📝 Overview
This article walks you through the steps to cancel your prior payroll provider cleanly and at the right time. Following this process ensures a smooth cutoff between your old system and DaySmart Payroll.
🛠️ Steps to Cancel Your Prior Provider
1. Notify Your Provider Right Away
Once your first payroll has run in DaySmart Payroll, contact your prior provider immediately to let them know you're leaving. Acting quickly ensures:
They stop filing taxes on your behalf, avoiding duplicate filings
You avoid paying unexpected fees or liabilities tied to continued service
There's a clean, accurate cutoff between the old system and the new one
💡 If you're switching from a traditional payroll provider (such as ADP, Paychex, or Gusto), they will typically need to close your account completely. Make sure you've obtained all necessary historical reports before that happens.
2. Download Your Payroll Records
Before you cancel, download and save the following documents:
Prior payroll reports (quarterly and year-to-date)
Prior quarterly tax packages
Worker pay stubs and tax documents (W-2s, 1099s, etc.)
Any Power of Attorney (POA) forms or state tax registrations
You'll need these for your own records and for future audits, reconciliations, or worker questions.
3. Mind the Timing
Ideally, you've timed your switch to avoid mid-quarter or mid-year disruptions. If that wasn't possible, contact DaySmart Support and we'll help you bridge the gap.
⚠️ Important Note: Do not run payroll in both systems for the same period or the same check date. Running parallel payrolls can create duplicate tax filings and payment errors.
4. Confirm Final Filings
Before your account is fully closed, ask your previous provider to confirm the following:
When will the final payroll tax deposits be collected and submitted?
What are they still handling versus what DaySmart Payroll is now responsible for?
Will they issue year-end forms (such as W-2s and 1099s), or will those be handled through DaySmart Payroll?
❓Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
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Click the arrow to view frequently asked questions
When is the right time to cancel my prior payroll provider?
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Click the arrow to see the answer
Cancel after you've successfully run your first payroll in DaySmart Payroll. Canceling too early risks gaps in tax filings; canceling too late risks duplicate filings and unexpected fees.
What happens if I cancel my old provider before downloading my records?
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Click the arrow to see the answer
You may lose access to historical payroll reports, tax packages, and worker documents. Always download everything you need before closing the account. If you're unsure what to pull, refer to the list in Step 2 above.
What if my prior provider already filed taxes for a period that DaySmart Payroll also filed?
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Click the arrow to see the answer
This is a duplicate filing situation and will need to be resolved directly with the relevant tax agency. To avoid this, notify your prior provider to stop tax filings as soon as your first payroll runs in DaySmart Payroll.
Will my prior provider refund any taxes they withheld but didn't deposit?
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Click the arrow to see the answer
Yes, in most cases your prior provider should refund any taxes they impounded (withheld) but did not deposit. Confirm this with them during the cancellation process and keep records of any refund received.
Who handles year-end tax forms like W-2s and 1099s if I switch mid-year?
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Click the arrow to see the answer
It depends on who processed payroll during each part of the year. Your prior provider typically handles forms for the periods they processed. DaySmart Payroll handles forms for the periods processed in our system. Confirm the split with your prior provider before closing your account.
What if I need help with the transition?
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Click the arrow to see the answer
Reach out to DaySmart Support at any point during the cancellation process. We're happy to walk you through it and help you avoid any gaps or errors during the transition.