realize this identifying the clients in need and Michelle I hear you but you can turn this into a checklist and this can be a payroll checkup. Are you doing everything legally? Paying employees in cash can actually land you in jail in some States. So this is a great checklist along with some of the other points on his slides that you can turn into a service and charge the clients. Isn t that cool? Yeah and you guys like the 3 packages as well, the slide where it showed the 3 packages and that gives you a transformational idea on what you can do with your own practice, not just for payroll but for some of your other services. Michelle? Michelle: I wanted to add one thing, you mentioned going into their booth in the Exhibit Hall and posting questions in there. It seems we have a chatty bunch of people 1900 Preston Rd 267 PMB 95, Plano, TX Page 20 Copyright 2015

21 and we ve broke the chat room. I think we overwhelmed it and it s slow to load and respond. I think posting questions in the Exhibit Hall on their booth is a very good idea. Also some people are chatting under the Networking tab and creating discussions under Networking and starting to post things in there. The one thing to keep in mind with that is once you do that you start getting s for all those. So you might quickly need to create a rule in your folder or delete a bunch of stuff tonight. But in lieu of the chat area people are using some of these other areas. I think the Exhibit Hall would be a great place during the webinar where you can talk and post things in there as well on their Booth page. Exactly and later tonight or tomorrow we ll be posting the winners because people are giving away things if you attend the sessions. We will want you to go back to those Exhibit Halls for the sponsors who donated prizes. So that s another reason to visit the Exhibit Hall. Jake any last words? Michelle: No and I definitely appreciate the time and it s been great. As always any time we get to do this it s great. So talk about it and my contact info is there for anyone who is listening to feel free to reach out to me. I d be happy to personally answer any questions as well. I know any time you re looking at doing something new there s always a bit of anxiety, so definitely let me know what I can do to help. I want to be here for everyone out there. Fantastic and thank you so much. We have a full 29 minute break. Lunch is different for everyone and so I think we re in good shape for the West Coast people and it s almost dinner time for the East Coast people. Anyway you guys have a chance to 28 minutes left so I ll shut up and let you go on break. Bye everybody. Bye Preston Rd 267 PMB 95, Plano, TX Page 21 Copyright 2015