Mid-Year Payroll Conversions & Why It Is the Best Time to Switch

July 7, 2020 - minute read

As the first half of 2020 comes to a close, many employers find themselves assessing ineffective workforce management solutions and the ways they can improve them in the second half of the year. If you are experiencing setbacks due to your current payroll system, rest assured- you don’t have to wait until the end of the year to make a change.

If your payroll solution isn’t measuring up, it may be time for a mid-year payroll conversion. After all, there’s no better time than the present to invest in a new solution and a strong finish to the year. Here’s a breakdown of the payroll features your business needs and how to confidently convert to a new solution this summer.  

Key Ingredients of Ideal Payroll Solutions

While transitioning to a new payroll system mid-year is often thought to risk tax compliance, data accuracy, or technological compatibility- the truth is that the right provider can handle every aspect of your business’s payroll conversion with ease. If you’re struggling to determine whether it is in your best interest to switch solutions at this time, check out our eBook: When You Know It's Time to Switch Payroll Providers for a deep dive on the key signs of an inadequate payroll system.

If your solution doesn’t measure up to these standard payroll capabilities, it’s definitely time to make a change. In addition, you’ll want to invest in these features as well:

  • Paycards: Pay cards are a quick and effective way to pay employees while also saving on paycheck printing, mailing, and related distribution costs. They are easy to use and convenient for employees because they operate like debit cards—a great advantage for workers who do not possess traditional bank accounts. Check out our 60-Second Guide to Paycards.
  • On-Demand Pay: On-demand pay programs are administered through third-party providers and work directly with your vendor. These programs give workers access to a user-friendly app and allow them to request prompt payment at the end of the work day based on their hours without having to wait for the end of a pay period.
  • Job Costing: Job costing is a feature which can track and assess your labor expenses and job costs by site location, department, client and task. This data can lead to predictive workforce management and invaluable cost-savings. It aids informed decision-making for better labor budgeting, overtime parameters, and even ROI.

Given the cost-saving benefits and influence these features can have on employees for retention and morale, you are likely ready to make the change. Let’s cover a few due diligence tips for ensuring a successful payroll conversion.

Tips for Successful Mid-Year Payroll Conversions

  • If you aren’t switching at the beginning of a year, consider the start of a fiscal quarter or the middle of the year as the ideal times to convert solutions. These periods allow for a more seamless transition of data and can significantly lower your risks of transitioning payroll and tax information during implementation.
  • Make sure you bestow a full history of employee payroll data to your new provider, including changes that may have occurred up to this point. Doing so ensures your critical data is transferred and that your new vendor comprehends any unique payroll and tax management needs moving forward. It can also be used to facilitate things like job costing right from the start.
  • Ensure your provider has the flexibility to handle multiple pay frequencies and pay rates from the get-go. Being able to create different pay groups and apply different pay rules will allow for a smooth implementation period and transition for all your various employees and worksites.
  • Clarify that your new payroll system can integrate with other pre-existing systems and workforce management tools (i.e. time and attendance solutions, retirement plans, general ledger software, and other workforce management investments). It’s crucial that your provider can assure a secure, compatible exportation of data from one system to another.
  • Make sure to contact and cancel any other tax services you may have previously been using to eliminate duplicated federal, state, and local tax-filing. Moreover, make sure your new provider is capable of multi-state tax management and can verify whether or not you’ve underpaid or overpaid any part of your taxes for the current year thus far.

At EPAY Systems, we understand the importance of having a robust payroll system working on behalf of your business, as well as the stressors of converting to a new system. That’s why we have perfected our implementation process and are ready to assist you with free premium customer support 24/7. Curious to see what our other Human Capital Management features can do for your business? Register for a live demo of our HR and Payroll solution today!

Filed Under: Payroll & Tax COVID-19