Switching payroll providers mid-year is not an easy decision as some businesses want to avoid the risk of disrupting the current payroll process. However, when the risk of failing complex year-end payroll processing becomes more evident, it is worth to consider switching to better services. We’ve created a list of four factors that you need to consider before changing payroll providers in the middle of the year.
Meet with your current payroll provider
Before making the switch, it is advisable to have a talk with your current payroll provider to:
- Review your existing contract and define the actions required to terminate the contract.
- Review your current software agreement to budget for any additional fees associated with your departure.
Research alternative solutions
A comprehensive research will ease the decision-making process and help you find the right provider. You can also rely on software review platforms for free provider comparisons and lists of features and benefits of each provider.
Research alternative solutions to find the right provider for your business. (Photo: Internet)
Discuss your needs with potential providers
Once you have a list of potential providers, schedule a demo and discuss your needs. When you meet with a new provider, have a plan that details all the must-have and nice-to-have features ready. Identify what features you need and what features are negotiable. After the meeting, it is expected that you have a better understanding of how a new provider can help you achieve your payroll needs.
Ensure your payroll data is easily accessible
The last important factor that you should keep in mind when switching payroll providers is to ensure your payroll data is easily accessible. New providers will need as much information as possible before having your new system set up and run. You need to gather your historic payroll data from your previous provider, limit data transition time, and minimize data errors. You also need to ask your new provider for a payroll conversion checklist.