Is it Time to Switch Payroll Companies? Here are 6 Red Flag Warnings All Small Businesses Should Be Aware Of

see any red flags? it might be time to switch payroll companies

Some people love their payroll companies… others do not. We hear the nightmare stories and red flag warnings from our new clients and often hear similar reasons why they are unsatisfied with their former payroll provider. It seems many of the stories follow a common theme, so we decided to list them here. Here are some of the common red flag warnings and even a few reasons the decided to switch payroll companies to Liberty Payroll and HR as their payroll & HR provider.

Red Flag #1: “I can’t get a live person on the phone in a timely manner.”

Customer service is best served when it is needed most. Lack of staffing, people in call centers not familiar with your company, and not being able to get quick, accurate information when you need it is at the top of the list of red flags. “Our tag line is Payroll By People, Not Just Software,” says Josh Rothenberg, VP of Sales and Marketing at Liberty Payroll and HR. He continued, “Not only is our team responsive, we understand that time is of the essence for you when you are trying to run a small business. We make “hold times” are a thing of the past for our clients”.

Click Here to See Our Leadership Team: https://libertypayrollhr.com/our-team/

Red Flag #2: “There is a different representative each time I call”.

A large part of customer satisfaction is communication. If your payroll company is non-responsive and you find yourself being bounced around from person to person, or worse, you never speak to the same person twice; nothing is more frustrating for a small business owner than to have to repeat the same story or repeat the same questions to multiple reps over multiple calls. If you find you can’t get the same person on the phone consistently, it might be time to switch payroll companies.

“At Liberty Payroll and HR our reviews are filled with compliments to our extraordinary team members – the highest form of compliment we could ever receive,” said Sonia Soares, Director of Operations at Liberty Payroll and HR. She continued, “Each of our clients has a dedicated rep who is assigned to each account to ensure and maintain the highest level of communications and customer service standards.”

Red Flag #3: “My taxes were not filed on time”.

The last thing a small business owner wants to think about is taxes. Even worse – not having your payroll taxes filed on time. When this happens, there are often late fees and penalties that can occur on the state and/or federal level. “We have streamlined our payroll software to make sure we are compliant with all state and federal guidelines. Our roots are in accounting and filing taxes on behalf of our payroll clients is our top priority”, Says Antonio Pereira, Chief Compliance Officer for Liberty Payroll and HR.

Red Flag #4: Inability or reluctance to register and file in additional states and then tax those states correctly

If you have employees who live or work out of state or in multiple states, this can lead to confusion when it comes to withholding and remitting payroll taxes. In fact, 48% of employers indicate that state-to-state withholding, and reporting, is an issue or growing concern for their workers as they become more mobile.

Depending on the state, you will need to pay the tax obligations plus penalties and interest if you do not get the withholding right. If your current payroll company is reluctant or unable to withhold or remit payroll taxes correctly, this is a big red flag that you need to switch payroll companies immediately. Liberty Payroll and HR has been leading the way and works with many clients whose employees travel between multiple states.

Red Flag #5: “My provider was not keeping up with new laws”.

Staying on top of ever-changing payroll laws has become the hallmark of Liberty Payroll and HR. Running payroll and remaining compliant with the rules demands a complete understanding of all state and federal guidelines, laws and regulations. At Liberty Payroll and HR, we have heard plenty of nightmare stories from small business owners who have had to face fines, penalties because the payroll company they were using was not keeping up with current payroll laws.

Red Flag #6: “My special pricing expired and now I see I am paying double or triple.”

Some larger national payroll companies have many ways to hide fees or raise fees that many business owners do not recognize until it is too late. We often hear our new clients explain that their payroll fees doubled without them realizing. We also hear the customer service they are paying for is lacking. We have even heard a few stories about fees not being honored as quoted. This is a major red flag when shopping for payroll services, and if you feel like your fees are unreasonable, it might be a good time to switch payroll companies.


From unkept promises to being unresponsive on the phone, many of the larger national payroll companies have a great sales pitch or a lowball price. At Liberty Payroll and HR, we challenge a our team and have been recognized by our peers for exceptional service by offering new and unique services to help clients meet their needs of compliance, resources, and technology.

Liberty Payroll and Human Resources Services

Liberty Payroll and HR offers customized solutions to fit your small business needs. Our payroll and HR services are scalable! Whether your business is small or large or somewhere in between, we will customize a solution to meet your exact needs. Click here to request a quote!