Everything You Need to Know About Switching Payroll Companies
Most businesses with more than a handful of employees use a payroll service to assist them in paying those that work for them. However, over time, a company may find the need to change providers due to an unsatisfactory system of working, high costs, or even inefficiency. All these are significant issues, and if no solution is found, the best option is to switch payroll companies.
Changing payroll providers is a decision that requires you to identify what went wrong and what you need. If your company is looking for a new payroll provider, then you can benefit from the following guide.
Why Should You Consider Switching Providers?
You can change payroll companies whenever you like. Here are some common reasons to go for the change:
If your business has recently grown by a medium-large margin, your current provider, depending on the size, may not be in a position to facilitate the change. In this case, instead of using two different companies, it is better to look for one that can cater to all your present and future needs. Also, if the cost of your service increase per employee, you may want to consider switching to a payroll company that does a flat fee to save costs.
Payroll companies use different systems and platforms that have different features, integrations, services, and user-friendliness. Having a payroll system that works in tangent with your company’s needs is crucial. If the system your current payroll company uses is not working for your business, look for a company who’s system fits your needs and wants.
Looking To Upgrade
Companies that have used the same payroll provider for years may not be aware or presented of new features or services that are available in the HR world. This could be due to the current company not offering them or that you aren’t aware since you aren’t searching. If you have been on the same software for 5+ years and have not seen any updates it may be time to consider other platforms that may be more updated to today’s HR advancements. These could benefit your company and your employees.
Having reliable and timely support is crucial with a payroll company. Whether it is for payroll questions, new employees or when something may go wrong you need a provider that has support available when you need them. If your current payroll provider has long wait times or response periods, no dedicated support representative for your company or non-helpful support it may be time to switch to a payroll company that has this support available.
What Services Do You Need?
Other than handling and processing payroll, are there more services from which you could benefit? Ensure that when comparing your payroll service options, you look at what services are provided, then decide if it is worth the amount. Some of the services include:
- Time-Off Requests (PTO)
- Payroll Integration
- Employee Timekeeping
- Employee Onboarding
- HR Compliance
- HR Consulting
- Employee Benefits
- Recruiting & Hiring
How Can You Choose The Best Payroll Company?
All payroll providers are quite different, and they each offer various services that you may want. However, to choose the best one, you need to know how to compare what you are receiving. So here are some of the crucial points to check on before deciding.
Note All Your Options
Don’t choose the first company that you come across, no matter how perfect it sounds. You should be able to get quotes from several providers to get a feel of what is out there. Compare everything from the reception, costs, services, and how well it would integrate into your company’s system.
Type of Experience
In many cases, businesses choose large corporate companies rather than local ones since they believe that they are more reliable. True, a large company may have a system in place, which is both a good and bad thing. On the negative side, it means that you may not get the flexibility that you may want. Corporations also tend to be impersonal, and it is all about the money and not the experience, unlike a local company. As a local business, consider supporting a local business rather than a large corporation.
Get a Feel of the Provider
The best way to know whether you can work well with a particular company is actually to meet with them. Set up a meeting and explain what you need so you can get a direct response from which you can decide.
Check for Recommendations
Sometimes what you need is information that you can get from peers. Colleagues who have worked with various payroll services may provide much-needed insight into what you should choose. Get reviews and recommendations, so you make an informed choice.
What Important Information Should You Provide?
If you are already working with a payroll service, then you already know what information is required, such as:
• Names, addresses, and social security of all your employees.
• Bank account details.
• W-4 information.
• All ID numbers, including state, local, and federal.
• Tax forms from the last quarter.
• The pay period.
When Is The Best Time To Change Payroll Service Providers?
At some point, you may feel done with your current payroll provider, and you may want to make the switch immediately. However, that can be complicated if it is in the middle of a financial year so the move may not be as smooth as you want it. Switching payroll companies year-end might be a better choice.
When you look into changing payroll companies year-end, you can start a new year with a new provider without issues from the previous period. You won’t have anything to correct that may take time, so you can decide on one company and get started immediately.
Alternatively, to give you more time to shop around, instead of changing payroll companies year-end, you can start making the changes before the beginning of the final quarter. It may be a bit easier to start making changes at that time since everything is in its last stages.
Regardless of when you believe it’s best to change your payroll service, it is essential to start looking around early enough. This gives you more time to prepare and finalize your transactions with the current provider. Begin around October, even if you are looking into switching payroll companies year-end, as this allows you enough time to compare and get as much information as possible for you to make that switch.
Our HR Guides at ERG Payroll & HR are dedicated to providing cost-efficient, supportive and trusted HR solutions and payroll services to our business partners. It is easy to switch and we guarantee you will be happy you did. Contact us to schedule a quick call.