When is the Right Time to Switch Your Payroll Service Provider

Years ago, changing payroll service provider was considered a headache as all the data provided by the company to the outsourcing partner had to be inputted manually. Changing vendors meant going through all the implementation and training cycles again with the new vendor.

But today with the change and advancement in technology and cloud based computing, switching service provider is not considered as difficult as it wasearlier. Though there are only two ideal time period in which your company should think of doing so:

• The start of the quarter
• The beginning of a new year

One should try to change companies as early in the calendar year as possible to make life easier of all parties involved as there is less data to transfer from your old system to your new one.

Whereas, some of the common reasons an organization can think about while switching to another payroll service provider are:


Poor Customer Service– One of the most important services of a payroll service provider is not actual payroll but their customer service like TDS applicability and ways to reduce TDS liability which is well advised by a legal compliant team only. All the services provided by them will not matter if they don’t communicate well with you, i.e., if your questions are not answered.

Too Time Consuming– If you’re spending too much time to manage and engage with the payroll system, then you should definitely think of switching to another partner. Payroll should be fast and easy, i.e., accurate as time is considered money and if one gets stuck with the training and on boarding processes on a regular basis it may get impossible to grasp the benefit out of it.

Accuracy and Consistency– For every company, accuracy is usually the top priority. Errors and mistakes can be corrected but repeated mistakes can turn out to be expensive for your company. It is therefore necessary to maintain consistency and integrity with the company at all times.

Growth– As the company grows, payroll fluctuates and so does your payroll needs. If the payroll system is unable to evolve with the needs of your company, then a better and more adaptable payroll system should be adopted.

Right pricing– If you feel the service provider is not providing with all the services it charged for and the payroll is incurring more cost than return it promised then you should switch to another partnerdetermining and evaluating ROI factor.

Therefore, you should consider all the above while making a decision of switching your payroll service provider. There is no point in keeping the present service provider if he is not providing what a company requires.

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