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How to Prepare When Switching Payroll Providers

In February 22, 2018
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Before you switch, keep these things in mind to prepare.

There may come a time when you feel the need to switch payroll providers. Perhaps your current provider is missing the mark or maybe their company is dissolving. Regardless of why you switch, be sure you are completely prepared to make the transition as seamless as possible.

Things to Consider When Switching
Payroll providers range in price. Before diving in with a provider, make sure the cost is worth the services you need. Some providers may be less expensive but may offer fewer services. This is a problem unless you prefer to be very hands-on with your payroll process. If you prefer to spend minimal time on payroll details and more time on your business, you may want to look for a firm with more personal services.

When to Switch
The best time to switch is at the end of a quarter or the beginning of the year. However, if you need to switch sooner, ask for advice. You will need to get set up with plenty of time to spare so you can get that first batch of checks out without trouble.

What You Will Need to Switch
Although the exact items you will need to switch over can vary, the most common are:

  • Employees’ bank account information if direct deposit is used
  • Employees’ information including names, addresses, and social security numbers
  • W-4 information
  • YTD and QTD totals
  • Your federal and state tax ID numbers (and any others you may have)
  • Copies of your most recent tax forms from the previous quarter
  • Voided checks for your tax account or payroll

Back Up When Switching
When you choose to switch, it is also a good time to back up data on your system as well as update employee information. This will ensure that when you transfer to your new system, all of your information is current and you can get back to running payroll immediately.

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