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6 Steps to a Successful Payroll Implementation

Millennial Magazine - payroll-implementation

If your business has been putting up with a substandard payroll system, every aspect of your operations will suffer. Get rid of systems that no longer serve you and invest in newer, more functional options. Successful payroll implementation could translate to streamlined data flow and fewer manual systems. Here are a few essential steps to promote successful payroll implementation. 

Use the Right Software

Choosing the right payroll software for business is essential. With so many options in the market, choosing one can be a challenge. The software will be handling sensitive data, and it needs to be reliable.

Your internal needs have to be your top consideration. Before you start looking at different software options, please take a close look at your business and establish its most significant payroll needs. Ask yourself these crucial questions;

  • What do you need from your system? 
  • Are you looking to upgrade or completely change your payroll processes? 
  • Do you wish to improve the way you manage or review benefits enrollment? 
  • Should your software be able to track leave of absence?

Answering these questions increases your likelihood of getting the right software. Once you know what you want, choose a software vendor with a good reputation. You can get a sense of their credibility by checking out online reviews. 

Ensure that their support is reliable and easily accessible. One payroll error can have costly effects. The support team should answer your calls quickly and appropriately. 

Employee Training

Proper employee training is essential. If you are getting a new system, every member of your team should adapt to it. They should understand why it is important and take advantage of the improved efficiencies. Here are a few things to keep in mind for successful training

  • Include vendors in your regular payroll training. All your HR and payroll personnel should be present
  • Ensure that every employee understands key functionality like checking time off balances, printing W-2s, and checking pay stubs
  • Establish management reports to take advantage of your data
  • If you have any new business processes or terminology that may simplify system tasks, document them.

Create An Implementation Team and Plan

Delegate one or two people from your payroll team to help implement your processes. Choose people with credible management skills and a good understanding of your business objectives. Depending on the size of your company, you can add one or two more people to help in implementation tasks. If a manager is responsible for hiring and onboarding, for example, they can also be responsible for ensuring that the new system has all the vital documentation. 

Delegation is vital as it saves you time and helps the rest of your team feel included. When someone is in charge of implementation, it is easy to be accountable. 

Understand Your Local Payroll Procedures

Working with a local partner is important for successful payroll implementation. However, this doesn’t mean that you can get away with a poor understanding of the local payroll procedures and requirements. Every country has unique requirements, and rules that apply to one won’t necessarily apply to another. If your workforce is multinational, this is an important consideration. Payroll aspects that you need to keep in mind when working in different countries at the same time include:

  • Mandatory benefits
  • Standard work days and working hours
  • Life and medical insurance
  • Taxable items
  • Compulsory benefits
  • Non-compulsory benefits
  • Annual vacation days
  • Payroll reports and documents

Have Clear Expectations

When you have a new payroll system, you obviously have a lot of expectations. However, you’d be wise to keep these expectations realistic. Be realistic about the amount of time it would take to prepare and release employees’ payroll and ensure that their details are updated. This includes their:

  • Employment start date
  • Full name and date of birth
  • Address
  • Payment details, including their wage, bank account, and leave balances
  • Tax file number

While it is important to be clear about your expectations, you must ensure that they are realistic. Communicate with them clearly to reduce extra costs, dissatisfied employees, and unnecessary delays. 

Test Your Payroll System

Test your payroll system to ensure that it is easy to use. It should have an intuitive interface, and the underlying configuration should be consistent with your needs. Test your new payroll system a few times during the implementation stage to avoid disappointment now and in the future. Ensure that the system actually improves your operational efficiency and that the processed data is accurate. 

A successful payroll system is essential regardless of the nature of your business. If it is transparent and easy to implement, your employees will be paid accurately and on time. You can retain records for compliance purposes. 

What do you think?

Written by Kara Masterson

Kara Masterson is a freelance writer from West Jordan, Utah. She graduated from the University of Utah and enjoys writing and spending time with her dog, Max.

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