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5 Problems Delaying Payroll Implementation

December 14th, 2023 | 4 min read

By Jason Noble

business man on latter touching a large sandhour glass

The task of assisting payroll providers in the implementation of their services can be complex and daunting. Large amounts of sensitive data need to flow to and from multiple sources and destinations; be it your accountant’s tax software or your current and future payroll platform. There are several potential pitfalls throughout this exchange which could delay the completed implementation of services. You might miss a critical step, provide the wrong information, or provide the right information in the wrong way.

Pausing here; ready for a fun little Easter egg? Check your HR manager’s resting heart rate after reading that last paragraph. It should sync up with “Flight of the Bumblebees”.

Look, no one wants to hold up the process of paying your employees. That’s why it’s important to familiarize yourself with some of the most common problems that cause delays when implementing the services of a new provider. Lift HCM has managed payroll for businesses like yours since 1967. That’s why, today, we’ll go over common problems which can delay the start of your services. That way, no matter who you choose as your provider, you can be sure you’re doing everything in your power to move things forward in a timely manner.

Problem #1. Don’t Let Poor Communication Stall Your Payroll Setup

The success of your setup relies on thorough, transparent communication from you and succinct instructions from your payroll provider. The access, actions, and documentation you’re required to complete and provide should be communicated with enough background information to help guide your understanding of the setup without over-contextualizing things and melting your brain. There’s drinking through the firehose and then there’s waterboarding. Avoid the latter or you risk the anxiety of information overload paralyzing you and stalling implementation.

Your payroll provider should supply you with a clear roadmap laying out the steps to implementing their services. You should also some combination of the following:

  • A list of forms and documentation to complete,
  • The names, roles, or contact information to ping once they’re completed.
  • The names and email addresses with whom to share access to data and software login credentials.

A streamlined setup should feel like passing the baton in the 100-meter relay…because the author of this article totally made the track team and knows what that feels like (don’t look into that). Focused, objective communication is key to clearing up potential sources of delay in implementing payroll services with a new provider.

Problem #2. Poor Recordkeeping Practices May Delay Payroll Implementation

There are a number of ways in which sub-optimal recordkeeping can gum up the works when Implementing the services of a new payroll provider. Unless your incoming and outgoing providers are both operating on the same software platform, your data is likely going to be spread out across a few different sources. Doing your best to consolidate the dilution of data beyond that can streamline the migration to your new provider.

Even when your data is spread across media (i.e. a mix of digital and physical records), a good provider should make a conscious effort to minimize the burden of collecting and organizing the necessary information on your team. It’s also worth noting that switching to a new provider early in the year helps minimize the administrative burden of this migration.

Problem #3. Data Flow Affects Payroll Implementation Timeline

When it comes to implementing payroll services, the flow of data is everything. The human capital management (HCM) platform preferred by your payroll provider needs to seamlessly communicate with your accountant's tax software, as well as any other relevant software involved in paying your staff. While some amount of inefficiency is largely unavoidable the first time you run payroll, your new provider should be prepared to identify and correct for them before it causes any serious disruptions. Disruptions in your data  flow can delay the implementation timeline, potentially leading to poor payroll management and frustrated employees. This is why it often helps to find providers who’ve proven they’re able to establish efficient data flows between software platforms and data sources used to process your payroll.

Problem #4. Payroll Implementation Hinges on Responsiveness

One factor which can’t be overlooked when considering the timeline of payroll service implementation is the responsiveness of all parties involved; from your provider (both incoming and outgoing), to your accountant, to the members of your own team.

It’s important not to lose sight of reasonable expectations throughout your setup. Your provider will likely be much faster in responding to your staff and providing them with applicable resources than your teammates are in submitting any data and documentation they’re asked to provide. After all, it’s not muscle memory to them. You may even find yourself working around the schedule of government offices open three minutes a month every other leap year. A good provider should use their knowledge and experience to manage expectations surrounding turnaround times throughout the implementation of payroll services.

Problem #5. Payroll Providers Are Responsible for Keeping You Compliant

Providers hold a crucial responsibility in ensuring that your payroll complies with an ever-changing landscape of regulatory requirements. Failing to do so would put you at risk of facing audits, inspections, fines, and more. While non-compliance may not immediately bring your implementation to a screeching halt, they may require you to pump the breaks until your provider sorts things. It’s worth noting that it’s better to experience a delay during implementation while your provider works to steer you back to compliance than to suffer consequences for it down the road.

One Thing You Shouldn’t Delay? The Start of Payroll Services

Making the switch to a new payroll provider is a big decision and experiencing some amount of stress along the way is often hard to avoid. Learning about these five common roadblocks should help you minimize the delays they might cause and the toll payroll migration can take on your team. At Lift HCM, our dedicated implementation team works tirelessly to provide a smooth and streamlined onboarding experience to our clients. If you’re ready to start your managed payroll services, give us a call at (630) 366-2600 or contact us online to get started.

 

Jason Noble

Jason Noble is a seasoned expert in payroll and human capital management. With a wealth of experience in streamlining payroll processes and optimizing workforce management, Jason has successfully held key roles at leading organizations. His deep understanding of industry best practices ensures that his insights are both practical and authoritative.