Many company owners wonder what the implications might be if planning to switch payroll companies mid-year. As many payroll company owners know, you don’t have to wait until the new year to switch payroll companies.
When the paperwork involved and tax information that needs to be processed, the option for switching payroll companies mid-year seems daunting. However, many documents are now electronic versions and held in cloud computing accounts. With modern technology, switching payroll companies mid-year, or any time of the year becomes far easier.
Switch Payroll Services At Your Convenience
Switching payroll providers is all about doing what’s best for your company at the present moment. If you have been considering making a switch to a different payroll company but are hesitant because the fiscal year is already underway, don’t wait. Switching payroll companies may be a smoother process at certain times of the year, but you don’t have to wait until the beginning of the year to switch any longer.
Payroll processing companies do not need to input files manually and affect the effort of transferring physical records. There aren’t piles of forms and documents required, and today’s online services are more efficient and cost-effective than traditional payroll services. Even small providers who don’t operate entirely online will still have an online database of records for your company’s payroll services which will be easily transferred.
Reasons For Switching Payroll Companies
The reason is nearly as important as knowing when to modify payroll providers. Of course, there are many reasons that folks switch providers:
- Dissatisfaction with the current payroll company
- Upgrading to a payroll service from an online or software program
- Your current provider can not handle the payroll needs of the growing organization
- Additional customer service or user support is desired
- Looking for collaborative HR services, not just payroll processing
Some people are just coming into the payroll services industry after years of managing their own payroll. There are many benefits to be had by using these services for those that haven’t before. However, even those that are just switching services will find many benefits from a minimum of reviewing the choices and considering a replacement provider.
When To Switch For Best Results
The optimal time to modify payroll companies remains at the start of the financial year. Basic rules of business advise businesses that any vendor or service provider changes should be completed as on the brink of the start of the financial year to assist streamline things for tax time. However, the supply of electronic services helps to vary that. Just because this is often the simplest time doesn’t mean that it’s the sole time you’ll switch.
You really can change payroll providers whenever it suits your organization. However, there are certain times that it will be easier to make the transition. The second best time to change providers is on a quarterly basis, which gives you four opportunities throughout the year to consider a transition to a new payroll service. Although you can switch services at your convenience, for the most part, doing it during these specific times will make tax time and other transitions much easier.
How To Make The Transition Smoothly
Now that you’ve decided that it’s time to switch payroll companies, there are some steps you can take to make the entire process smoother for everyone involved. Your first task is going to be to seek out a reputable provider (if you haven’t already) which will meet the payroll processing needs of your organization.
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 take place?
- 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 fanatical agent for your account?
- What services do they provide?
Once you’ve used these inquiries to assist you to narrow down your options, you’ll start on the method of transitioning. Take a moment to see your current contract if you’re already working with a special payroll service. Make sure that they don’t have you ever locked into a selected time frame or have penalties or other restrictions regarding leaving their service. Also, check to see how much notice they need before you switch. Most companies want 30 days’ notice to permit you to go away.
The good news is that increasing competition within the online world means there are fewer companies imposing strict contract timelines and other contract restrictions. It may be easier than you think that to go away from your current provider for a replacement one, but confirm that you simply read all of the fine print before jumping in.
Once you’ve got confirmed that you simply aren’t violating a contract, you’ll found out a contract together with your new provider and cancel the old one. Then, you’ll get to complete all of the paperwork from the new provider, including banking, legal, and other authorization paperwork. This will allow the payroll service to write down checks, pay employment taxes, and perform other payroll-related tasks on your behalf. Once the new system has been set up, either by yourself or your payroll service provider, you just need to compare it to your current records to ensure that everything is accurate.
Whether you’re trying to find better pricing or are just generally dissatisfied together with your current provider, switching may be a reasonable solution at any time of year. Most providers are looking forward to your business and can make the method easy, regardless of once you transition. Take advantage of this to maximize your benefits from switching payroll companies.
Yet when does a payroll company owner find the time to devote to their own company payroll & HR services?
Guhroo provides all-in-one HR services including payroll, employee benefits, and compliance so that you can focus on running your own payroll business.