There are all kinds of reasons that your management team may need to change payroll providers. Regardless of why you're making the shift, it will impact the rest of your human resources (HR) administration efforts, and you need to navigate the process carefully.
To help your management team, this guide covers the essentials of changing payroll providers.
Reasons to Switch Payroll Providers
Your employees are one of your business's most important assets, and you want to ensure they get paid correctly. You also need to ensure that your payroll is administered properly, for the sake of your business. Here are some of the most common reasons management teams change payroll providers:
Vital tax mistakes
Tax errors can upset your employees and subject your business to fines or penalties.
Lack of proper systems or software
If the payroll provider doesn't use the right software, the risk of errors increases.
Poor customer service
You're paying for a service, and you deserve to have a payroll administration professional who responds to your requests promptly and professionally.
Issues with timeliness
Whether you're waiting for paychecks or tax reports, you need them on time.
HR is constantly changing world. Lack of innovation and stale software can burden the entire team and handcuff your business.
If you are dissatisfied with your payroll provider in any way, you may want to look at alternatives. You need a payroll provider who can provide top-notch services so that you don't have to worry about it.
Benefits of Switching Your Payroll Provider
By switching your payroll provider, you get the chance to find someone who truly meets your needs. You can leave your current challenges in the past and look forward to a timely and organized payroll administration process. However, to make this possible, you need to choose your new provider carefully.
Steps to Take Before Switching Your Payroll Provider
To navigate the switch to a new payroll provider as seamlessly as possible, check out these tips:
Determine what you need that your current provider doesn't offer.
Consider your pain points. What is upsetting you about your current payroll company? Do you want additional services? A more convenient workflow? Better customer service?
Know specifically what you like and don't like about your current payroll company and make a wish list for your new provider.
Reach out to prospective payroll companies. Talk with them about their process — how do you get the hours and employee data to them? What are the logistics?
Ask about other services and their ability to scale as your business grows.
Ask about cancellation policies with your new provider. Can you cancel at any time or do you have to provide notice? Are there cancellation fees?
Before signing a contract, make sure that you understand the expectations of the new company. Understand their expectations for you as a client before you commit to their services.
Pick a good time for your company to switch. The most convenient time to switch payroll companies is at the end of the year, or the end of a quarter. For instance, you may want to have the existing payroll company do your quarterly reports and monthly withholding deposits, but at the same time, you can get the new company rolling on the paychecks for the current quarter. However, a quality payroll company can help you navigate the transition at any point.
Prepare company and employee data. To process your payroll, the new company will need info about your company's EIN and EFPTS account. They will also need details about your employees such as their names, Social Security Numbers, and withholding details. Gather all these details so that the new company can get started.
If you're ready to switch payroll companies, we can help make that process easier. Every day, people are expecting more from their payroll companies. Forced with having to do more with less, business owners want true HR partners who look out for their best interests.