Payroll

Implementing Payroll Software

Critical guide to implementing payroll software without disrupting employee payments.

8-12 weeks
Advanced

Implementation Steps

Understand all payroll requirements and plan transition timing.

Key Tips:
  • Review all federal, state, and local tax requirements
  • Document current payroll process and frequency
  • Identify all deductions (benefits, garnishments, etc.)
  • Plan go-live date (start of quarter preferred)
  • Notify employees of upcoming changes
  • Get buy-in from finance/accounting team

Common Mistakes to Avoid

  • ×Not running parallel processing - too risky to go straight to live
  • ×Choosing end-of-year for go-live - tax reporting nightmare
  • ×Missing obscure deductions or garnishments
  • ×Not verifying bank account numbers - payments go to wrong accounts
  • ×Insufficient testing of tax calculations - penalties are severe
  • ×Not having a rollback plan - leaves you stranded if issues occur

Best Practices

  • Always start at beginning of quarter for clean tax reporting
  • Run at least 2 parallel payrolls before going live
  • Over-communicate with employees about changes
  • Keep old payroll system active for 1 quarter after cutover
  • Create detailed audit reports comparing old vs new
  • Have your accountant review configuration before go-live
  • Build in buffer time - process payroll 2 days early at first
  • Document everything for compliance and audit purposes

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