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After the first payroll is entered and processed the provider should go over the reports and output with you to make sure there are no questions or misunderstandings.
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- Payroll Service, Changing Providers. Chapter One. Reasons to change Providers.
- And. Payroll Service, Changing Providers. Chapter Two. What Should you Look for in a New Provider?
- What should happen when I change payroll service providers?
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Timing. It is easiest for all concerned to change payroll service providers at calendar year end. That way there is no question about responsibility for any tax forms or deposits. Every form, deposit or payment starting with January 1 is the responsibility of the new payroll service provider. There is no trying to balance the payroll numbers and make sure no terminated employee is missed and that all deposits were made on time. If you can’t change at year-end then calendar quarter end (March 31, June 30, and September 30) is second best. That said, if you need or want to, you should be able to change at any time of the year.
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How long should it take? The bigger the company the longer it will take simply because the more employees there are the more data there is. If you have employees in multiple states that will make the process take longer. You should however be able to take a business of 50 employees and change over in less than two weeks, from submitting the paperwork to a payday with the new payroll service provider.