There are many reasons why people switch payroll companies. Poor customer service, inconsistent service representatives and long holding times often top the list. That tells us a few things about small business owners in general; when they have a problem, the want an immediate solution. Keeping a small business owner on hold or even putting someone on the phone who is not familiar with their account is a huge no no.
Other reasons range from outdated software, human errors and overpaying for service. Paying attention to costs variables like payroll is hard for small business owners, especially if the costs creep up over time. Some of the national payroll companies come in with a low-ball number only to rachet up the cost after just a few months.
What are the Steps to Switching Payroll Companies?
There are a few steps you should take when you want to begin the process of switching payroll companies. When deciding on a new provider, you will need to gather all your payroll information to begin the transition. Here is the step by step how-to guide for switching to a great payroll provider when your current payroll company is letting you down.
When it comes to switching payroll companies, here are the 4 steps:
- Decide on a new payroll provider
- Gather all payroll information
- Begin the transition
- Notify the old provider
Decide on a New Payroll Provider
First off, you will have to decide which provider you are going to be switching to. Make sure you select a company that makes the payroll process easy for you and has the features your small business is looking for. Wages and tax calculations (including overtime), direct deposit, time-off tracking, multi-pay rate, free support and an employee portal are some of the most popular features.
Gather all Payroll Information
You should begin to gather your payroll information as your new payroll provider will need this. Make sure your FEIN number, EFTPS and state and local information is handy. You will also need employee-specific information for each person employed by the company. Employee wage, tax and deduction information, pay stubs, year to date payroll, employee time off balances, pay frequency, direct deposit information, SS number, contact info and copies of reports should all be in order when you start the process.
Begin the Transition
Once the information is gathered it can be entered into the new software package. Many employers who are switching payroll companies begin the transition before they shut down the old system just in case they need to look back and reference important information. Make sure you have a safeguard in place so you do not run payroll from both systems accidentally!
Notify the Old Provider
Finally the day has arrived when you can notify the old provider that you decided to make the switch. Always put it in writing so you can prove you gave the notice. Once you have closed payroll with the old provider, you are free to run payroll with the new provider.
Most payroll companies understand it is the responsibility of the new payroll provider to fill out the year end reports once the switch has been completed. If you have questions about this article and are interested in switching payroll companies contact Liberty Payroll and HR and find out how you too can make the switch!
Liberty Payroll and HR
52-54 Rome Street
Newark, New Jersey 07105