Switching payroll providers can be a challenging process. It implies that you’re not satisfied with your existing provider and given the sensitive and complex nature of payroll this can cause significant distress. Below are some ways to properly select the right managed payroll vendor.
When Should A Switch Be Made?
Timing is everything when it comes to switching payroll vendors. Waiting until a quarter is almost over is wisest because there will often be state and federal filing requirements that must be completed. If you try to switch vendors during the middle of the quarter, you will have to submit the filing requirements twice, which would be tedious and time consuming.
Which Payroll Vendors Are Best?
The fact that you wish to switch vendors shows your first choice clearly wasn’t the right one, so the second vendor should be selected with greater care. Payroll vendors can be divided into three broad categories, which are startups, local firms and major players. Each offers distinct customer service levels and accomplishes different tasks.
The choice you make should depend on the amount of customer service you require, the complexity of your payroll and whether the company is capable of meeting each of your payroll needs. A vendor should never be chosen purely based on price, and should instead be chosen based on the value they provide. Oftentimes the more expensive vendor costs more because they’re worth it, while cheaper vendors may leave more money in your pocket up front but will create headaches over the long term.
An extensive amount of research should be undertaken on any vendor you’re considering doing business with. How long have they been in business? Are they listed in the Better Business Bureau? If so what is their grade? Speak to current clients to find out if they’re happy with the service, and speak to former clients to find out why they left.
Read any information you can find on the payroll vendor to see if they’ve received any negative coverage, and why. Payroll is among the most sensitive pieces of a data that a company has, and when switching vendors you will have to entrust it to them. It is the responsibility of the vendor to make sure that information is not compromised by any unauthorized party.
What Is Required To Switch Payroll Vendors?
Before you can switch vendors, there are a number of things you’ll need to provide. Much of this will be in the form of documents and specific information which are related to your firm and HR department. Such data will include a list of employees, their social security numbers, their addresses, and copies of payroll filings for the current year, direct deposit details of employees, state and federal tax ID numbers, and bank account information for the company. As you can imagine, all of this info is incredibly sensitive and can do significant damage to your firm if it falls into the wrong hands. For that reason it should always be stored and transmitted in a secure manner. Many businesses have found success by switching to TRAX Payroll.