Implementing a new payroll system for your business should be as easy as possible and careful preparation helps ensure the process goes smoothly. Without process reviews, data verifications, and communication to third parties, the implementation process can become extremely difficult for your new payroll provider. Both implementation time and cost could increase without proper preparation. Here are three key areas of implementation and planning to focus on when your business begins with a new payroll provider.

Review Your Process

Document your current processes from beginning to end. Clearly define the scope of your payroll process and key areas you wish to carry over or improve upon. Two primary review areas within your payroll process include:

1. Items to Identify:

• Various employee classifications (exempt vs. non-exempt)
• Different pay frequencies
• Reimbursement for expenses, if typically done through paychecks
• Benefits deductions
• Data entry and systems integration

2. Policies on hand:

• Attendance
• Paid and unpaid time off
• Commission and bonus pay

Evaluate Data

Obtain as much historical data from your current payroll system or process. If you cannot collect historical data, ensure your new process accounts for secure data storage. If employees now have self-service access to update their own personal information, determine how you would like to implement this process.

Here are examples of historical data you should include for the implementation go-live date:

• Find out where your legacy payroll and human resources data is stored
• Perform a review of your current data to verify accuracy
• Have employees update their personal information
• Map legacy data transfer to the new system: Focus on transferring both electronic and paper records, from in-house systems and vendors or payroll providers

Inform Third Parties

It’s critical to let third parties know about the changes to your payroll system. Payroll is interconnected with governmental bodies and regulations, unions, financial institutions, benefits providers and many other agencies. Below are the more common organizations to inform of your change in systems:

• Benefits providers – Begin planning the necessary integration steps by communicating with your organization’s benefits providers.
• Government agencies and unions – Make sure the new provider offers integration of applicable guidelines and business regulations.
• Banks – You will be required to update banks you draw your payroll from.

Customized Payroll Solutions

Doeren Mayhew offers you a powerful cloud-based payroll and workforce solution. This robust software is backed by our team of local experts, prepared to help make your implementation as smooth as possible.