How to switch payroll providers smoothly

Do you feel trapped in your current payroll service and wonder how to switch to a new provider smoothly? 

Well, the old answer to that question used to be “you can’t.”

Switching payroll providers used to mean manually tracking down and taking all critical information — such as sensitive employee information — before walking out the door. 

Fortunately, that’s no longer the case. 

Whether you use a PEO or a payroll firm, sometimes it can feel like you’re paying too much for too little.

So how do you go about saying goodbye to your old provider?

Thanks to the information revolution, leaving your payroll provider has never been easier. 

Check out these tips on how to switch payroll providers smoothly. 

Know why you’re leaving.

The truth is, it’s hard to figure out how to switch payroll providers smoothly if you don’t have a good idea about why you’re leaving in the first place. 

Of course, there are a lot of valid reasons why you might want to leave.

That includes:

• Better service
• Your current provider’s system is outdated
• Your company is rapidly growing
• You’re being overcharged

A word to the wise, however: Don’t leave just because someone else has offered you a cheaper price. 

Saving money is a perk only up to a certain extent. Yes, you should always look for a payroll provider that’s willing to negotiate, but you don’t want to give up quality for a cheaper price.

Instead, make sure that the provider brings more to the table than just a tempting price. 

Do your research

Which brings me to my next point.

If you want to know how to switch payroll providers smoothly, here’s the key:

Compile as much information as possible about the company you plan on switching to.

Especially when it comes to payroll, reputation is everything.

Someone can offer you a great price, but if they have horrible reviews online, or sound too good to be true, you probably want to steer clear. 

And don’t just depend on Google reviews either. 

Confer with other business owners and gather their opinions on that particular company. Research the provider’s clientele and consider reaching out to some of their customers to collect their feedback on the service.

Also, take a look at the provider’s record on your local Corporation Commission’s website.

Plan ahead

One of the biggest mistakes you can make when switching payroll providers is making the move too soon.

You wouldn’t cancel your car insurance before you secured a plan with another company, right?

The same goes for payroll: one brash decision and you can find your company (and your employees) stranded without a backup plan. 

Although it might be tempting, don’t tell your payroll provider “goodbye” just yet. Instead, ensure you have an alternative plan with a different provider in place before you leave. 

This is, in itself, how to switch payroll providers smoothly. The reason is simple: Neither you nor your employees will notice a break in service. Additionally, this gives you the right amount of time to find the perfect service for you. 

Also, planning will help you avoid any cancellation fees because you’ll be able to determine when your contract ends (if you have one) and plan accordingly. 

Collect your employee data.

Just as you trust your employees, they also count on you to keep their personal information safe. 

Additionally, having to provide all your employee information to a new provider again can be complicated and downright inconvenient. 

Collecting that information from your old provider before you leave, however, eliminates much of the hassle from the process. 

You won’t have to worry about the security of your employees’ information, and you also won’t have to worry about compiling that data again. 

By collecting it in one place, you can simply turn over that information to your new provider when it comes time.  

Compare payrolls

When it comes to payroll, accuracy is paramount. 

The last thing you want is to end up paying for a payroll service only to incur costly mistakes. 

That’s why it’s crucial to double-check your new payroll against the old one. 

One of the best ways to do this is to run a parallel payroll before switching to your new provider. 

That way, you can catch any errors before they become big problems and discuss them with your new provider. 

Conclusion 

At the end of the day, knowing how to switch payroll providers smoothly is all about having a strategic exit strategy.

Although it takes more work, it’s worth it. Finding a payroll firm that’s accurate and provides excellent service at a reasonable price, all while having the peace of mind, is never overrated. 

Don’t overlook these tips. They can be the difference between spending hundreds of extra dollars on payroll and finding a system that fits your needs and your budget. 

Follow the above steps and you’ll spend less time worrying about your payroll and more time getting it done.