You have decided it’s time to switch your payroll provider. After accessing your payroll needs and researching your options, you have settled on a solution. It should be smooth sailing from here on out – right?
Not so fast. Switching payroll service providers can be a big move for your business. Whether you’re doing it to save money, simplify your work, or make sure everything is accurate and by the book, it’s important to handle the transition wisely. Not to worry—we’ve got three key things to help guide you through it.
Review your payroll needs – again
You likely did the research to find the payroll provider that meets your needs. However, now is the time to be extra certain this is the right match. Before beginning the onboarding process, ask yourself these key questions:
- How many people work for you? This will affect how much payroll work you have to do.
- How often do you run payroll? Is it every week, every two weeks, or once a month?
- Will the payroll provider be handling payroll tax and compliance issues on your behalf?
- Do you need any extra HR services, like tracking employee hours, managing benefits, or giving employees online tools to help themselves?
- Have any of your payroll needs changed since choosing this provider?
Plan carefully for the switch
Changing payroll service providers requires a solid plan to avoid problems and keep everything running smoothly. Here’s what to think about:
- Moving Your Data: Work with your new provider to move your employee info, payroll history, and tax details without any mistakes.
- Timing: Pick a time to make the switch that won’t mess up your employees’ paychecks and meets tax deadlines. Our recommendation is to start at the beginning of a new quarter to prevent tax compliance issues.
- Communication: Let your employees know what’s happening and explain any changes they need to make. Most payroll providers require employees to onboard tax and direct deposit information.
Make sure they’ve got your back
Payroll involves a lot of rules, so it’s crucial to make sure your new provider knows their stuff. And don’t forget about their customer support:
- Compliance: Check that they’re up to date with all the tax laws and labor rules that apply to your business.
- Support: Make sure their customer service is fast and dependable, just in case you run into any issues. Become familiar with their resource center to find the answers to common questions.
- Training: Get your team trained on the new system so they can use it effectively. Anticipate what interactions they will have with the system and what types of training might be needed.
Changing your payroll service provider is a big move, but it doesn’t have to be overwhelming. By understanding your needs, planning carefully, and ensuring they’re on top of the rules and regulations, you can make the switch with confidence. Remember, the right provider should not only meet your current needs but also be able to grow with your business as it expands.
Still debating whether to outsource your payroll? Check out this article to help you decide!