Payroll migration shouldn’t be a nightmare
They say that moving house is one of life’s most traumatic experiences. After the excitement of moving to a new location wears off, all you’re left with is the sinking dread of actually planning and executing the move. Then you have to get used to your new surroundings full of strangers and unfamiliar routes – it’s no child’s play.
Similarly, payroll migration can be a stressful process. Once the euphoria of upgrading is gone, the arduous work begins. Now you’re in new territory with different rules and you’re always worried you left something important behind.
What if we told you that it doesn’t have to be that way? Every business goes through systems migration as it grows and evolves, but a bit of smart planning can significantly minimise your stress. Fortunately for you, we have the smarts to make your payroll migration planning flawless.
Here’s our checklist:
1. Know when to switch
The first thing you need to do is decide when you will be switching. We recommend you go live on your new payroll system at the beginning of the tax year. This ensures that your business starts on a clean slate without importing any historical payroll data from the previous tax year. That’s not to say that you can’t migrate in the middle of the tax year – it’s trickier, but it can be done. You need to ensure that your legacy and new payroll system are compatible so that you can automatically import data from the tax year. Manually re-entering the data into your new system works too, but it introduces the possibility of human error.
2. Update employee data
Payroll migration is the perfect excuse to review the data you’re currently keeping to see if it is accurate, up to date and whether it’s worth storing at all. Incorrect data can lead to inaccurate payroll calculations, which can be costly. Additionally, there could be years of payroll data stored on the legacy system that is no longer useful to you. This is an excellent opportunity to get rid of digital clutter that could be weighing your server down.
3. Brace for the big shift
Compliance and data security are the most important things to keep in mind while migrating your payroll from one system to another. Your employees rely on you to keep their information well-guarded and to only make copies when necessary. Legislation such as the Popi Act also requires you to follow strict guidelines when processing personal information. If you’re performing a manual migration, you might have to consult with a Popi specialist to ensure that you have met all your compliance obligations.
4. Test your new system
It’s essential that you test your new payroll environment before going live, especially if you entered data manually. Run a series of operations on your legacy system, then run the same operations on your new payroll system. If the outcomes aren’t the same, it means there could be a data entry error or missing information. You have to test your payroll system until it can do everything your legacy system can without discrepancies. Once you’ve achieved that, you’re ready to go live. But not without one final step…
5. Train your staff
You have to familiarise all stakeholders with the new payroll system. If you’ve done your homework, you’ll be migrating to a platform that is intuitive and easy to take to, but it’s still a new neighbourhood and there will be a period of adjustment. If your new system also integrates with other HR functions and employee-facing functions, you’ll have to facilitate a smooth transition for your whole staff. Some payroll providers offer demos that can be requested before or after you’ve committed to a software solution so be sure to ask the right questions.
Or, skip the checklist and call R&A
When you partner with R&A, you can be confident your payroll is in good hands with PaySpace, a leading payroll software solution. We help you select the right platform for your business based on your business’s unique needs and facilitate the implementation process from start to finish, including upfront demos, staff training and ongoing support. We can also help you manage your payroll monthly so your employees are always paid accurately and on time – and you have one less thing to worry about.
Are you ready for a payroll upgrade? Contact us today.
