We’re here to discuss payroll—more specifically, changing payroll. Switching to a new online payroll service is more than challenging than it appears. Though you might be dissatisfied with your current payroll, you might be bound to your current decision because of timing.
If you are in the middle of a quarter or a year, you will face several hurdles in transitioning into your new payroll solution. Every aspect of your payroll needs to be carried over. Because your year-end W2s and 1099s will be getting cut by your newest online payroll service, they will still need all the data from before you switched. Anything less will lead to inaccuracies. You will also be assuming some risk during the transfer. With extra steps comes an increased likelihood of mistakes during data re-entry.
To mitigate this, companies will change payroll services after a quarter, or even easier yet, after the end of a year. By doing it this way, there is nothing to carry over. When the new year begins, every dollar spent on payroll and payroll taxes will be documented by one solitary entity. You get to enjoy the benefits of a new business arrangement without the added stress of transferring payroll data.
Making The Transition
To save you time and money, let’s go over what you will need when you begin the process of using new payroll software. We can break this down into 4 categories: Your Business Information, Your Employees’ Information, Classifications, and Deposit Information.
For your business, you will need to have your Employer’s Identification Number (EIN), Tax ID, and your account number for your State Unemployment Insurance.
Though we are using the word, “employment,” we are talking about the people on your payroll. This could include contractors and employees. For these people, you will need their W4s and I9s.
Every person on your payroll needs to be classified as either an employee or an independent contractor.
Most, but not all employees and contractors liked to be paid through direct deposit. You will need to know their routing numbers.
Make The Right Choice With PayWow
When you hire someone to run your payroll, you run the risk of that person leaving. And when that person leaves, the expertise and experience goes with it. When you opt to use payroll software, you minimize this greatly.
And if you choose a worthy, reputable company, the risk comes practically nonexitest. When you use PayWow, you are getting a proven product, backed by a reputable, established company. Think of our history as our job interview and our success as our references.
Though this may be obvious, it still needs to be stated: not all payroll software is the same. How do they determine deductions and withholdings? Was their software designed to handle a company of my size? If I make a payroll mistake, who will help me?
With PayWow, the answers to these questions are straightforward. Our robust tax calculation engine will generate accurate deductions and withholdings. If you need to help with your payroll, we have a professional support staff to help you. Payroll is challenging, and we believe in providing you the results you are looking for: a clean payroll that is efficient and accurate.