Transitioning at the start of the year gives your new payroll provider a clean slate without depending on your old company to migrate information.
When Is the Ideal Time to Switch Payroll Providers?
The ideal time for switching payroll to a new provider is at the beginning of the year. Your new payroll company should provide the first check in January, even for work completed in December. Doing this makes it much easier for your new provider to track government and tax information paperwork.
Transitioning at the start of the year gives your new payroll provider a clean slate without depending on your old company to migrate information.
Be sure to talk to potential new payroll providers to see what lead time they need to set your company up. When trying to improve your payroll process, you don’t want to kick it off with a missed payment for your workers during a transition.
If you need more from your payroll provider, like integrated HR solutions that help in areas like recruiting and onboarding. A company that offers multiple services beyond payroll software can help you streamline your workflow and might even save you money if you currently use separate services.
Can You Make the Switch Mid-Year?
If your payroll company makes too many errors or their systems don’t integrate with other parts of your company’s software, you may decide that switching payroll companies mid-year makes the most sense. If possible, try to do it at the beginning of the quarter. No matter when you do it, other than at the beginning of the year, you should be prepared to migrate your information from your old payroll provider to the new one.
If you switch mid-year, talk to your new payroll provider to make the change as seamless as possible. They can tell you which information you make a priority to move, as well as a rundown of all the information they will need. If your company has news or circumstances that are particular to your business, your new company can also help ensure this doesn’t cause any gaps in your payroll.
Why Switch Payroll Providers?
Your employees depend on getting paid on time, and your business relies on having satisfied employees who do their jobs well. If you are considering switching payroll providers, make sure vendors you talk to have payroll software that fits all of your needs.
Your employees have rent or mortgages and other bills to pay. They may have late fees attached to them and concerns about maintaining their credit scores if they cannot keep up with credit card payments.
Even your most loyal employees might decide that they have to leave if their payroll isn’t accurate. Up to 49% of workers will start looking for a new job after two payroll errors. Among working parents, 30% start a new job search after just one mistake. If they aren’t paid on time, they may feel they have no choice.
Make a Change Now
If your payroll company isn’t meeting your expectations, contact the experts at Applied Payroll Solutions today. Our payroll software saves time and makes your company more efficient. We also offer HR and employee scheduling solutions, so you have an integrated platform that helps maximize your ROI.
