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As your team grows across borders, your payroll needs evolve. What once worked fine can start to fall short—especially when you’re managing different currencies, tax rules, and a mix of employees and independent contractors around the world.
Switching payroll companies might feel like a big step, but it’s also an opportunity. With the right partner, you simplify operations, stay compliant, and create a better experience for your employees—wherever they are.
In this guide, we’ll explain how to switch payroll providers, what to look for in a new payroll system, and how to make the move without missing a beat.
Reasons to switch payroll providers
There’s no one-size-fits-all payroll solution. But if your current provider is missing the mark—whether inaccurate pay, delayed deposits, or limited customer support—it may be time to explore other options. Here are a few reasons companies make the switch:
Limited support for global or remote teams
Managing payroll in multiple countries isn’t always straightforward. Some payroll services struggle with cross-border payments, local tax rules, and contractor classification, especially as your team becomes more distributed. If your current platform wasn’t built for international operations—and many aren’t—you may start to see delays, errors, or compliance gaps as you grow.
Recurring payroll errors or compliance concerns
Mistakes in payroll, benefits, or tax filings don’t just cause frustration for you and your team—they can chip away at employee trust and open the door to compliance risks. Payroll should be accurate and reliable by default, not something you have to double-check.
Poor customer service
Whether it’s a country-specific compliance question or a payroll delay, you need support that’s not just fast but informed. If you struggle to get timely, informed answers, consider it a flag that your payroll provider may not be keeping pace with your needs.
Outdated or clunky systems
Employees expect easy access to payslips, tax forms, and time-off balances. If your payroll system doesn’t support that—and creates extra work for your HR and finance teams instead—it's most likely time to switch payroll companies.
When’s the best time to switch payroll providers?
While switching payroll services is easier at certain times of the year, there’s no wrong moment to make a change if your current payroll system is causing problems. And the right payroll partner will simplify the transition process, no matter the timing. Here’s how timing can affect the process:
At the beginning of the calendar year
Starting fresh in January is often the easiest option. You begin with a clean slate—no need to import prior pay runs, adjust mid-year tax records, or reconcile overlapping data. Just keep in mind that year-end is often a busy time for HR and finance teams, with tasks like closing books, final pay runs, and annual reporting, so it helps to plan ahead.
At the beginning of a new quarter
Switching payroll services at the start of a new quarter also works well. You’ll need to carry over employee records and year-to-date earnings, but the quarterly break makes it easier to update your payroll system without disrupting pay schedules or creating compliance risks.
Mid-year
A mid-year switch in June or July often involves more prep work because you’ll need to migrate data from multiple reporting periods. But if your current payroll provider is causing persistent issues, it may be worth making the move sooner rather than waiting until the new year or a new quarter.
Switching payroll providers: A checklist
No matter when you make the move, switching payroll services doesn’t have to derail your day-to-day. With a clear plan and an understanding of the process, you can make the transition confidently. Whether you’re managing payroll locally or across borders, this checklist will help you do just that:
1. Review your current contract
First, check the terms of your existing agreement. Some payroll providers charge early termination fees or require notice periods. Give yourself time to wrap things up cleanly and avoid any surprise costs.
2. Decide on your transition date
Pick a go-live date that aligns with your internal workloads and upcoming tax or payroll reporting deadlines. Again, switching providers at the start of a new year or new quarter is often easiest, but any time can work with proper prep.
3. Choose your new payroll partner
Once you’ve decided on a new partner, ask for a detailed transition timeline. Most providers will walk you through the process and share a checklist tailored to their system that outlines what they'll handle and what you’ll need to prepare.
4. Notify your current provider
Give your current payroll provider official notice and request any necessary records. This typically includes historical payment data, tax documents, and employee details required to set up your new payroll platform.
5. Transfer and verify data
Send everything that your new provider needs, such as employee details, pay history, and local tax information. Depending on your location, you may also need to share company registration details or tax IDs.
6. Announce the switch to your team
Let your employees know about the upcoming change. They may need to set up new accounts, download an app, or update direct deposit details. Clear, early communication helps reduce questions later on.
Importantly, give yourself enough time to train your HR, finance, and people ops teams on your new payroll system. Your new provider should offer training and related support to help with the transfer.
7. Train HR, finance, and payroll teams
Make sure internal teams are comfortable with the new system. Many providers offer onboarding support or live training, so take advantage of it to prevent hiccups down the line.
8. Run payroll
If possible, do a test run before your first official cycle. Once you go live, monitor the first few runs closely. Confirm that taxes are calculated correctly, payments go out on time, and employee records are accurate.
How to choose payroll software
Switching payroll providers is a big move—and ideally, one you won’t need to repeat. The right payroll platform should scale with your team, simplify operations, and support your business as it grows. Here are a few key things to look for when evaluating your options:
Global compliance capabilities
Labor and tax regulations vary widely by country. The right payroll partner should help you stay compliant across borders, handling everything from local tax rules to employment classifications for international team members.
Local tax and employment support
Even within a single country, tax requirements also vary. Look for a payroll platform that understands location-specific deductions, contributions, and benefits, and can accurately and compliantly handle both employees and independent contractors.
Integrations with existing HR tools
Your payroll system should work seamlessly with the tools your team already uses, including your human resource information system (HRIS), benefits platform, applicant tracking system, or performance management software.
Ease of use for everyone
Employees need intuitive self-service tools to access pay slips, tax documents, and time-off balances. Your HR and finance teams should also be able to run payroll in just a few clicks, without chasing down data or manually entering figures.
Support for varied employee types
International teams are often a mix of full-time employees, independent contractors, and part-time contributors. Your global payroll provider should make it easy to pay everyone accurately and compliantly, regardless of classification or location.
Onboarding and customer support
The payroll system may check all the boxes, but what about the support behind it? Look for a provider that offers hands-on onboarding, practical training materials, and responsive help when your team needs it.
Security and data protection
Payroll involves sensitive personal and financial details. Make sure your provider follows rigorous security protocols and complies with global privacy standards.
Make global payroll simpler with Oyster
Switching payroll providers doesn’t have to be stressful, especially with a partner built for global teams.
With Oyster’s global payroll services, you can run payroll across borders, access key documents in one place, and pay your people on time in their local currency. Oyster's platform is built to scale with you, whether you’re onboarding your first international hire or expanding into new markets.
Ready to simplify global payroll? Book a demo to see how Oyster can support your team—wherever they are.
About Oyster
Oyster is a global employment platform designed to enable visionary HR leaders to find, engage, pay, manage, develop, and take care of a thriving distributed workforce. Oyster lets growing companies give valued international team members the experience they deserve, without the usual headaches and expense.
Oyster enables hiring anywhere in the world—with reliable, compliant payroll, and great local benefits and perks.
