Reasons to Break Up with Your Payroll Provider

Are you feeling stuck in a payroll nightmare? If your current payroll provider is causing more headaches than solutions, it might be time to consider a change. With budget planning around the corner for many of us, it’s a great time to review this service.

There are several reasons that can lead to a business breaking up with its payroll provider. Here are some compelling reasons to seek a better alternative.

Customer Service Issues (aka Poor Service)

Lack of Responsiveness: One of the most frustrating experiences with a payroll provider is slow response times and long wait times on hold when contacting customer service. One of our members recently told me they were on hold for the next available representative for four hours – yikes! When you have urgent inquiries or issues, you need a provider who is available and responsive, especially during critical times. If your provider is consistently unavailable, it's a clear sign that they are not prioritizing your needs.

Inconsistent Customer Service: Dealing with different representatives each time you contact your payroll provider can be exhausting. The lack of continuity and personalized service can lead to misunderstandings and inefficiencies. Many providers route you to the first available representative when your main contact isn't available. While they may work in Pods that serve the same accounts, it can be frustrating to receive different answers depending on who you speak with. Bottom line, unhelpful support staff, and difficulty resolving issues efficiently can be frustrating and can disrupt your business operation. You deserve a provider who offers consistent and reliable customer service, ensuring that you always talk to someone familiar with your account.

Blame Shifting and Poor Collaboration: A good payroll provider should take responsibility for issues and work collaboratively to resolve them. If your provider is quick to blame you for problems and lacks teamwork within their own team, it's a red flag. Effective collaboration and communication are essential for smooth payroll operations.

Understanding and Meeting Your Needs

Lack of Understanding of Your Needs: Your business is unique, and your payroll provider should understand and cater to your specific requirements. If they offer generic solutions that don't fit your needs or make no effort to understand your business, it's time to find a provider who will.

Overpromising and Underdelivering: Promises made during sales pitches should be met with actual performance. If your payroll provider consistently overpromises and underdelivers, leaving you disappointed with their services, it's a sign that they are not reliable. You need a provider who delivers on their promises.

System and Integration Issues

Frequent Errors: Regular mistakes in payroll processing can cause significant financial and operational disruptions. If your provider is prone to errors, it's not just inconvenient—it's unacceptable. Accuracy is crucial in payroll, and you need a provider who gets it right. I was recently working with a member who had a union with shift differentials, job code differentials when an employee had to switch to a different job mid-shift, attendance bonuses, variable overtime calculations, etc. After several calls, emails, and conference calls with the provider, the payroll professional still had to use a separate spreadsheet to ensure compliance with their union contract. No one should have to do this. Needless to say, they are on the hunt for another provider as I type this.

Poor Software Integration: In today's digital age, seamless integration with your existing software is essential. If your payroll provider cannot integrate with your systems, requiring manual processes, it's a major drawback. Look for a provider who offers smooth and efficient software integration (i.e., if your accounting software needs to integrate, be sure to have your accounting team, along with the payroll provider's GL Specialist, on the same call so you can have an in-depth conversation into whether something is going to work for you or not).

Training and Support

Insufficient Training: Effective use of a payroll system requires proper training. If your provider fails to offer adequate training or ongoing support, you're not getting the most out of their services. A good provider should empower you with the knowledge and resources to use their system effectively. This should not only be offered as on-demand training through their payroll university platform within the system itself but also be available through virtual meetings with your account representative when requested. Merely stating “just go watch a video” is always not effective training.

Limited Self-Service Options: Employees should have the tools to manage their own payroll information. If your provider offers inadequate self-service options, forcing you to depend on them for simple tasks, it's a limitation you shouldn't have to accept. Seek a provider who offers robust self-service tools.

Hidden Fees and Costs: Unclear pricing structures, unexpected charges, and a lack of transparency can make it difficult to budget for payroll and lead to financial strain. Find a provider that doesn’t charge you an arm and a leg to make a minor change, such as a GL account that is not working correctly, etc.

Reporting and Automation

Inflexible and Stagnant Reporting: Reporting tools should be customizable and adaptable to meet your needs. If your provider's reporting is inflexible and stagnant, it's a hindrance to your business operations. You need a provider who offers dynamic and customizable reporting solutions. You also need a provider that allows various reports to be uploaded instead of manually entering commissions, spiffs, bonuses, etc., that occur on a regular basis.

Lack of Automation and Flexibility: Manual processes are time-consuming and prone to errors. Repeated mistakes such as incorrect payments, missed deductions, or tax errors indicate a provider's inability to handle payroll accurately. If your payroll provider lacks automation and flexibility, it's a sign that they are not keeping up with modern business needs. Look for a provider who offers automated solutions and can adapt to your changing requirements.

Compliance Issues: Payroll regulations are constantly evolving, and a provider that fails to keep up with updates and changes can expose businesses to legal and financial risks.  All of us know that various state taxing and reporting responsibilities are cumbersome and require a lot of attention to detail, especially when your company hires someone new in a state you have not already established with your organization. Look for a provider that supports state taxes. Also, be sure to stay informed about legislation that involves changes to tax reporting with no taxes on overtime, etc., to ensure your payroll provider is on top of it.

As you can see, there are a lot of reasons you may feel it’s time to change your payroll vendor to best suit your needs going forward. Whether it’s one mentioned above or another issue that’s pushing you towards switching payroll companies, if you are stuck in a payroll nightmare, let us help ease the headache. It's time to break up with your current provider and find one that truly understands and meets your needs. Don't settle for less—your business deserves the best.

When it comes to payroll expertise, MRA is here to help. From payroll administration to our payroll professionals roundtables, we offer a variety of resources so you don’t have to do it on your own.