Most payroll requirement documents are long and do not separate the vendors, because they ask about calculation and every serious product calculates correctly. The questions that actually differentiate are about jurisdictions, who files, what happens when something is wrong, and what leaving looks like.
Ask the questions that eliminate
Which jurisdictions do you file in directly rather than through a partner, name them. Who is liable for a penalty caused by your error. What is your process for a correction after a submission. How long is historical data retained and in what format is it returned. Four questions, and most shortlists halve.
Require a parallel run in the process
Not a demonstration, a parallel period on your own data with your own awkward cases: a mid period starter, a leaver, somebody on two rates, a bonus. Scoring the differences that emerge is worth more than scoring a response document, and vendors who decline have told you something useful.
Score implementation and exit, not only the product
Who does the data migration, how year to date balances are carried, how many parallel cycles are included, and what assistance is provided on exit. Payroll is the hardest system to leave, so the exit terms belong in the evaluation rather than in the contract negotiation afterwards.
Questions people ask about payroll rfp
How long should an RFP be?
Short enough that vendors answer specifically. Long questionnaires produce boilerplate and reward the vendor with the largest bid team.
Should price be requested up front?
Ask for pricing on your own numbers including your worst month. List prices are not comparable across pricing models.
How many vendors should be invited?
Three or four that already pass the eliminating questions. More produces meetings rather than information.