Is It Time to Switch Your Payroll Provider?
- Created on Thu | 12 Mar 2015
As a business owner, you probably review your processes and functions regularly to check for inefficiencies. This should always include an assessment of payroll.
Many companies outsource payroll because it can be more cost-effective and reduces compliance issues. But, what if your payroll provider isn’t meeting your expectations? How do you know if you should switch payroll service providers?
Payroll providers that give you more stress and frustration than convenience are probably not right for you. Before starting the process of changing companies, talk to your current service provider about your concerns. Let them know what you are unhappy with and where you feel the service is lacking. Then give the provider a month or two to remedy the situation. If things don’t get better, it is probably time to start shopping around for other options.
Once you are ready to move on, take the following steps so you can make the right decision for your business and needs.
Make a List
If you are considering looking into other payroll programs, start by listing out the issues you are having with your current one. Maybe you aren’t getting services you need from your current provider or the communication they provide is not clear and informative. Perhaps your rates keep going up but you aren’t getting anything new. Whatever the reasons, take note of each one so you can find a new payroll provider that will offer the service you need.
Find out How to Cancel
Once you have decided your current payroll provider is not working out, find out how to cancel. It may be easier to switch at the beginning of the year or the end of the quarter, but if you don’t want to wait, make sure you can get set up in enough time to get the next set of checks delivered by payday.
Payroll service companies often have a procedure for cancelation. If you have a contract, it might cost you to break it. Additionally, some service providers require a certain amount of notice for cancelation because they need to be able to send your payroll information to the new company. Gather all of the cancelation requirements before starting your search so you know what you have to do once you pick a new payroll provider.
Pick a New Payroll Provider
After reviewing the problems with your current provider and noting what you need in a new one, start researching what is out there. Look at company reviews and reputations, as well as service offerings and price. Some payroll service providers offer everything you need for a higher price, while other options may be a bit less expensive, yet require you to perform some of the payroll operations yourself. When vetting your new options, ask a lot of questions about service and security of networks so you can set expectations for communication and privacy up front.
Switching payroll providers is usually a process, but if your current provider isn’t making your life easier, it might be time for a change. Consider the pros and cons of the payroll service provider you are using and see if you can find another one that offers the same benefits while minimizing the issues.