Embedded Payroll 101: Migrations and Transfers

Behind the Paycheck

The Embedded Payroll 101 Series – Movement of Funds  |  Fraud, Credit Loss, and Security  |  Payroll Calculations  |  Payments, Filings, Compliance  |  Migrations & Transfers

What payroll providers should think about with migrations and transfers

As steps, such as payroll calculations, tax payments and filing, and fraud and security are checked off, the payroll provider needs to consider how they will assist their customers with the onboarding process. Will this go smoothly? As realized, payroll is messy and complicated, and it would be horrible to lose a customer due to not factoring in the steps involved with first getting them set up. 

What are payroll migrations and transfers

Simply put, this is the process a company undergoes when they start with a payroll provider or switch from one payroll provider to another. First, the information about their employees needs to be switched over to the new provider so employees can begin to receive payroll services from that provider.

Why migrations and transfers need to be addressed

When a client decides to change from one payroll software provider to another, understandably this is a critical time. If the process appears awkward and daunting, the customer may see migrations as too large a hurdle for moving to a better provider and decide not to change over.

What Can Go Wrong with migrations and transfers

The client’s payroll information needs transfer  without mishap. This process involves migrating all existing payroll and tax payment data for every employee to the new provider.

Migrations and transfers are  easy enough at the end of the year. But any other time, transfers of payroll information can be a more complicated process. 

Customers can perform this themselves if the UI allows them to do so, but they will need to rekey all the data. 

So, if this is not performed correctly, such as incorrect account ID, does not have proper TPA, wrong deposit frequency, or incorrect historicals can lead to payment issues. There is also the chance that there can also be tax payments and filing errors which can become large fines and penalties. 

How to Make migrations and transfers easier

The best means to counter possible issues from transferring payroll accounts is to offer excellent customer support through this tedious process. In addition, consider educating your staff and using technology to assist with the migration process from start to finish and everywhere in between.

Partnering with a knowledgeable embedded payroll provider can also assist with the process, eliminating the unknown by offering support from people who have done migrations and transfers hundreds of times. Just look for a partner with the technology and the teams to help support.

Key takeaway

Since this is the first and last step in managing a successful payroll software implementation, migrations, and transfers are the fine details that help customers succeed. A smooth process that removes all worry of errors will guarantee satisfaction and successful product growth.

Learn more about Embedded Payroll

Download the The Embedded Payroll Stack eBook and the Payroll Beyond the Paycheck White Paper.

Updated: November 14, 2022

Daniel Dean With over 10 years experience in HR tech, Daniel is passionate about payroll and everything HR. As a Gusto Embedded Sr. Product Marketing Manager, he believes this is one of the most exciting times for HR. Whether you're a HR professional, payroll administrator, business owner, or work for a SaaS solution provider, he believes we all have an important role to play in shaping the future world of work for the better.
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