How does having a SOC 1 report create a competitive advantage for payroll providers and PEOs?

Service providers with SOC 1 reports are confident in meeting new vendor criteria above their competitors, helping resellers differentiate their offerings and set higher benchmarking standards.

Why should resellers require a SOC 1 report from service providers?

Reasons include gaining a competitive advantage over similar companies without a SOC 1 report, meeting contractual requirements, demonstrating internal controls benchmarking, and achieving revenue growth through increased clientele.

SSAE 18 Competitive Advantage for Payroll Partners

Payroll and HR service providers, including PEOs and payroll companies, can gain a competitive advantage and increase client trust and revenue growth by partnering with service providers who have undergone SOC 1 audits, thereby demonstrating compliance with Sarbanes-Oxley requirements and setting higher industry benchmarks for security and management controls.

SOC 1 Competitive Advantage for Payroll Partners Selling Workforce Management Software

Financial and HR services providers such as PEOs (professional employee organizations), payroll providers, benefits administrators, HR services companies, and others can attract more business by leveraging and understanding how SOC 1 reports from service providers give them a competitive advantage. Both public and private companies are often held to at least some, if not all, portions of the Sarbanes-Oxley mandates (Sarbox or SOX). Encouraging service providers to undergo a third-party SOC 1 audit demonstrates to potential clients and business partners that they have passed complex management, security, and readiness reviews. Service providers with SOC 1 reports are confident in meeting new vendor criteria above their competitors. Resellers and partners who build their service business around choosing providers with available SOC 1 report letters can set new benchmark criteria and differentiate themselves from the competition.

Competitive Advantage

Payroll and professional employee organizations gain a competitive edge over companies not working with a service provider who has completed the SOC 1/SOC 2 audit and has the letter of recommendation. Resellers who recommend making the SOC 1 report a requirement for potential clients can raise client awareness, set higher benchmarking standards, and increase revenue growth by providing extra assurances of compliance.

Educating clients about these standards increases client satisfaction by providing a sense of security over sensitive information. The "Public Company Accounting Reform and Investor Protection Act" (SOX) is a United States federal law that sets new or expanded requirements for all U.S. public company boards, management, and public accounting firms. Some provisions also apply to privately held companies, such as the willful destruction of evidence to impede a federal investigation.

Service Organization Control 1 (SOC 1)

The SOC 1 report provides assurance regarding the controls at a service organization relevant to the user entities’ internal control over financial reporting. Ensuring that a service provider has internal control over financial reporting helps clients know that the provider understands SOX and internal controls that may affect their clients’ financial statements.

Knowing that your service provider has obtained a SOC 1 report differentiates your offering by ensuring the establishment of effectively designed controls and providing your customers with peace of mind when engaging with your organization.

Reasons to consider changing service providers or inquiring about your current provider's plans for obtaining a SOC 1 report include:

Gaining a competitive advantage over similar companies without a SOC 1 report
Meeting contractual requirements
Demonstrating internal controls benchmarking
Achieving revenue growth through increased clientele

Workforce Software

Swipeclock is a leading provider of cloud-based integrated workforce management software solutions, including automated time and attendance, advanced scheduling, and leave management capabilities. Swipeclock has completed SOC 1 by an approved CPA firm. The company’s products—TimeWorksPlus, TimeWorks Mobile, and TimeSimplicity—enable more than 1,000 partners to help their clients manage their most important and expensive asset: employees. Swipeclock’s workforce management products help over 30,000 businesses lower labor costs, comply with regulatory mandates, and maximize profits.

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