When you subscribe to a cloud-based payroll system, you will get greater accuracy, efficiency, and security in your payroll processing. But first, you need to migrate your existing system to its new cloud-based home.

Migrating your payroll system can be an exciting but stressful time for you and your HR team. It isn’t a time-consuming process, but it can be complex. With a little planning, you can navigate this complexity in a relatively straightforward manner and in a short period of time.

After a successful migration, you should be able to not only run payroll smoothly, but also view payroll history and remain compliant with government regulations. Here’s how you can do that.

When to Migrate Your Payroll System

Timing when to migrate your payroll system is a crucial part of the process. You definitely do not want to commence migration during payroll season as that will just complicate things.

The best time to migrate is at the beginning of the month, just after the previous month’s payroll has been completed. If possible, migration could ideally be done at the beginning of the quarter. This is so payroll figures also square up with the figures in the finance department.

What You Need to Prepare

Typically, your new payroll system provider will let you know the information you will need to prepare. They will normally need access to these data:

  • Employee data for all current and former employees terminated during the year.
  • Payroll reports for the past seven years (statutory record keeping requirements in Malaysia) or two years (statutory record keeping requirements in Singapore).
  • Pay history including overtime pay, bonuses, expense claims as well as statutory deductions.
  • Your company’s banking information to enable direct deposits.
  • Your company’s commission structure and overtime pay policy (if any).

You will also need to ensure that the last pay run in your previous payroll software (if using) has been completed.

Checking and Verifying Your Data

If your existing payroll system offers a bulk data upload feature, you can use it to update your employee and payroll information before the data is extracted and given to your new payroll system provider. Otherwise, if your payroll is done manually using Excel, you can give the Excel sheet over to your new payroll provider.

Before this however, you’ll want to ensure that the data you gave is up to date. You will need to verify that the employee details are correct, as well as being accurate up to the last date of payroll. You may even opt to create a backup of this data in case something goes wrong.

Running the Actual Migration Process

Once you have given your new payroll system provider the information listed above, the heavy lifting can begin. The actual migration process involves lifting the data from the previous system, moving it to the new provider, and storing it securely.

With cloud-based payroll systems, the migration process is usually quite fast – around two to three days. But if you’re in charge of a larger organization, the process can take longer, especially if cross-border payroll is involved. Do plan with your new payroll system provider the migration lead time so you can meet your targeted switch date.

Testing and Validation

Once the data migration is complete, you will need to test the new system and revalidate the data before it goes live. Ideally, the data should tally with your previous system including employee data, timesheets, and the actual payroll.

Your new payroll provider can also help with the process. If you’re subscribing to more HR modules other than payroll – such as expense claims, leave applications, and timesheets, your provider can also test and customize the system so that it meets your needs.

You will also want to identify key stakeholders to get involved in testing, like your company’s CTO or CFO. Once all stakeholders have given the green light, you can go live with your new payroll system.

Ensure a Smooth, Painless Payroll System Migration with BrioHR

If you’re looking for an efficient, secure cloud-based payroll system, BrioHR is an approved* payroll software vendor. BrioHR’s first-class customer support will ensure that your organization’s payroll system migration goes smoothly and painlessly. This enables business owners and HR teams to truly focus on what matters most – people.

Visit briohr.com and get a free demo now.

*Approved by LHDN for Malaysia.