Changing payroll providers is a big undertaking and there are a lot of things you will need to consider before making the switch. If things are forgotten or mistakes made, it could lead to issues with paying employees on time, so it’s important to be prepared. We understand this can be an overwhelming process for you, so we have created the following post as a kind of switching payroll companies checklist for you to go through.
- Decide On A New Provider
The first step if you’re switching payroll providers is to reach the decision on which provider you are going to move to. Consider the reasons you are making the switch in the first place. Are you unhappy with the customer service you are receiving from your current provider? Or is the move due to your business expanding and employing a larger number of individuals? This is important as you will need to base the decision of which provider you move to around these factors. Take time to research potential providers, ask for quotes, and whittle them down based on their ability to meet your needs and their reviews. If you would like assistance keeping on top of payroll regulations, look into whether the new software you would be moving to would include this service.
- Preparing To Switch
Make sure you ask for copies of all the reports and findings your current payroll provider holds so you have control of your information should anything go wrong when leaving them. Make sure that the payroll ID numbers for your employees match the ones HMRC hold on record. If HMRC receive a different ID number to the one assigned to your employee, it could lead to crossed wires and increased PAYE liabilities. Inform all of your employees that you are switching payroll providers, and ask them to download or print off their most recent paychecks. When they receive their first paycheck from the new provider, ask them to compare them and make sure everything is as it should be.
- Making The Switch
Once you’ve decided to go ahead with a certain provider, outline exactly what you require from them in the contract and the length of the contract. It is also worth considering doing a parallel run between your existing payroll provider and your new one in the final month of your existing contract. This can help ensure the switch goes smoothly and your new provider has all the information they need to avoid any delays to pay day. If possible, try and time it so that the switch occurs during the first quarter to avoid the extra effort of tax filings and payments. Make sure the company you are switching to has impeccable customer service so that if there are any hiccups, you can get in touch with them and sort out the issue effectively.
Although it is a big decision to make and there are a lot of factors to weigh up- we hope we’ve provided you with some information that can help you when switching your payroll providers, and make the process easier and smoother.