The new year is always a great time for a new start, but that does not mean it’s the only time. If you are looking to switch payroll providers, there is no need to wait until December to do so! The beginning of a new quarter can be just as beneficial.
Switching Payroll Companies Mid-Year
When is the best time to switch payroll providers? You may believe it can only be done at the beginning of the fiscal year, but that’s not so.
Some companies prefer to switch at the beginning of a new quarter as well because it makes their financial records easier to follow.
Switching payroll providers at the beginning of a new quarter is simpler than switching during random times of the year because you’ll have less historical data to deal with. Today, online payroll services make the migration process simple, and in many cases, they will do the data entry for you.
What to look for when searching for a new payroll service.
How long has the payroll provider been in business?
It is important to know your new payroll provider will be there for you when you need them most. If you choose a company with a long history and clean track record, such as Corporate Payroll Services, which has been in business for 30 years, you can rest assured that the provider will not suddenly disappear or go out of business without notice, leaving you and your employees in the dust.
Are they limited to serving businesses of certain sizes?
Businesses come in many sizes. You may be a small business with only 1 or 2 employees or a growing business expecting to grow from 10 employees to 500 within the next few years. Make sure your new payroll company can accommodate your business at any size. At Corporate Payroll Services, we have clients ranging from one employee to hundreds of employees. We can provide personable, first-class service for all sizes.
What are their customer service options?
Do you hate calling your current payroll service provider and going through an extensive and frustrating automated system, or speaking to a different person each time you call in? This may not be a problem for some, but for others, this can be a deal-breaker. When searching for a new payroll provider, inquire about what their options are. If you are running payroll and have a question or concern about your account, it is important to have a dedicated customer care team.
How do their customers feel about them?
Take a look at online reviews to see what customers, both past and present, have to say about the company.
Do they handle payroll tax concerns?
Payroll and tax mistakes happen, but it is nice to know that someone is there for you when this occurs. It is even better when you can trust a payroll provider to take full responsibility and take care of everything if the error is on their end. At Corporate Payroll Services, we have many double-checking processes in place to keep errors to a minimum. We believe accuracy is the very first thing customers want from a payroll processor.
How to switch payroll companies.
When you are switching payroll providers, here are a few things you will need to do:
Choose a start date with your new provider.
- Make sure your last payroll of the quarter runs through your previous payroll provider and your first pay date of the new quarter is with your new payroll provider.
- For example, if you have a pay period ending in March, but the pay date is in April, you want to make sure this payroll is run through your new payroll provider. This is because payroll taxes are based on the date on the checks, not when employees do the work.
- Request or download copies of all your employees’ information, payroll reports, and annual tax forms.
- Your new provider can often help with gathering this information as part of their setup process.
- To get started with your new payroll provider, you will need to provide the necessary information to get your new account up and running. Requirements vary from one payroll provider to the next. Your new payroll service provider will let you know which information is necessary to begin services. Required information may include:
- Business Identification:
- Federal Employer Identification Number (EIN)
- State and local withholding tax ID numbers
- State unemployment insurance account number
- Legal business name and address as registered with your EIN
- Employee Information:
- Employee names, addresses, and valid social security numbers
- Worker classification (are they classified as 1099 or W-2?)
- Federal withholding Forms W-4
- State withholding forms (if applicable)
- Employee bank accounts if you are doing direct deposit
- Business Identification:
Terminate your account with the old provider.
- Once you have completed the setup with your new payroll provider, notify your current payroll provider about terminating your account with them. Make sure you know how much time they require, what kind of paperwork is needed, and other procedures you need to follow to wind up your account.
Bottom line, if you want an easy way to get new payroll help, a quarter-end is a great time to make the switch. Give yourself time to research and get all of the information you need to make the transition as smooth as possible.
If you would like to learn about how Corporate Payroll Services can save you up to 40% on payroll, contact us today!