Should I Switch Payroll Providers?

Deciding whether or not to switch payroll providers can be difficult for many businesses. Your current payroll provider may seem perfectly fine on the surface, but minor issues can add up over time, resulting in administrative headaches. From compliance errors to poor customer service, there are many reasons why a business may start considering moving to a new payroll company.  

In this blog post, we'll explore the key factors to weigh when debating whether it's time for a change. We'll also outline the benefits of outsourcing payroll and address frequently asked questions about switching providers. Read on to gain insights that will help you determine if making the switch is right for your business!

Outsourcing Payroll to a Service Provider Brings Many Benefits

For small and medium-sized businesses, handling payroll in-house can become an unnecessary burden over time. The administrative tasks of calculating hours and wages, producing pay stubs, filing taxes, and keeping up with regulation changes divert precious time and resources away from core business operations. Partnering with a payroll service provider like Horizon can help lift these burdens off your plate so you can get back to growing your business. 

Optimize Your Business with Automated Payroll Services

A key advantage of using a payroll service is automating the entire payroll process! The latest payroll systems can seamlessly integrate with time-tracking solutions to automatically capture hours worked by your employees. Payroll data integrates directly with accounting software as well, keeping everything synchronized.  

Advanced automation streamlines payroll tasks like tax withholding, direct deposit, and pay stub generation. This eliminates the need to calculate each paycheck, allowing you to focus on strategic priorities!

Improved Accuracy with Pay Stubs and Tax Compliance

Payroll errors and compliance issues can quickly spiral into major headaches if not handled promptly and accurately. A professional payroll provider has the expertise and technology to ensure accurate paychecks and tax filings every time.

Their automated systems carefully validate each pay stub to avoid miscalculations. Compliance is also strictly monitored to prevent penalties for taxes paid late or forms filed incorrectly - this can give you confidence your payroll data and employees' paychecks will be error-free each pay period.

Ensure Timely Compensation with Ease

For employees, nothing is more frustrating than payday delays and unpaid wages. When you handle payroll yourself, even small mistakes can result in employees not getting paid on time! However, with an outsourced provider, payday is seamless and automated each period.  

These systems can proactively process payroll well in advance, so direct deposits hit employee accounts reliably on payday. Employees can also easily access pay stubs online through employee self-service portals; this convenience keeps compensation timely and straightforward for everyone involved. 

Employee Self-Service and Software Solutions for Pay Day

Speaking of employee self-service, this is another area where payroll providers can excel. The latest platforms make it easy for employees to handle their payroll tasks online, like viewing pay stubs, updating tax forms, changing direct deposit, managing vacation time, and accessing payroll history. This eliminates many routine administrative tasks for managers and HR staff. Employees also appreciate accessing their payroll details in one convenient place 24/7. 

FAQs About Switching Payroll Companies

When considering a switch, most small business owners have common questions about what's involved and how the transition process works. Below, we'll address some of the key frequently asked questions about changing providers.  

When is the Right Time to Change Your Payroll Provider?

Ideally, it would help if you aimed to switch payroll providers between a calendar year or fiscal quarters. This simplifies transitioning payroll data and records when starting fresh at the beginning of a new quarter or year.  

That said, switching at any time is also feasible, as most providers can work with you on a timeline that fits your needs. Just be sure to plan and give yourself at least 1-2 months before your desired transition date. This will ensure everything with the new system is correctly set up and tested ahead of time.

How Do I Know What to Look for in a Payroll Company?

The most important factors to evaluate when selecting a new payroll provider are: 

Technology - Look for modern solutions that provide a high degree of automation, integration, and employee self-service. This optimizes efficiency long-term!

Security - Ensure the provider leverages the latest data security protocols and guarantees confidentiality with payroll information.

Customer Service - Pick a provider known for responsive and knowledgeable support. This helps avoid issues when seeking answers.

Compliance - Verify the provider has in-house compliance experts that stay current on all payroll laws and regulations. This prevents penalties down the road.

Cost - Compare pricing models carefully and look for value-added services bundled in for one affordable rate.

Taking the time upfront to carefully evaluate providers on these criteria will pay dividends throughout your partnership. 

Is Outsourcing Payroll Expensive?

Most payroll providers today are incredibly affordable, especially considering the benefits gained. Many offer scalable solutions suitable for organizations of all sizes; things like customizable service tiers, per-employee or pay period pricing, multiple product bundles to fit specific needs, cost-saving add-ons like HR software, and volume discounts as your business grows.

When factoring in the time and overhead required to do payroll in-house, most businesses realize significant cost savings by making the switch. The right provider also delivers a far superior payroll experience at an accessible price point for almost any business! 

Looking to Switch Payroll Providers? Horizon is Here to Help!

If, after reading this article, you see signs it may be time to make a change, contact our professional team at Horizon to learn more about our payroll and HR solutions! We have helped many businesses optimize their backend operations by leveraging our technology, expertise, and award-winning customer support. Contact us today or check out our full list of solutions to learn more. 

We are a Trusted Partner for Small-to-Medium Sized Businesses

As a leading payroll provider, Horizon works with many growing organizations to provide a payroll and HR infrastructure that scales as you expand. Our tailored approach provides peace of mind as your business continues to grow and thrive! 

Tailored Solutions for Payroll, HR, Benefits Admin, and More

We make it easy to select just the solutions you need today with the flexibility to add capabilities over time. Our services span payroll processing, payroll tax filing, time and attendance tracking, custom onboarding and offboarding, performance management, and tax compliance. 

Top-Rated Payroll Services

With over 20 years in the industry, Horizon is a stable and reliable partner you can trust for the long haul! Our solutions and support consistently receive rave reviews from the many companies we serve.

Contact Our Team Today for More Information

If making the switch is the right move after reviewing this guide, contact our experts at Horizon to explore your options. We'll provide a complimentary assessment and demo of our platform to demonstrate how we can optimize your payroll and HR infrastructure!