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It’s a scenario that can leave many construction contractors uneasy: your trusted payroll service provider has been bought out by a different company. The acquisition may bring with it concerns about:

• Service disruptions
• Payroll functions
• Changes in fees
• The possibility of needing to switch to a new provider

While changes like this can certainly be unsettling, understanding how to navigate the transition can help you make informed decisions that minimize disruption to your construction payroll and business operations.

Here’s a step-by-step guide on how to manage the situation and ensure that your business continues to operate smoothly.

Key Takeaways

• When your payroll provider is acquired, start by gathering detailed information about the acquisition to gain a better understanding of its potential impact on your construction business and how you process payroll.
• Consider whether to stay with the new provider or explore other options based on the potential changes and disruptions.
• If you decide to stay, maintain clear communication with the new provider and stay proactive about any issues that arise.
• If you decide to switch providers, begin researching alternatives early. Include construction payroll service providers — like Payroll4Construction.
• Plan the transition carefully, coordinating with the new provider and asking questions about the setup process.

Step 1: Understand the Details of the Acquisition

The first thing you need to do when you learn that your payroll provider has been acquired is to gather as much information as possible about the acquisition. This will help you determine how the change may affect your business.

Review Official Communications

The acquiring payroll company will likely send you some form of communication (an email, letter or notice) outlining the details of the acquisition.

Be sure to read these materials carefully, as they’ll include important information about what is changing and what is staying the same.

Ask Key Questions

Reach out to your current payroll provider to clarify any questions you may have about the acquisition. Some key questions to ask include:

1. Will my current pricing structure change?
2. Will there be any changes to the payroll software or services I’m currently using?
3. Can I use my current system, or do I have to switch to the new payroll solution?
4. Is there a timeline for transitioning to the new system or service?
5. Will there be any disruption in payroll processing during the transition?
6. How will my data be transferred to the new system?

Having a clear understanding of these details will help you plan accordingly.

Step 2: Evaluate the Impact of the Acquisition

After gathering information, the next step is to assess how the acquisition will impact your construction business’s payroll processes. Here are some key considerations:

Service Continuity

Will the service quality remain consistent with what you’ve experienced so far, or will it improve or deteriorate?

Research the new company’s reputation for customer service, responsiveness and ease of use to assess whether they can meet your specific construction payroll needs.

Changes to Payroll Features

Some acquisitions introduce new software, tools or processes. The acquisition could also result in certain features you rely on being adjusted or removed entirely.

These changes could affect how you manage complex construction payroll requirements — like certified payroll, union reporting and multi-state payroll — potentially complicating compliance or adding new processes to your workflow.

Understanding these feature shifts will help you determine if the new system still meets your business’s needs or if adjustments are necessary.

Integration Capabilities

You’ll need to evaluate whether the new system will integrate well with your existing workflows or if you’ve lost access to certain integration capabilities.

For example, you should make sure that the new system is still capable of integrating your accounting data and human resources (HR) information with your payroll system to automate processes, reduce errors and simplify compliance with federal government labor laws and regulations.

Without clear communication about added or lost integration capabilities your projects could be delayed, or you may have to add staff to handle additional administrative tasks.

Pricing Changes

One of the most common concerns during an acquisition is potential price hikes. If your pricing is set to change, determine if the new pricing structure aligns with your budget and business needs.

Compare the new fees to other potential payroll providers to ensure that the service still offers good value.

Step 3: Decide Whether to Stay or Switch Providers

Once you’ve gathered all the information and evaluated the potential impacts, it’s time to map out your next steps.

You may opt to remain with the new provider if the changes seem minimal and the service is expected to continue meeting, or exceeding, your needs.

However, if you are concerned about the transition, pricing or service quality, you may need to explore other payroll service providers. Remember, even though your current payroll provider has been acquired, that doesn’t mean you have to follow them, there are options.

Staying With the Provider

If you decide to stay with the newly acquired provider, it’s important to stay in communication with them to ensure a seamless transition.

Make sure you know your point of contact and don’t be afraid to ask questions: the more you know about the implementation process, the less hassle you’ll experience.

It’s also important to be proactive about any payroll issues or concerns that arise. Continue to monitor the service and be prepared to reevaluate soon if necessary.

Switching Providers

If you decide that the new provider isn’t a good fit, you’ll need to find an alternative payroll service. Switching providers can take time, so start the process early to minimize disruptions.

How to Successfully Switch Providers

A successful transition ultimately comes down to communication between you, your employees and the support staff of the new payroll service provider. There are a couple steps you can take to make sure everyone is on the same page for an effective transition.

Research New Providers

Look for payroll services that cater to your business needs — like construction-specific providers. Additionally, consider factors such as customer support, industry name recognition, pricing and ease of use.

Check Integrations and Features

Ensure that the new provider offers an integrated platform that connects well with your existing HR and accounting software  and meets your payroll processing requirements. The end-goal should always include simplifying compliance items — like certified payroll and union tracking and reporting.

Ask for a demonstration to get a personalized tour of the system to see how it actually works.

Plan for the Transition

Work with the new provider to establish a clear transition timeline. Make sure there is no overlap in billing between providers and that all employee data is transferred securely.

Ideally, schedule the transition during expected slower periods of business to minimize disruptions to your workflow.

Communicate with Employees

Inform your employees about the switch, especially if it involves changes to their workflow or how they access their pay stubs, as well as any other employee self-service options.

Clear communication will help reduce confusion and ensure a smooth transition for your team.

Monitor New System

As you and your team learn, it’s important to regularly assess your new payroll service. This will help you raise questions about workflow and access to additional services and capabilities to your client support representative. It will also help you make sure the provider is still meeting your expectations.

Payroll4Construction is Built to Handle Construction Payroll Challenges

The acquisition of your payroll provider can feel overwhelming, but with the right approach, you can navigate the transition smoothly.

Start by gathering as much information as possible, evaluate the impact on your business and decide whether to stay with the new provider or switch to a different one with more industry-specific experience.

With careful planning and attention to detail, you can ensure that your payroll system continues to run efficiently, no matter who is handling it.

If you find that your current payroll service provider no longer meets your needs, consider exploring construction payroll service providers like — Payroll4Construction. Our in-house team is full of construction payroll experts, and we’ll simplify:

• Davis-Bacon requirements
• Certified payroll reporting
• Union reporting and tracking
• Multi-state, rate, trade and union payroll on a single timecard
• Fringe calculations

Speak with a dedicated payroll specialist today to schedule your free, personalized tour of Payroll4Construction.