May 30, 2024


Steps to success

7 Signs It’s Time to Switch Your Payroll Provider

7 Signs It’s Time to Switch Your Payroll Provider


Switching payroll providers can feel like a daunting task. There’s data to gather, systems to set up, and employees to notify. But it’s all worth it if you’re moving to a provider that works better for your needs and offers the kind of excellent experience that you want. So how do you know it’s time to switch? 


Sign 1: Running payroll is complicated and inefficient 

Running payroll doesn’t have to be a weekly headache. Some signs that you could improve on the process? 

  • You have to copy and paste or download and upload timesheet data into your payroll system
  • Finalizing timesheets takes so long it sometimes delays your payroll
  • Your payroll provider can’t handle complex pay rules, so you have to do a lot of manual calculations
  • You always have paperwork floating around from all the forms you have to keep track of for your employees

Sign 2: You’re experiencing payroll errors

It is essential that your payroll is correct. If your current payroll provider has made mistakes that lead to incorrect paychecks or even tax notices, it’s likely time to look for a new one.

Sign 3: Your payroll provider doesn’t offer time tracking

When you manage a business with hourly employees, keeping track of their hours and getting that info into your payroll system is important. If you don’t have time tracking embedded in your payroll provider, you likely have to move around a lot of data, which can lead to mistakes and errors. Plus, if you’re handling all the time tracking in another tool, you have to ensure hours and wages are being calculated correctly with state overtime and break laws yourself. 

Sign 4: Payroll costs too much

Some payroll providers nickel and dime you for everything you do. Charges for every payroll run, charges for forms, charges for W-2s, charges for changes – the list goes on. If the cost of your payroll provider is getting out of hand, that’s a good sign it’s time to make a change.

Sign 5: Your employees are having a bad experience

As a business owner, you know that employees are the backbone of your business. Your payroll provider should make it easy for them to access their pay stubs, payroll forms, records, and more. It’s a better experience for your team and a better experience for you, as you don’t have to field endless requests for info and spend time chasing down paperwork for everybody.  

Sign 6: Poor customer service

Is your payroll provider impossible to get ahold of? It may be time to switch if you’re experiencing long hold times on the phone, emails that go unanswered for days, and live chats that linger in limbo.

Another factor is if you can’t contact your provider via the method that works best for you. Love to call but your provider only has chat? That’s not a great fit. It’s time to find a provider with the kind of customer service that you deserve. 

Sign 7: It’s the end of the year

If you’ve been thinking about switching payroll providers but hesitating to make a change, the end of the year is the time to firm up those plans and make the switch. The end of the year is the best time to switch payroll providers because you do not have to migrate over data about the taxes your business has already paid for the year. You get a clean slate in the new year. Come November, start putting your plan into motion and get a new account ready to go so you can run that first payroll in January smoothly. 

Is it time to make the switch to Homebase Payroll?

Homebase offers time tracking and payroll all in one tool, making it easy to run payroll. Plus your employees get a dedicated app where they can access pay stubs and W-2s, view their schedule, switch shifts, communicate with other team members, and more. And you get support when you need it via email, chat, and phone. Learn more today.