Managing a Payroll Department 13 APA's Top Payroll Questions & Answers for 2020 * You need to consider general ledger allocations for pay periods that straddle accounting months and consider benefit deduction recon if you go to 26 periods for deductions. * Since every employee's paycheck will change, communications well before the cutover is essential. Consider letting employees know what to expect a month or two in advance so as to minimize everyone's pain. You might want to go so far as to tell employees what their new standard pay and deductions will be after the change, in contrast to their current paychecks. * Possibly consider short-term wage advances (depending on the employees involved) up to a small dollar amount if needed for the transition. * Also consider making the switch around the payment of bonuses or commissions. Transitioning payroll providers Q. We are changing payroll providers next year. However, I think I would still need access to the current provider's software through March 2021 in order to generate Forms 941, generate Forms W-2, perform reconciliations, etc. We do not use the payroll provider's tax payment services; I do this now. If your company has changed payroll providers, how have you handled it? A. The easiest time to transition from one payroll provider to another is the first day of the new year. This is the cleanest time to make that break. Remember there are retention requirements for employee records and pay data (see The Payroll Source®, §10), and you'll need a user‐ friendly way of accessing the data once your services with the current provider end. You should review the contract you have with your current payroll provider. There may be provisions that address month‐ to‐month fees beyond contract expiration date and delivery of your 96https://bookshelf.americanpayroll.org/payroll_source/