A business's reputation and financial stability are highly reflected in the efficiency of its payroll system. Paying your employees on time will not only boost their morale but will also render a positive impression on the company. Untimely payment, inaccurate pay amounts, and other payroll errors are some of the reasons for you to switch payroll providers.
If you've been planning to transfer to what you think is a better payroll system, then you're on the right page. Let’s check out how to switch payroll providers, what to consider when switching and when is the right time to do so.
When is it time to switch payroll providers?
Being with a payroll provider for a long time establishes a routine, trust, and confidence. Transferring data from one system to another is a hassle but getting a more efficient payroll system is beneficial for the entire organization. So when is it time to switch a provider? Here are the signs:
- Cost - How much is the company paying for the payroll service? Are the features or inclusions worth the price? Is the business still able to cover the provider cost?
- Ease of use - How difficult it is to integrate the payroll into the company’s accounting system? Does it require intensive or long hours of training before staff is able to learn and use it?
- Customer service - How soon does the payroll provider respond to queries? What is the process for troubleshooting? How willing is the provider to help when you’re facing the challenges of a system?
- Product and service efficiency - Payroll errors can hurt employees and can deteriorate their confidence in the company. Check for payment delays, incorrect salaries, and other discrepancies which lead to dissatisfaction and distrust.
How to switch payroll providers?
Switching payroll providers is not easy. You need time to evaluate what’s wrong with the old one and what’s good with the new one. Before concluding that the new provider is worth the change, follow these steps for switching payroll providers:
1. Compare your old and new payroll providers
You probably already know the reasons why you’re planning to switch your payroll provider. However, before diving into this huge task, compare the providers by asking the following questions:
- What are the services included and are these important to your business?
- Is it worth paying more for the add ons or can you just settle for the basic package?
- Is the payroll provider capable of growth? Will there be new and larger packages to cater to your business growth in the future?
- Will the new payroll be easily integrated into the company’s accounting system?
- Is the pricing structure suitable for your company’s budget, payment scheme, and number of employees?
- Are there other fees to be paid such as charges for integration, updates, and payment transfers?
- Are there tools and resources accessible to address training and learning curves for new employees?
- Does the new payroll provider offer a mobile app or employee portal for easier account management?
2. Review your contract with your previous payroll provider.
Understand the previous company’s cancellation policy. Do they charge penalties for contract termination ahead of time? Do they assist in transferring data from their system to another? What privileges you might lose immediately after contract termination? How soon would it take for data to be handed over?
3. Check if the features you're looking for in payroll are available with the new provider.
Make a checklist of what you require and make sure these are offered by your preferred provider. Aside from ease of use, A few of the things you should be looking for include:
- Integration with your accounting system and with your current company policies
- Knowledge and compliance with tax laws and procedures.
- Employee services such as direct deposit, account management, and attendance monitoring
- Timely payment of employee salaries and other compensation
- Smooth tax remittance processes
- Payroll reporting including new hire information
4. Schedule the setup with your new provider
Transferring tons of data from one provider to another can use a huge amount of time and effort. At a glance, you will be providing the following information:
- Employee information including names, social security numbers, and addresses
- Employee pay rates, deductions, and other benefits
- Company’s tax IDs, previous payroll tax returns, and payroll account information
- Bank account information
- Third-party authorizations
5. Prepare to sync the data from your old payroll to the new system
Discuss with your new provider how to transfer and sync your data. At this time, key employees would have already been assigned in managing or coordinating with the new provider and training has already been undergone.
6. Inform your employees about the new payroll provider
Employees need to know about the new system so that they, too, can make updates and modifications to their information. At this stage, they can sign up for the new account, manage their information, apply for bonuses or other privileges and ask questions about the new payroll.
7. Compare the new and old records.
After the switching, assign an employee to compare the old record and verify any discrepancies. This is a perfect time to check for errors The new information on the payroll provider should all be complete and accurate. Make any corrections and changes early on so you won't be cramming up for modifications at the end of the year.
What do to after switching payroll providers?
Once youve already checked the information on your new system, make sure that you have integrated everything into your existing accounting software and human resource software. Payroll integration allows automatic updates when new information is changed or added. Payroll integration synchronizes all data from the human resource, expense tracking, time tracking, taxation, and other accounting processes.
Conclusion
Business owners always aim for reduced payment errors, greater efficiency, better accessibility, accurate reporting, and full compliance. Switching payroll providers should help you achieve all of these while also improving employee experiences with regard to their compensation and benefits. Utilizing a better payroll provider like Zebra will strengthen your workforce management and will boost your employees’ confidence in the organization.
