What is the least disruptive way to change payroll companies

What is the least disruptive way to change payroll companies

Selecting a new Payroll provider for your business can seem like an overwhelming process at first. But don’t worry, we are here to help!

In fact we have helped hundreds of companies since 2018 to successfully transition from their existing Payroll provider to Uzio.

If you’re looking at changing payroll companies, be sure you understand how it will affect you before you make any decisions!

The most important thing when choosing payroll company is knowing which features are most important in order to make an informed decision on which company will best suit you needs!

This could be an article describing all possible changes in detail so you can make an informed decision on which one is best suited for you?

In this blog we are going to cover the following:

  1. Reasons to change the current Payroll provider
  2. Best time of the year to switch Payroll company
  3. Steps involved in switching your Payroll provider
  4. Why choose Uzio

Major reasons to switch Payroll company

You must have encountered at least one of the following issues that is leading you to search for a better solution. This list is based upon our interactions with clients that have moved to us.

Area of concern Impact Type Potential Loss/Reason
IRS penalties Financial loss Thousands of dollars of potential loss because the payroll provider did not file your taxes on time
State penalties Financial loss Thousands of dollars of potential loss because the payroll provider did not file your taxes on time
Inaccurate W2s Poor Employee Experience Employees can not file taxes ontime
Lack of integration with your timecard system Manual work Waste of time and money, inaccurate payroll because of errors
Lack of integration with your GL system Manual work Inaccurate financial statements because of potential errors
Poor reporting capabilities Poor Employee Experience Waste of time and money
Poor customer service Poor Employee Experience Hours of time wasted to get simple answers
Exorbitant Cost Financial loss Nickel and dime for various payroll items
Reasons to change the current Payroll provider
Reasons to change the current Payroll provider

Best time of the year to switch Payroll company

  1. At the beginning of the year
  2. The beginning of a new quarter

At any point in time if you feel like connecting with us in this respect, our team is there to help. You can use the link below to book a call with us.

Steps involved in switching of your Payroll company

Once you have selected your new payroll provider, here is the breakdown of steps (or the list) which you should follow, for the least disruptive way to switch your payroll company.

  1. Ask your new payroll provider to give you their “client onboarding plan”. It will typically involve them sharing a checklist of items you will need to collect before your onboarding can commence
  2. Ask for a detail demo and training of their solution
  3. Setup a “kick off” meeting with your new payroll provider where they will walk you thru their onboarding process
  4. Collect the following information from your current payroll provider and share it with your new Payroll provider:
    • Employee census including their withholding details and their banking information if getting paid via ACH

    • Employee payroll registers for all the payrolls run in the current year

    • Copy of your 940/941 filed by your current provider

    • GL setup information including charts of accounts related to payroll expenses

    • Timecard setup information

    • Employee benefits information

    • PTO policies

    • Workers Compensation codes and rates

    • State withholding account details

    • State Unemployment Insurance details

    • Details for all the earnings, deductions and contributions

  5. Once your New Payroll provider has completed the payroll setup using the information provided, verify all the information in the new system
  6. Run at least two “Dummy Payrolls” in the new system and compare the results with the actual payroll run in the existing system. The numbers should match up-to the last cent. If not, your new payroll provider should be able to explain any differences to your satisfaction. For example, maybe an employee changes her withholding in the new system which will cause her pay and taxes not to match with the existing payroll.
  7. After doing a couple of “parallel payroll runs”, if you are convinced that the numbers coming out of the new payroll system are correct, you are ready to run your next payroll in the new system.

Why choose Uzio (over others in SMB segment)

Uzio is the one-stop Payroll, Benefits & HR Software for your business. It is the most affordable, simple & fully integrated cloud-based platform your business needs today.


So if you are looking for the most intuitive self-service portal, that provides you with a one-stop-shop for all your HR, Benefits, Payroll, and time tracking needs and also offers your employees an easy-to-use fully integrated solution.

Get in touch with us for an expert-led demo to know more about UZIO payroll services.