When it comes to switching the payroll provider, most small business owners think that the end of the year is their only viable option. Fortunately, that’s not completely accurate! While it’s true that there are a few more complications when switching payroll providers in the middle of the year, it’s not as complicated as you might think. Considering the option but not quite sold on the idea? Here are five reasons that just might change your mind!
1. It’s Not Mid-Quarter
The best part about switching payroll providers in the middle of the year is that you’re starting right at the beginning of Q3. If you switch mid-quarter, your current payroll provider will be sending any taxes you’ve already submitted to them (that haven’t been paid to the IRS) back to you. Unfortunately, this can easily result in a wide variety of penalties and late fees for your business as you struggle to get the books back on schedule. However, you won’t have this issue if you wait until the beginning of Q3 to change your choice of payroll software for small businesses.
2. The Data Transfers Are Painless
It’s fairly commonplace for the new service provider to handle importing all of the previous payroll and tax records into your new payroll system. Importing old records is often what most employers worry about, but not only will this issue be handled for you, it’s usually done for free! This works out well for you since the new company will double-check to make sure your payroll is set up correctly and also provide you with a list of documents to collect from your previous provider before discontinuing service altogether. Once the data transfer has been completed, you’ll be all set to use your new payroll provider moving forward!
3. You Can Decrease Your Overhead Costs
With half a year behind you, chances are good that you’ve already identified areas that need cutbacks, and most likely one of those areas is payroll. Fortunately, thanks to the wide variety of payroll software and payroll service providers available, it should be relatively easy to find a company that meets the needs of your specific business without breaking the bank. By comparing plans and pricing from various vendors, you should be able to set yourself up for instant savings throughout the latter half of the year.
4. Enjoy Superior Customer Service
The majority of small business owners who use a payroll service provider are not payroll experts themselves, which is why choosing a provider with excellent customer service is so crucial. If your previous provider was unable to answer all of your questions or constantly gave you the runaround, now is a great time to address these issues head-on. We recommend looking at independent reviews when comparing providers since this will give you the most honest opinions when comparing other people’s experiences. By choosing a company with glowing reviews, you’re ensuring that your new payroll service provider will be able to answer any questions you might have.
5. You Can Upgrade from Your Current System
When it comes to managing your payroll, there are many different companies and thus many different options. Some employers may use an external service provider to manage their payroll, while others may use payroll software for small businesses. If you’re currently using an external provider, making the switch to a software-based approach could help you cut overhead costs and processing times. If you already use payroll software, now’s a great time to compare pricing and ensure that you’re getting the best deal on the services offered.
For the vast majority of companies, the payroll service you’re currently receiving is not the best value-for-money option available. By taking the time to look into alternative options such as switching providers or implementing payroll software, you can easily improve your payroll processing and enjoy a strong start to Q3!