Payroll companies are an essential part of any small business, but the last thing you want to do when you’re running your own company becomes complacent in your relationship with payroll providers. If you notice these red flags during your next payroll process, it may be time to start looking at other options so that you can get the most out of your payroll experience. Read on to learn more about five signs it may be time to switch payroll providers!
1. Your Current Provider Doesn’t Offer Full-Service Payroll
A payroll provider that can’t do everything you need it to do—like withhold payroll taxes and provide valuable HR-related services like employee benefits management and employment verification—isn’t a good fit for your business. Even if you’re happy with your current provider, consider switching if it doesn’t offer full service. The headaches and costs of getting another vendor up to speed later on will likely outweigh any potential savings now. Your Taxes Change: If you change states or locations or even open new branches, you’ll need a new set of forms—and most providers don’t make these readily available unless you request them ahead of time. When in doubt, ask your provider what tax forms are available at no additional charge versus what you’ll have to pay extra for.
2. Your Business is Outgrowing Its Current Provider
If your company is expanding—whether you’re hiring more people or simply taking on larger projects—you might need a payroll provider that can scale with you. If it takes more than a day for a representative to get back to you about an issue, your business is probably too big for them. Similarly, if representatives don’t fully understand how your company operates and you have a lengthy call every time you talk with them, it’s probably time for a change. A small, nimble payroll provider can better adapt as your business changes and grow alongside of it. This way, their rates will likely be lower since they’re able to keep their overhead low as well as offer fewer services at those lower rates.
3. You Need Some Technical Help
All businesses change over time. As your company expands, its payroll needs will likely change, too. Over time, you may need a more advanced payroll software package with integrated HR and financial services. That doesn’t mean you have to switch payroll providers; it just means that you might need some technical help in making that transition (and you should definitely research your options). If an upgrade is in order, think about how many employees your business currently has and what kind of growth you anticipate down the road. Big changes? There’s a good chance that a different provider can save you time, money and headaches down the line.
4. You Want Better Rates
In a competitive industry, you should expect your payroll provider to offer low rates. If yours don’t, it might be time for a change. Take into account all aspects of your payroll services—not just rate comparisons—before deciding if you should switch providers. Some companies might charge less for basic employee data while charging more for other features, such as offering direct deposit and paying health benefits during a transition. See how your existing company stacks up against other businesses in your industry, but keep in mind that every company’s pricing model is different.
5. Your Current Provider Has Gotten Complacent
When you’re an established company, your payroll provider might take you for granted and assume that there isn’t any reason for you to switch. Even if they give you a discount now and then, they may not actually listen to your specific business needs or treat every client as an individual. In other words, it’s possible that your cis payroll service is treating you like a commodity—an impersonal client rather than a unique entity with distinct requirements. Before committing to another year of poor service from a lackadaisical provider, make sure your current business partner will continue working hard on your behalf. If they don’t try hard enough or promise increased attention moving forward, it might be time for a change.
