Change Payroll Outsourcing Service Provider: Things to Keep in Mind
Payroll systems are now easier to switch from one structure to another, with the help of payroll processing
companies. It is also best to do these transitions during the start of a new fiscal year. This is because it
helps keep your financial data organised, and you can access both legacy records as well as current
records. If you are looking for the best in the business in payroll outsources please see TopSource Worldwide.
Below are steps to help you have a smooth transition to a new payroll system.
1. The Time
The time you choose to switch from your payroll system to another payroll outsourcing service is a key
factor that makes the transition smooth.
This is the very first thing to look at when switching to a new payroll outsourcing service provider. It
becomes a complex process when the transition is done in the middle of a fiscal year. Therefore, it is
important to find the right payroll management to ease the move.
Imagine how hard it will be to locate crucial financial data if it is all over the place; the taxes, financial
calendar even payroll.
The other thing to keep in mind is the contract you have with the previous payroll service provider. If the
the contract is still active, it is advisable for you to complete it to avoid overhead fees.
In addition, it is good to understand that it is best to give this implementation lead-time. If you decide to
make the switch at the end of the month, make sure that your new payroll service provider dispatches
payroll correctly, which is usually not possible. It is best to do this switch when you have the time and
bandwidth to handle payroll for that month.
Ask yourself what type of payroll services you need.
It is important to understand the kind of services your organisation needs. Do you need the exact same
services provided by the previous payroll firm or additional services as well?
With the above suggestions in mind, add other services you might require for your company and use that
list to evaluate payroll service providers and see which one suits your needs.
3. Terms of Contract
Prior to making the switch between payroll management companies, read over your current contract.
Look out for the type of clause added in your SLAs. If the contract requires you to stay with the payroll
company for 30 days before leaving, then do so.
For instance, a 45-day notice or cancellation fees amounting to INR 30,000.
Based on such a clause in your contract, act wisely.
After you have done the above, the next step is to research different payroll outsourcing service providers.
This is to aid in making the right decision when picking one. Gloss over different payroll companies
offering the same services, services that align with your needs, and carefully research into them.
The suggestions should be a guide in which direction to take in order to gather information regarding the
companies and their customers as well. Nonetheless, this will only give you an overview of the
companies. For more in-depth information, research the following:
Expertise in the industry
Costing and relevance to competitors
5. New Contract
The final step before going ahead with this decision is to understand the new contract. Get to know the
fees, migration clauses, key responsibilities as well as hidden charges included in your contract. Assess every
bit of it for clarity. The reason is that it will help you get a grip on the kind of services the company
will offer. Furthermore, it will help you enhance your relationship with the payroll management company
if you can rely on their legal proof.
With these tips, you should be able to make an informed decision on the right payroll outsourcing service provider.