Why Switching Payroll Providers Doesn’t Have to be Scary


If the thought of switching payroll providers fills you with apprehension, we understand. It can be a big transition, made even more complicated by the sensitive nature of your employees’ financial information. Allow us to set your mind at ease with a few of the reasons why switching payroll providers can be painless and worry-free.


Ask questions up front

It could be that another payroll provider offers better features than your current setup. Maybe they’re more flexible with their support and better with customer service. Or maybe a new provider could simply save you money and reduce your costs. These are all good reasons, but whatever the reason that is motivating you and your company, make sure you have a thorough understanding of what you’re hoping to get out of a relationship with a new provider.

Ask a few questions of your potential provider to help guide this process:

  • Who are some of their other clients? How much experience do they have?
  • What is the transition process like? The onboarding process?
  • What kind of customer support can you expect? Will there be training offered?
  • What reporting capabilities do they offer?
  • Will they be able to grow along with your company? 

Data transfer is easier than ever

In the past, the primary obstacle to switching payroll providers was having to manually gather and transfer all of your payroll information, including employee information, tax information, and accounting information. Not only that, but simply managing payroll could be a headache and a nuisance when it had to be done over the phone during normal business hours.

You’ll be relieved to know that those days are gone. Payroll providers work in a competitive industry, and most will go above and beyond to make the process as streamlined and stress-free as possible. Most will transfer everything for you into their system, and most will be available for you to make changes online at any time. A new system will also allow you to track records and view reports from anywhere.


Consider the timing

Although payroll processing companies have made it easier to make the switch, you still need to leave adequate time for the transition. If you have any doubts about timing, a good rule of thumb is to change payroll vendors at the beginning of the fiscal year or the start of a new quarter to keep your financial records easy to follow. However, technologies and processes have advanced to the point where most providers can accommodate a switch at any time of the year.

Be sure to give your old provider plenty of notice that you’ll be leaving them, in case there are cancellation terms in your contract. The last thing you want is a missed payroll, so leave enough time to sunset your old provider and prepare your new provider.


Gather your informationGather-your-information

You’ll need to provide some basic information to your new provider to get them up and running. Here’s a simple list for starters:

  • Legal business name and EIN
  • Employee information (name, address, social security number)
  • Bank account information (for direct deposit) and W-4 forms
  • Tax ID numbers and copies of your tax forms
  • Year-to-date totals

Once they have everything up and running, review all the data that your new provider has on hand and compare it with the information that you originally gathered to send to them, just to make sure it all checks out. A simple audit at the start of the switch could save you some grief down the road.


Find providers that offer training and support

One last piece of advice is to look for providers that can offer you the help you need to get up and running. Training for your staff can be very helpful in onboarding your staff to a new system, and as inevitable problems arise, you’ll want troubleshooting and support that you can count on.  


Switching payroll providers doesn’t have to be scary. In fact, it’s probably easier than you think. Take the time to ask some smart questions and find a provider that will be a trustworthy partner, and it can be well worth the effort.

New Call-to-action

Recent Posts

Employee Spotlight: Dobby the Dog

Employee Spotlight: Dobby the Dog   Job Title:  Greeter/Emotional Support Assistant

FastPay’s Ultimate Guide to Payroll

We might sound like a broken record, but it’s worth repeating whenever we get the chance: the ins and outs of payroll are, without a doubt, confusing...

Employee Spotlight: Elizabeth Brooks

Name: Elizabeth Brooks Job Title: Tax Manager