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5 steps to cancelling payroll services and switching to new provider

So you have made the decision to switch payroll providers!  While it may seem overwhelming, this should be a positive experience as you begin a relationship with a new provider that is a better fit for your organization’s payroll needs.  Switching is a good thing! Here are some steps to get you started:

 

Step 1:  Once the decision has been made to switch, you must notify your current provider of your decision.  Most providers ask for a 30-day notice of cancellation; however, more complex payrolls may have a set contract end-date.  Consult your contract for the specific terms set out by your current provider.

 

Step 2:   Once you’re notified your current provider, you will need to ask them to issue ROEs after your last pay run. While your employees will not need this,it is important that Service Canada knows the wages and hours worked by each employee over the past year. Payroll providers also know they have this responsibility.  Make sure to this gets done before officially ending the relationship with your current provider. Don’t let it slide because your employees don’t need an ROE at the moment.   

Because the new provider will transfer your year-to-date data into their platform, you will NOT have to ask for T4s upon conversion. If your organization was switching to Blue Canvas for payroll services, for example, we would issue the T4s for that year.  You do not need two sets of T4s just because you switched payroll providers during the year.

 

Step 3:  Now that you have finalized everything with your current provider, it is time to transfer information to the new payroll provider, including:  year-to-date payment, income tax, other deduction amounts, setting up payroll rules, and ensuring benefits are taxed correctly.  After a parallel run or two to ensure a smooth transition on the first live payroll run, your payroll system should be ready to go if all of this information was entered by the new payroll provider accurately and timely. 

 

  • Tip:  Check to see if the new payroll provider just simply inputs the data you give them or if they conduct a payroll review to make sure all the information you have given them is accurate.  Perhaps your now former payroll provider made errors.  Continuing  to tax benefits inaccurately as the former payroll provider did, for example, doesn’t make sense.  Why would you want to continue processing payroll incorrectly?  This is where your new payroll provider can really show value and expertise.     

Step 4:  The new payroll provider will fully train you on the new platform and involve you in the implementation process, which should give you comfort that your payroll is being processed accurately and timely.  Good training is the key!

 

Step 5:  Ask questions!  Make sure you feel comfortable using the new payroll platform before processing the first live payroll run.  If you don’t, go back to Step 4 and get more training.  Do not be afraid to ask questions. You are the customer!

 

Following these steps should make for a seamless transition.  Contact Blue Canvas if we can be of any help!

Author:
Tracy Bowman
Contact Blue Canvas.  We're here to help!
Email:
info@bluecanvasgroup.com
Phone: (204) 488-5698  |  
Toll Free: 1-855-690-6161

146 Commerce Drive
Winnipeg, Manitoba, CANADA
R3P 0Z6