PayrollSmall Business

Checklist for changing payroll processors

If you are planning to change payroll companies it may help to have a simple checklist of the information required. Today’s modern payroll systems allow you to enter the information online yourself or have your accountant handle the whole process. In either event, there are seven steps involved.

STEP 1: CONFIRM SERVICE AND PRICING

Engagement Letter: Get a clearly worded service agreement in writing that includes responsibilities and pricing.

Pricing: Modern providers typically offer lower pricing and a wider range of services than the past generation of payroll processors and so this often provides motivation for changing providers. Pricing typically starts at $30 per month for the first employee and $5 for additional employees for today’s basic payroll processors. Additional services will raise the price.

STEP 2: ENTER BASIC COMPANY INFORMATION

Company Legal Name and Trade Name (if applicable)

Federal Tax Setup Employer Identification Number (EIN)

Specify Tax Deposit Schedule (Semi-weekly or Monthly)

Specify Employer’s Federal Tax Return (941-Quarterly or 944-Annual)

Company Locations – Mailing Addresses, Phone Numbers, Filing Addresses (if different from Mailing Address), Fax Numbers for each location.

STEP 3: STATE TAX  SETUP

State tax setup varies by state. We will provide a customized State Tax Registrations web page.

STEP 4: BANK SET UP

This step is simple. Only two details are required:

Company bank account number

Company bank routing number

STEP 5: ADD EMPLOYEES

For each employee enter (or allow each employee to enter their own information):

Name

Hire date

Date of birth

Compensation

Home address

Title (optional)

Social security number

Email address

Federal withholding allowance

State withholding allowance

Bank account number

Bank routing number

Federal filing status

State filing status

STEP 6: ADD PREVIOUS PAYROLL INFORMATON

Enter YTD previous paystubs for all employees.

STEP 7: ENTER UNPAID TAXES

Enter unpaid tax liabilities (if any are not being handled by previous payroll provider).

YOU ARE FINISHED!

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