Switching Payroll Providers Mid-year
In the past, companies considering a switch in their payroll services had to wait until the end or beginning of the fiscal year. The paperwork involved and the tax information that needed to be processed made it too chaotic to make such changes at any other time. However, thanks to modern technology and electronic record-keeping, switching payroll providers mid-year or at any other convenient time has become easy.
Switch Services at Your Convenience
If you’ve been contemplating switching payroll companies but are hesitating because the fiscal year is already in progress, there’s no need to wait any longer. Take action now to do what’s best for your company. While it may be simpler at certain times of the year, switching payroll services is not difficult regardless of when you choose to make the change.
Payroll processing companies no longer have to input data manually or deal with the hassle of transferring physical records. Today’s online services are more efficient and cost-effective than traditional payroll services. Even small providers who don’t operate entirely online still maintain an electronic database of records that can be easily transferred.
Reasons to Switch Payroll Companies
Understanding the reasons behind switching payroll providers is as important as knowing when to make the switch. Here are some common reasons companies choose to change providers:
- Dissatisfaction with the current payroll company
- Upgrading from an online or software program to a more comprehensive payroll service
- The current provider can no longer meet the payroll needs of a growing organization
- Additional customer service or user support is desired
- Seeking collaborative HR services, not just payroll processing
Even if you’ve managed your payroll in-house for years, using a payroll service can offer significant benefits. For those already using a payroll service, reviewing and considering new providers can still provide advantages.
Optimal Timing for Switching Payroll Companies
The best time to switch payroll companies is still at the beginning of the fiscal year. This timing helps streamline processes for tax time. However, the availability of electronic services is making it easier to switch at other times. The second best time to change providers is on a quarterly basis, providing four opportunities throughout the year to consider a transition.
Although you can switch services at your convenience, doing so at specific times can simplify tax time and other transitions.
Making the Transition Smoothly
Once you’ve decided to switch payroll companies, follow these steps to ensure a smooth transition:
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Find a Reputable Provider: If you haven’t already, choose a provider that meets your payroll processing needs. Ask important questions like:
- How long have they been in business?
- Do they have references or reviews available?
- Are agents available 24/7?
- How does the transition process work?
- Will they assist with compliance issues like new tax and payroll laws and regulations?
- How many customer service agents are on staff?
- Do you get a dedicated agent for your account?
- What services do they provide?
Check Your Current Contract: Ensure that you’re not locked into a specific time frame or penalized for leaving your current service. Most companies require 30 days’ notice before you can switch.
Set Up with the New Provider: Once you’ve confirmed that you’re not violating any contract terms, set up a contract with your new provider and cancel the old one. Complete all the necessary paperwork from the new provider, including banking, legal, and other authorization paperwork. This will enable the payroll service to handle checks, pay employment taxes, and perform other payroll-related tasks on your behalf.
Verify Accuracy: After setting up the new system, compare it with your current records to ensure everything is accurate.
Whether you’re looking for better pricing or are dissatisfied with your current provider, switching payroll companies is a feasible solution at any time of the year. Most providers are eager for your business and will facilitate an easy transition.
For a seamless transition to a new payroll company, contact iPay Solutions to learn how our comprehensive, local payroll and HR solutions can benefit your business.