Are you considering switching payroll companies but having a second thought? Think no further as switching Payroll service providers is now a seamless process that takes just a few easy steps. The good news is that it can be done almost any time of the year, you do not have to worry about the fiscal year.

Managed Payroll companies are always ready to help manage your transition process. One of the first steps for switching payroll providers in Canada is to notify your current Payroll service provider. Many Managed Payroll companies require their clients to give them 30-days notice. Clients are required to review the contract and subscription agreement with their payroll company.

Did you know that your current payroll service provider is required to issue Record of Employment (ROE) for every employee after you process your last payroll with them? This is a lesser known fact that must be taken into consideration when switching service providers. If the current provider fails to issue the ROE then the new provider won’t have access to a detailed per pay breakdown of Insurable Earning to prepare ROEs on your behalf. So, make sure that your current provider follows this step before you terminate their service.

And if ROE Web Authorization was signed with your existing provider, your new provider will have to be notified so they can register as the new Primary Officer (PO). By doing this your new PO will be able to submit online ROEs to Service Canada on your behalf.

The next step you’ll need towards your transition process will be to obtain up to date copies of all Payroll Register Reports. This report provides a complete summary of each payroll, including a comprehensive analysis of Net Wages, Payroll Taxes, etc. In cases where the switch is done mid-year, you will be required to provide the information available on the Payroll Register Reports to create your active and terminated employees profile with your new payroll vendor.

Usually, more steps are required in a work/contract termination situation, it is very important to get a Payroll Register Report as it is a significant component in switching to a new payroll provider in Canada, the report captures the Year-to-Date (YTD) data accurately. Without accurate YTD information, your new provider will be unable to issue T4s/T4As to your terminated employees during your year-end filing.

After all these steps are done, the next step is to request copies of Pay Stubs for all staff in your organization including contractors and terminated employees. Since your new provider will not have access to past pay stubs, you will need your current provider to give you soft copies of all past stubs for both active and terminated staff.

Lastly, ensure that your current provider does not file year-end reports on your behalf. Although most payroll providers are aware that once a switch is initiated, the employer/new payroll company will be in charge of filing year-end reports once the switch over is finalized.

Following these simple guidelines will help you steer through administrative challenges of switching payroll providers in Canada in an organized manner.