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8 best times to switch payroll providers

8 Reasons to Switch Payroll Providers

Payroll can be one of the top areas of frustration for business owners. Without the right knowledge and systems, employees may suffer improper paychecks and businesses may suffer penalties. Whether you do payroll yourself or entrust another entity to handle your payroll, if you are experiencing these problems, it may be time to switch payroll providers or use one for the first time. 

A payroll provider is a company that manages the process of paying employees on behalf of other businesses. They handle tasks such as calculating wages, withholding taxes, and distributing payments to employees. In theory, they should make your life easier and empower your business with better payroll processing. However, not all payroll providers offer the same benefits. Is now the right time to make the switch? Here are 8 reasons to switch payroll providers.

The Breakdown

  1. Difficulty in Accessing Important Information
  2. Inaccurate or Inconsistent Calculations
  3. Poor Customer Service
  4. Outdated or Limited Technology
  5. Unreasonable Fees or Hidden Costs
  6. Growth and Expansion
  7. Industry-specific Needs
  8. Integration Needs
Payroll providers should be able to approve your administrative efficiency and eliminate overhead. Payroll providers can target specific industries and needs.

1.   Difficulty in Accessing Important Information

If you are having difficulty in obtaining information about your payroll, this is a serious problem. Remember, this is the data of your business and employees. First off, it is a security risk. It may be a sign that the current provider’s security measures are insufficient. Payroll data is sensitive information such as Social Security numbers and bank account information. It’s important that this data is protected at all costs because someone could be exposed to fraud or identity theft because that information was stolen.

Second, if you can’t access that information quickly, it may cause frustration, decreased productivity, errors, and even loss of revenue.

2.   Inaccurate or Inconsistent Calculations

This is the one thing you hired a payroll provider to do. Calculate your payroll and they can’t even do this right! Inaccurate calculations can lead to additional time and resources to correct, dissatisfaction among employees, and even fines on your part. Most importantly, you are not receiving the value promised for the services.

You don’t want someone filing unpaid wages against you because your payroll provider continually messes up. If a company’s payroll provider consistently makes errors, it can result in penalties, fines, or even legal action against the company.

3.   Poor Customer Service

No one wants to be left in the dust when they need help. If a payroll provider’s customer support team is unresponsive or slow to address concerns or issues, it can cause frustration and delay payroll processing.

The best time to switch payroll providers is if you aren’t receiving the help you need. It would affect your ability to deliver accurate and reliable payroll services. Poor customer support can lead to additional administrative tasks, such as having to follow up multiple times or submit requests through multiple channels, which can be time-consuming and inconvenient for a company’s payroll team.

Also, the company’s reputation can be impacted, potentially leading to negative reviews or word-of-mouth.

4.   Outdated or Limited Technology

When it comes to payroll, technology is constantly improving. Long gone are the days of painstakingly recording payroll for more automated systems. Outdated technology from a payroll provider can expose the company to the risk of a data breach and inefficiency. Some signs that your payroll provider is working with outdated technology are:

  • Limited features
  • Limited mobile usage
  • Little to no updates to the software
  • Relies on heavy manual usage
  • Little or no analytical data or reporting
  • Little integration with third-party apps or systems
  • Clunky user interface

5.   Unreasonable Fees or Hidden Costs

Nobody likes hidden fees or costs, and it’s no different when it comes to payroll providers. If your provider springs special fees on you for simple payroll work, it may be good a time to switch payroll providers. You should know exactly how much your service is going to cost and how much it will cost you to onboard a new employee.

If you feel that your provider isn’t clear, it’s time to move on!

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6.  Growth and Expansion

Is your business growing rapidly? Then it may be the best time to switch payroll providers. Growth provides a unique circumstance that causes your payroll needs to change. For instance, your payroll may become more complex and require more sophisticated features and capabilities. Your original provider may not be able to keep up.

Another reason to consider is cost-effectiveness. A new payroll provider may offer more cost-effective solutions for onboarding new employees, offering more features, and using third-party integrations. Growth may also mean they fall under new regulations or need better technology for your company.

7.   Industry-Specific Needs

Do you run a business in a unique or specialized field? Some specialized fields need payroll providers that can do specific tasks for their field. If you find that your payroll provider is having a hard time with this, it may be best to switch to someone else.

8.   Integration Needs

The number and quality of integrations offered by a payroll provider can make a huge difference to companies. Most companies use a mix of software tools to achieve their goals, and it’s important that those systems be able to talk to each other, especially for remote workers. 

Integrating the payroll system with other HR systems, such as time and attendance, benefits administration, and accounting systems, can help automate processes and reduce the need for manual data entry. With integration, you’ll most likely have more accurate data to rely on. This data will also be easier to find as it will be housed in a central application.

Also, a company may need to manually enter data into multiple systems. With integrations, this can possibly is achieved just by using one dashboard. You wouldn’t have to input the same data into multiple locations.

Lastly, integration provides your company with the flexibility to add new systems and procedures without slowing your team down.

Looking for a New Payroll Provider?

Is your current payroll provider falling down on the job? Have you expanded your services, but your current payroll provider can’t keep up? Don’t worry! We’ve got you covered! Just fill out our 1-2 minute form and we’ll contact you to verify your information and needs. From there, you can receive up to 5 free quotes for free! It’s that easy!

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