Switching Payroll Providers: What You Need to Know

As businesses grow, so do their needs. What worked when your company before may no longer be the right fit as you expand, and that includes your payroll provider. Sometimes, it’s not your business that’s changed, but the service from your current provider. Maybe the quality has slipped, or the features you need aren’t offered anymore. Or, maybe it’s just not the right match. Whatever the reason, if you’re thinking about switching payroll providers, it’s important to know what to look for and how to make the transition as smooth as possible.

Choosing the Right Payroll Provider

Before you make the leap, take a good look at the provider you’re considering. You want to be sure that they’ll meet your needs not just now, but down the road too. The goal is to avoid getting stuck in the same situation a few months later. When you’re evaluating new payroll providers, think about:

• How easy the software is to use
• Whether it integrates well with your other systems
• The quality of their customer support
• How often their system goes down
• If they offer self-service options for employees
• Extra features like HR tools or timekeeping/scheduling

Don’t hesitate to ask for a demo of the software or a trial period to test it out. Also, it’s perfectly reasonable to ask for a written proposal, so you have all the details to share with your business partners or stakeholders.

Getting Ready for the Switch

Once you’ve found a payroll provider that looks like a good fit, it’s time to prepare for the change. Switching payroll providers can feel like changing insurance or even doctors—it’s a big step, and you need to make sure you’re bringing over all the right information. Here’s what you’ll need to gather:

• Your company’s legal name, address, and business type
• Payroll records and employee details
• Your federal employer ID number (EIN)
• State unemployment and withholding IDs
• W-2s for all employees
• A voided check from your current provider

Timing is key here. It’s best to make the switch at the end of a quarter or year, so you don’t end up with records from two different providers. Once you’re ready, give your current provider a heads-up and request the necessary information.

Making the Transition

When you start with your new payroll provider, be sure to coordinate with them on your tax filings. If you’re working with an accountant, let them know about the change, so they can help ensure everything is aligned. Once everything’s in place and the tax filings are up to date, you’ll be all set to start using your new payroll provider.

Why Choose Peak Payroll

If you’re considering a change, we’d love to be your next payroll provider. At Peak Payroll, we’re a boutique-style service with tailored payroll and HR solutions to fit your company’s unique needs. From custom payroll reports and tax filing assistance to HR tools and compliance support, we’ve got you covered. Ready to make the switch? Contact us today to see how we can help streamline your payroll process.