2020 is finally coming to an end. And if you are thinking about upgrading your payroll and timekeeping system for January 1, 2021, here are a few steps to help with your transition.
Step #1: Determine Your Business's Needs -
- Do we need an integrated time clock with our payroll system?
- Would we benefit from an automated time clock?
- Do we need better reports to help us analyze payroll by department, position, or location?
- What services don’t we need (that we have with our current payroll company)?
Step #2: Research A New Payroll Service(s) - Once you have found a payroll service(s) you like, start researching them by asking yourself the following questions:
- What does the Internet say (Google “payroll company’s name review”) about this company?
- How long have they been in business?
- Is their payroll software easy to use?
- Will their system be able to handle our payroll and HR needs?
- Do they offer a time and attendance system?
Step #3: Gather (And Update) Your Current Payroll Data - Switching to a new service at year-end is the perfect time to update your employee information. You will also want to organize any documents the new payroll company might need, i.e., W-4s, Tax ID numbers, YTD and QTD totals, all employees’ bank account information for direct deposit, etc.
Step #4: The Payroll Conversion Process - When switching to a new payroll service, you will want to know how they will handle your payroll conversion process. Will your information be manually entered, or can it be easily imported? Look for a service that makes this process easy for you.
Step #5: Tax Payments And Filings - Make sure your current (not the new one) payroll service will pay 100% of your outstanding taxes and file any forms (for this year), as your new payroll company will not assume this liability.
Step #6: Year-End Forms - Make sure your current payroll service will handle all year-end forms such as W-2s, 940s, etc. What you don’t want is the new payroll service filing W-2s on your behalf, as you and your staff will end up getting duplicate W2s, etc.
IMPORTANT: How To Check If Your Payroll Taxes Are Up-To-Date?
Want to see if your payroll taxes are up-to-date? If you do, click here to access the Electronic Federal Tax Payment System’s (EFTPS) website.