- Tax Configuration Errors: Misaligned tax setups can result in underreporting or penalties. - Leave and Benefit Miscalculations: Incorrect accrual setups violate labour regulations. - GDPR or POPIA Misalignment: Mishandling sensitive employee data can result in reputational damage and fines. Tip: Partner with a provider that prioritises built-in compliance, including automated updates for tax and labour laws. Confirm that compliance mapping is part of their implementation playbook. A payroll transition is not just an operational handoff - it’s a technical project that demands meticulous planning and execution. By investing in the right partner, tools, and strategies, you can turn what could be a bumpy road into a smooth path to long-term payroll efficiency.
- Dirty Legacy Data: Carrying over outdated or incorrect data causes long-term inaccuracies. - Insufficient Testing: Skipping parallel runs or UAT means critical issues surface after go- live. - No Reconciliation Strategy: Payroll results aren’t validated across old and new systems. Tip: Insist on multiple phases of validation, including parallel runs and reconciliation checks. Confirm the outsourced provider has automated tools to validate and clean migrated data efficiently. 5. Misjudging Resource Requirements Switching providers doesn’t mean your internal workload how much time and support your team needs during the implementation can derail the transition. Common Missteps: disappears - at least not right away. Miscalculating
- Internal Team Overload: Key HR or payroll staff are expected to manage migration tasks while handling normal business operations. - No Internal Project Manager: Without an internal point person, communication breaks down. - Budget Underestimation: Costs for data cleanup, integrations, and training are overlooked. Tip: Set realistic timelines and allocate dedicated internal project resources. Your implementation is a one-time opportunity - treat it with the same rigour as a software rollout. 6. Overlooking Compliance in the New Setup Even when you outsource payroll, compliance remains your company’s responsibility. A flawed implementation may create gaps that expose you to legal and regulatory risks. Common Missteps:
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ISSUE 12 GLOBAL PAYROLL MAGAZINE
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