Payroll information is sensitive, so the changeover should be planned carefully. Agree how information will be transferred securely, who is responsible for validation and how queries will be resolved before the first payroll is processed.
1. Agree the first payroll and cut-off dates
Confirm which payroll period the incoming provider will process and when changes must be submitted. Make sure the current provider, incoming provider and employer are working to the same dates, especially if variable pay or overtime is processed separately.
- Confirm the last payroll run handled by the current provider.
- Confirm the first period and payment date for the new provider.
- Agree data and change cut-offs for starters, leavers, absences and variable pay.
- Name a contact who can approve payroll inputs and answer queries.
2. Prepare employee and pay information
The handover should include the employee data required for the agreed payroll scope, using a secure transfer method. Confirm that the list of active employees is complete and that pay arrangements and recurring deductions are understood by the responsible employer contact.
- Employee master data required for payroll.
- Employment and pay details relevant to each employee.
- Recurring allowances, deductions and other agreed pay elements.
- Bank and payment information transferred through an appropriate secure process.
3. Bring forward year-to-date information
The incoming provider may need payroll information from earlier in the year to support continuity and reporting. Agree exactly which reports and figures are required, and reconcile them against the employer’s records before relying on them.
- Prior payroll reports and available year-to-date summaries.
- Details of payments, deductions and adjustments already processed.
- Relevant employee and employer year-to-date data, as applicable.
- Outstanding corrections or items that may need to be reflected in the next run.
4. Confirm leave, absences and changes
Leave balances and absence information should be reviewed for completeness before the first run. Flag starters, leavers, unpaid leave, sickness-related changes, overtime, commissions or any other variable items that affect the period being processed.
- Current leave balances and relevant absence records.
- Starters, leavers and employment changes relevant to the transition.
- Approved overtime, commissions, bonuses or other variable pay inputs.
- Any retrospective corrections or pending adjustments.
5. Validate the first run before payment
Build in time for review. Compare the first output with expected changes and prior records, investigate differences and obtain approval from the person responsible before payroll is finalised.
- Compare employee counts and key changes with the source records.
- Review notable differences from the previous payroll.
- Confirm the agreed approvals and payment process.
- Record corrections and make sure any outstanding issue has an owner.
Important: This checklist is general operational guidance. Payroll inputs, reporting and statutory requirements vary by employer and employee circumstances; confirm the exact requirements for your payroll before the transition.
Want help putting this into practice?
Accurixx can discuss the accounting or payroll support that fits your business and the work you need completed. The right scope should be agreed around your circumstances.