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April, 2021

Tips for a Successful Mid-Year Payroll Conversion

How To Switch Payroll Providers Mid-Year

Mid-year payroll conversions can seem intimidating if you’ve never gone through the process before. For starters, making a change as significant as choosing a new payroll and HR provider can seem like more trouble than it’s worth. You may also be worried about potential disruption to your payroll processing. However, if your year-end processing was challenging, it may be time to consider switching payroll providers finally.

To help you make an informed decision for your company, we’ve compiled some tips for a successful mid-year payroll conversion. It could be the best decision you make this year.

Figuring out when to switch payroll companies can seem like a daunting task. Fortunately, you can change payroll companies anytime, but converting at certain times of the year provides a seamless data transition.

For example, switching to a new payroll provider at the start of a quarter decreases the risk of missed or lost information during implementation. So let’s talk about some tips for successfully converting payroll in the middle of the year. Making a change may be the best thing you accomplish this year.

What is a Mid-Year Payroll Conversion?

Mid-year conversions to a new payroll system typically start between April and July. The amount of time it takes to implement a new payroll solution depends on:

  • The complexity of your payroll and taxes
  • If you’re using any integrations with existing systems or having any developed
  • If your planning to implement other solutions like HR or time and attendance

Starting the conversion process during this timeframe ensures a smooth transition so you can process your first new payroll in July or August.

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When is the Best Time to Switch Payroll Providers?

Anytime is the right time to make a change if you’re unsatisfied with your current payroll vendor. However, the beginning of the year or quarter and the middle of the year are the most recommended times to start the payroll provider transition.

Converting at specific times of the year, like the beginning of any quarter, provides a seamless data transition. This approach can decrease the risk of missed or lost information during implementation.

No matter which time of year you choose to make a switch, an electronic implementation process ensures a smooth transition and eliminates manual data entry. One major factor contributing to a successful implementation is to ensure you are working with an experienced, knowledgeable provider. It’s essential to partner with a company that understands your unique challenges and is involved every step of the way to ensure your success.

Switching Payroll Companies Checklist

Mid-year can be an opportune time to convert to a new payroll provider. This handy payroll transition checklist provides the tools you need for a pain-free experience when changing payroll providers mid-year.

Questions To Ask When Switching Payroll Companies

During your research and evaluation process, ask the following questions to determine if a provider taking over payroll mid-year will accurately and adequately handle your conversion:

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What are the difficulties of switching payroll companies mid-year?

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Who will be involved in the conversion process?

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Will your unique needs be communicated from your sales representative down the line to ensure your data is set up correctly? How is this done?

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Will there be a dedicated project manager who provides a project plan with clear deadlines?

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Will the provider convert your data and import your payroll and employee history into their system?

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Will a payroll assessment be conducted to reconcile your data history?

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Will a payroll assessment be conducted to reconcile your data history?

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Will the provider run parallel payrolls prior to the first live payroll submission to confirm data and tax settings are accurate?

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Does the provider offer integrations with other systems you use, like retirement plans and general ledger packages?

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Will the provider conduct live training using your own company data?

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Will you have a dedicated customer support team that is easy to reach via phone or email?

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Will the provider ensure you are getting the most of your investment? If so, how?

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Does the provider have solutions specialists on staff to help with more complex questions and needs?

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Does the provider offer a help center with additional resources at your disposal?

What Do I Need When Switching Payroll Companies?

Knowing what payroll data you will need to give your new provider will ensure a smooth mid-year conversion process. Here are the critical pieces of information you’ll need to provide:

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Employee list with social security numbers and addresses, as well as direct deposit information for each employee.
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Company bank account information and tax ID numbers (federal, state, and local).
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State unemployment rates for all states in which you report.
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A list of employee deductions (e.g. health insurance, 401K).
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Copies of employee W-4s, garnishment orders, and current year Form 941 payroll filings (if available).
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Year-to-date payroll summary per employee, by quarter.

For a more straightforward migration process, you can also collect a list of employee emails and any outstanding issues with federal, state, and local agencies. Make sure you include copies of all correspondence with government entities. Your current provider can assist with gathering the payroll information we’ve mentioned. Ask for a payroll migration checklist, so it’s easier to keep track of the data you need to pull.

Make a Change for the Better

Switching payroll providers can be an overwhelming process, but you don’t have to wait until the beginning of the year to make a change. Mid-year can be an ideal time to convert to a new payroll service. Don’t continue to settle for an ineffective provider. Make the switch now to payroll software that meets your company’s needs so that you can feel confident in your payroll processing.

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