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Run the Payroll Fee Auditor →Blog · Payroll Management · Auto Dealership
Auto Dealerships: How to Switch Payroll Providers (2026)
Switching payroll providers at an auto dealership means moving year-to-date wages and taxes per employee, every pay code for front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks, the exemption records for salespeople and finance managers, and the retained records the law requires. BEG: $45 per employee per month inside the payroll software you already use, live in 3 to 5 days.
What has to migrate from an auto dealership
Year-to-date gross, taxes and deductions per employee so the W-2 is one form at year end; every pay code, front-end and back-end commission structures, flat-rate tech pay, F&I chargebacks and draw-against-commission, rebuilt with the same taxability; each state's withholding and unemployment account numbers and rates; garnishment orders with balances; direct deposit authorizations; and the exemption documentation for salespeople and finance managers.
For each employee treated as exempt under section 7(i), the employer must keep a symbol or notation on payroll records identifying the employee, a copy or written summary of the commission agreement including the representative period and its dates, and total compensation for each pay period showing commissions separately from noncommission straight-time earnings.
Timing the cutover
A quarter boundary is the cleanest cutover because the old provider files a final 941 for its quarter and the new one starts fresh, with no Schedule D reconciliation. Mid-quarter switches work but require the outgoing provider's tax filings to be reconciled before the first new run. Live payroll on BEG is 3 to 5 business days from signing; the migration of auto dealership pay codes is done before that first run, not after.
The rules behind this page, with sources
General information, not legal advice. Every rule below was read on the agency page linked next to it.
- For each employee treated as exempt under section 7(i), the employer must keep a symbol or notation on payroll records identifying the employee, a copy or written summary of the commission agreement including the representative period and its dates, and total compensation for each pay period showing commissions separately from noncommission straight-time earnings. [29 CFR 516.16]
Read the full guide to how to switch payroll providers, and the rest of the auto dealership payroll library.
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Frequently Asked Questions
When is the best time for an auto dealership to switch payroll providers?
At a quarter boundary, ideally January 1 so the W-2 year is clean. Mid-quarter is workable with a reconciliation of the outgoing provider's deposits and filings first.
What auto dealership data is most often lost in a switch?
The pay code configuration for front-end and back-end commission structures and flat-rate tech pay and the exemption records for salespeople and finance managers. Year-to-date figures usually move; the industry-specific setup is what gets rebuilt wrong.
What does managed payroll cost for an auto dealership?
$45 per employee per month, all-inclusive, inside the payroll software you already use, with no monthly minimum. Front-end and back-end commission structures, flat-rate tech pay and F&I chargebacks are configured at setup, not billed as add-ons.
Related Resources
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries including Auto Dealerships. BEG manages payroll at $45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
Authoritative source: U.S. Department of Labor: Wage and Hour Division
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