Switching Your Payroll Service Provider? Consider These Tips

September 16, 20213:43 pm2286 views
Switching Your Payroll Service Provider? Consider These Tips
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Not satisfied with your company’s current payroll service provider? You might be thinking of switching to another provider. Among common reasons why people are discouraged from switching payroll service providers is due to its difficult and time-consuming process. But, if you are well-informed and prepared about making the transition, you can do it seamlessly and enhance your payroll method. 

While there are plenty of available payroll service providers, it is wise to carefully consider several things prior to the switch. This can include the scope of your company, your budget, and features needed to best accommodate your company’s needs.

Pay attention to timing

Changing payroll providers mid-year can be a little bit tough. While not mandatory, switching payroll service at the end of a calendar year can save you some hassle, especially if you have a large number of employees. Switching mid-year also requires extra effort in terms of tax payments and filings. If you do not have time to wait until the end of year, then try to do it in the first quarter. Make sure that the switch will not interfere with your employees getting paid on time, because you will need to determine what your current provider handles and what your new provider will handle. 

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Understand your company’s needs

There are many types of service offered by payroll system providers, but do you really need them all? It is best to understand the types of service needed by your company. According to Eddy, here are several features available in full service providers:

  • Top-of-the-line customer service
  • On-time employee payment
  • Quarterly and annual tax returns
  • New-hire reporting
  • W-2 preparation, filing, and distribution
  • Tax remittance

Given that full service may be costly and smaller companies or startups may not need them all, you should find a provider that offers a simpler package. If your company is relatively large and complex, then you might need all of those services, so opt for providers that have full service.

Research on prospective service providers

Upon finding several prospective service providers, conduct a proper research on them. Aside from the services they offer and pricing that suit your company’s needs, there are other aspects to consider. First, make sure that they have customer support readily available to answer inquiries during the time of use. In case something goes wrong with the new software, the customer support will be ready to help you. Next, you need to make sure that the new provider will help handle the transition and assist on what you need to prepare for it. If you are still unsure about your findings, you can read some available reviews about the softwares on the internet for a fairer perspective.

Let your employees know

Once you settle with a new payroll service provider, make sure your employees are aware that you have made a switch. Ideally, the change will have little impact on them, but each payroll provider has slightly different procedures. As your employees will no longer have access to the old provider’s information, have them print or save previous payroll information or download and save them in a folder. Make sure your employees double-check their first pay slip from the new provider. Since a lot of data is transferred when a payroll provider changes, this is a good idea to double-check everything to ensure the reliability of the new payroll service provider.

The most crucial components of every successful company is an effective and reliable payroll system. Working with a payroll provider should be enjoyable, and you should be totally satisfied with their service. Beyond meeting financial obligations and preventing legal problems, a suitable payroll service provider does contribute to employee satisfaction as well.

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