Choose a transition point you can support
Write down the current pay period, the next pay date, and the proposed first payroll date with the new provider. Identify who can supply records and approve the transition. A chosen date is only a planning target until the new provider confirms the requirements and the handover is agreed.
Map the records and responsibilities
Discuss the payroll history, opening balances, employee information, and other records the new provider will require through the agreed onboarding process. Clarify which provider or business contact handles each outstanding task. Year-to-date figures and unresolved corrections need explicit attention; do not assume they transfer automatically between systems.
Confirm the service in writing
Review the supported pay arrangements, fees, approval deadlines, access, correction process, and responsibilities before service starts. Ask what happens to records and access when the old service ends. Avoid cancelling a current payroll arrangement until the business has a workable plan for the next payroll and any outstanding obligations.
Keep visibility after the move
Retain copies of the records your business needs and review the first payroll against the approved information. IRS guidance recommends employer oversight when payroll duties are outsourced and warns against losing access to tax notices. Use official IRS resources and your advisers to understand obligations; a provider change does not itself transfer every responsibility away from the employer.
Official resources
Reviewed October 19, 2026. General planning information; confirm requirements for your own situation.