5 Crucial Questions to Ask Before Choosing a New Payroll Provider

Have you ever walked into a car dealership, signed some papers, and driven off in a car you knew nothing about? Yeah, me neither!

Buying a car is a big decision, and it takes research. You want something reliable, cost-effective, safe, and enjoyable to drive. Naturally, you’ll ask the important questions: What’s the price? How fast does it go? What’s the fuel efficiency? How does it rank in safety? How does it compare to other models?

Choosing the right payroll provider is no different. You’ll be talking to sales reps, scheduling demos, and seeking advice from fellow business owners to make the right choice.

As a payroll provider, we hear a lot of concerns about making the switch and finding the right fit. So, we’ve done our research and come up with five crucial questions you need to ask a potential payroll partner to help you make the smartest decision for your business.

1. What does customer support look like for your services?

Will your new payroll provider assign a dedicated support person to your account, or will you be speaking with someone new every time you have a question? Do they prefer you reach out via email, call them, or search through an online knowledge base?

You don’t have time to sit on hold for hours or scroll through unhelpful self-service articles when you’ve got a payroll issue.  The world is full of frustrating 1-800s and unhelpful chatbots who don’t understand your specific needs, so it’s important to find out what ongoing support will look like before you change partners.

Dig into the details—ask potential payroll providers for client references, check out their online reviews, and make sure you’re not signing up for a customer service headache. 

Developing a relationship with a customer service representative will give you peace of mind and a personal connection with a complicated business. Find a payroll partner who dedicates a specialist to your account, so that you’re speaking with the same person every time you call.

2. What does implementation look like with your company?

Once you pick a payroll provider, the hard work begins. Switching payroll systems is a big deal, so it’s important to know what you’re getting into. Here are a few questions to keep in mind:

• How long will it take to switch over?
• Will I need to load all my old payroll data into a new system?
• Will my employees get paid accurately and on time during the switch?
• What does training look like, and how much of my time will it take?

Your time is valuable to you and your team. Most implementations take between 30 and 90 days, and your provider should handle the heavy lifting. That includes converting historical employee data, setting up the system, and making sure you know how to log in and make changes.

Make sure you get time with a specialist to train you and your team and explore any self-paced learning tools they offer.

The more you know about the process upfront, the smoother the transition will be, and the quicker you’ll be back to running payroll with confidence.

3. How much does your service cost, and what’s included?

So, you’ve found a provider with great customer service and a solid implementation plan, but how much is it going to cost?

Most payroll companies charge per payroll frequency, i.e., how many times you pay your employees per month (weekly, bi-weekly, or semi-monthly) or based on the total number of employees you have each month.

Many payroll providers charge a flat rate per employee per month + a base rate based on the services and modules you need. 

At Whirks, we simplify things by using a Per-Employee-Per-Month (PEPM) pricing structure. This means you’re billed a fixed amount for each employee every month, making it easier to predict and manage your costs. For businesses with more employees, this model offers a straightforward and scalable way to budget payroll expenses without surprises.

For example, our Core package costs a minimum of $125/month per legal entity when you have less than 13 employees. When you have more than 13 employees, that flat rate changes to $10.25/per employee per month.  

Refer to the table below to get a better idea of how PEPM pricing works!

4. Do you understand my industry and state(s)?

Every industry has unique intricacies, and your payroll partner needs to have a thorough understanding of your industry-specific challenges and compliance. 

It’s always a good idea to ask your potential partner how many businesses they help in your industry or if they’ve worked with someone in your industry before.

Another key question to ask your potential payroll provider is how many states they service. If you have employees in California, and your payroll partner doesn’t have clients in California, they might not be familiar with the state-specific wage laws, benefit laws, and HR regulations unique to that state. If you’re a multi-state employer, be sure to ask your potential partner how many states they work in and if they work with employers like you.

5. What other payroll companies should I be talking to?

Payroll companies know their competition better than you do. Don’t be afraid to ask your potential partner what other companies they would suggest talking to.

You and your business deserve the best - so don’t settle for less without taking your time to research several options. Ideally, you don’t want to undergo another payroll switch in the future.

Determining where you want your business to go and thinking ahead will help you eliminate certain providers that are better suited for different industries and sizes.

Create a list of these top needs in a payroll partner and ask for references from an owner who you know and trust. At Whirks, we encourage prospects to request references from recently onboarded businesses, owners who have worked with us for years, and even ex-clients. Switching providers is a big decision and you need to be happy with what you purchase.

Explore All of Your Options

There are plenty of trusted payroll providers out there, but you need one that fits your business like a glove. Think about what you really need—how you process payroll, manage timekeeping, and onboard new employees. Look at your current tech stack and be honest about any gaps.

Compare both local and national providers, paying attention to their pricing, support, and reputation. Make sure the timeline for implementation works for you, and that they understand your industry and state-specific needs.

At Whirks, we know we’re not the right fit for everyone. If you’re not tech-savvy or aren’t open to change, we might not be the best choice. But if you’re ready to simplify your operations and make payroll easier, we’re here to help you, get one step better.

If you're weighing your options, take a look at our article, Whirks vs. Big-Box Payroll Providers, to see how we stack up against the bigger names and find the right fit for your business.