There are a number of benefits to switching payroll companies, from better service to cheaper fees. We understand it is a big undertaking and you may be feeling daunted at the prospect. If you’re not sure where to start- we’ve created the following guide to switching payroll companies to help you through the process. Keep reading to find out more.
Decide On A New Payroll Company
The first thing to do on your checklist for switching payroll companies is to decide on the new provider you would like to go with. Consider the issues you are currently facing with the provider you have, so you can avoid this with your new choice.
- Are the fees they charge too high?
- Are your company and employment numbers growing?
- Or is the service simply not good enough?
Have a clear idea in mind of what you need first, and then research the company you would like to go with. Also, look into reviews before going ahead with switching your payroll over to them, see what other businesses that use them have to say. Have a clear understanding of the costs that will be involved, and make sure there won’t be any hidden costs you aren’t aware of.
Be Clear On The Tax Implications
If you choose to switch, establish which payroll company will be reporting to HMRC and when. Having a set date will help you avoid missing submissions or duplicating submissions.
Download Reports And Findings Just In Case
Before switching from your old payroll company, ask to download the important information they hold about your business. This means should for any reason the move not go smoothly, you have the data you need to keep your business running.
If your current payroll software is integrated with a HR system, make sure your new one will be too to avoid any data errors. It is also important that you remember to inform any stakeholders that will be affected by switching payroll companies.
End The Contract With Your Current Payroll Company
Once you’ve got a new payroll company in place, make sure you align the switches. If you don’t time the switch correctly and ensure everything is in place, it could cause some major issues in paying employees on time. This will usually be done through a parallel run, to ensure a smooth transition between the two companies. Try and time it so that your new company will take over from April. This makes it easier as your year-to-date reporting is clearer, saving on time and effort having to pass this information over if it was later in the year.
Passing On Details
The final step in your switching payroll companies checklist is ensuring the company you’re switching to has all the details they will need. This can include your business tax information, employee and salary details, and bank account information. Make sure they have this in good time to avoid any delays to payday.