Change is never painful, but the resistance to change is painful. The same is applicable when you decide to switch your payroll service provider. It is for sure that you must have genuine reasons behind bringing change in your payroll service. Usually, this change gets delayed just at the thought of starting things again, from scratch. Your decision can be prompt if you know the right time to switch your payroll service. [caption id="attachment_11378" align="aligncenter" width="640"]Payroll service provider Payroll service provider[/caption]

You should never be in a hurry to switch your payroll service provider and must consider the following:

1. What is it that is bothering you to change? 2. Are you ready for the change? 3. Scrutinize your new selection. 4. Wait for the right time.

What is it That is Forcing you to change?

There can be many reasons for changing the payroll service provider, but you must weigh the pros and cons before you terminate the contract. Keeping in mind the organizational objectives and profits, you should go ahead with the change if the current provider lacks or posses these:

1. Repeated Errors

 Errors are quite natural in any system, process, or organization. You may ignore a few, but not at the cost of accuracy and consistency. Repeated errors or routine mistakes can cost your organization. Don’t burden yourself with a partner who becomes a headache to you.

2. Lack of support

A payroll service provider is hired to support and offer customer care whenever required. If your payroll service lacks dedicated customer care, if you do not get the support when you need it the most, it’s time to switch over to a new one.

3. Inefficient in guidance, short of a commitment, and consist of an inexperienced team

 You may realize your mistake quite late, when you know that your payroll partner is not dedicated to his job, not interested to offer you timely and sufficient guidance and consists of inexperienced staff. These are enough reasons to be decisive for your choice of change.

4. Time is money

When your payroll service provider, most of the time, takes much time each time a task or assignment is given its time to recommend the change. Remember, sticking to a job for long can affect your productivity and in turn may result in loss of money. The payroll should be quick and straightforward. The team should be swift in its delivery. If not, time to switch over.

5. Overpay/Overcharging

Keep evaluating your selection of payroll service and the products being offered. You being on your toes will give you reasons to understand if your payroll service provider is overcharging or overpaid for the provided services. When complete and found correct, change.

6. Adapt with time

With new technological advancement, everyday things and processes are simplified. If your partner can not scale themselves or make the required transition, it’s time to change.

Payroll service provider

Are you ready for the change?

Once you have decided not to worry about yourself anymore, it’s time to determine if you are ready for the change. There are things and steps which you must ensure before you share the decision with your partner.

1.Review your contract

Check your agreement with the payroll partner for any contractual condition in termination. Are there any time restrictions you must comply with? This may delay or fasten your decision.

2. Notice period

Usually, any contractual agreement has a ‘notice-period.’ Comply with the notice-period.

3. Get copies of docs

Before you offer the notice ensure you receive the following data from your current payroll service provider:

  • A complete record of employees, which should include all the payment details, including tax liability details.
  • You must receive the payroll break-up of each employee, like net wages, payroll taxes, and gross packages. The records of the terminated employees are also necessary.
  • Get copies of the charge filed in the past for each employee. Scrutinize your new selection

Scrutinize your new selection

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Now that you have reasons to switch over, have checked your docs and are hunting a right partner you should keep the following in your selection:

1. Ensure your new partner can plug the gaps which the current partner is unable to deliver. 2. Has relevant experience in the industry and has employed a skilled and certified workforce. 3. It can upscale when required in terms of technological advancement. 4. Ensure they are competitive in their charges. 5. Legally and financially sound enough to handle payroll services. 6. It is ready to assist you in the transition from current to the new set-up. 7. Competent enough to save and secure all your data.

Wait for the right time of the year

With all the above detailing and preparation you must consider or prefer a suitable time, in the year, to make the transition. Either the time is appropriate , or the thumb rule is to switch at the beginning of a fiscal year or the beginning of a quarter. This is valid as the new partner, as well as you will have to work with less historical data.

The final call or Review

Moreover, before you call it a day with your current payroll service provider, ensure you have completed the following steps:

• Chalked-out the reasons for switching over. • Canceled old contract. • Scanned for your new options. • Selected the appropriate time of the year. • Signed original contract. • A list of transition items is made.


Gone are the days when it was cumbersome to switch over payroll providers, and you were forced to compromise with inexperienced and costly providers. Today, the market is abundant with competent, smart, reliable, and cost-effective payroll service providers to choose from. Make the most out of the available choices and switch!  

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