Everyone knows that Payroll is the fundamental part of a business. An error could result in lack of trust with management and employees walking out. When it comes to payroll, there is little to no room for error.

At Propay Partners, we constantly get asked by prospective clients when is a good time to switch payroll providers. The answer is simple. 

WHEN YOU STOP GETTING THE SUPPORT YOUR PAYROLL PROVIDER SHOULD BE GIVING YOU.

However, changing payroll partners is not easy and the move can present a ton of complications.

At which point of the year is it good to switch payroll providers?
We normally tell our prospective clients who are looking to change providers that the optimal time to switch is end of the year to allow for a fresh start at the beginning of the year. It will give your new payroll partner time to migrate data from one system to another, allowing you to start a fresh with no data complications. Also, many new tax laws take effect Jan. 1, so your payroll changes can take place on one fell swoop.

However if this is not possible can you switch payroll providers anytime of the year?
Yes you can, as long as you have your payroll history records, you can switch at any time and we will assist you through the process without affecting statutory reporting. Just remember to speak to your current payroll provider to ensure your data is properly reported so that there are no miscommunications. Remember to provide your new payroll partner with your company’s past payment information and tax filings.

So WHY should you switch payroll providers?

Payroll errors is the number one factor you should consider when switching providers. Payroll errors can reflect negatively on your company and cause lack of trust with current and prospective hires. According to a study approximately one in four employees will look for a new job after the first payroll mistake, while another 25 percent will seek new employment after the second issue. The study found nearly 50% of employees will seek a new job after only two payroll errors, and salaried employees were more likely than hourly employees to look at new opportunities.

Cost plays an important factor in every business situation. Business owners want to know they are getting their bang for the buck. Most business owners do not conduct extensive research on payroll services before choosing a provider and end up paying an exorbitant amount for somewhat average services. Talk to your current payroll provider and get a clear understanding on what they are charging you for and for what services. It is very possible that you could be paying for services you are not using. If they are unable to give you a viable explanation as to where your money is going, it is time for you start shopping around for a new payroll provider.

Outdated payroll system without a doubt can cause endless payroll problems and errors. Updates and security patches are required for even the latest software system to run smoothly. In 2021, the global average cost of a data breach amounted to 4.24 million U.S. dollars, an increase on the 3.86 million U.S. dollars in average data breach costs in the previous year. It would be near to impossible to fix data vulnerabilities in an ageing software and to prevent hackers an opportunity to access private data.

Poor customer support may get difficult for you to run your business. There are several payroll providers that have a strong customer support in place and provide excellent services to their customers. When it comes to payroll and tasks revolving around it, it is usually considered a priority. A good payroll service provider should be able to assign a dedicated payroll officer available especially during business hours to solve your query whenever required.

Deciding on switching payroll partners can be a big decision. Before signing the dotted line, it’s always best to get a preview of the services, details of what the contract entails and a real-time experience of payroll delivery.

To know more about such solutions, we at Propay Partners can assist you with a demo. Visit https://www.propaypartners.com to know more.