Insights

How to migrate to a new payroll system

Payroll migrations rarely fail on features. They fail on year-to-date balances, leave balances and untested configuration — all of which surface on the first live payslip.

The migration sequence

  • Scope: pay frequencies, entities, benefits, bargaining council rules, integrations and reporting
  • Configure: earning and deduction codes with correct tax treatment, GL mapping, leave rules
  • Migrate: employee master data, package structures, leave balances and year-to-date tax values
  • Parallel run: process the same period in both systems and compare per employee
  • Go live: run with extra review, then monitor the following two cycles

Year-to-date data is the risk

If migrated year-to-date values are wrong, every subsequent EMP201 and the annual EMP501 will be wrong too, and tax certificates will fail validation. This is worth reconciling employee by employee.

Timing the move

The start of a tax year is cleanest. Mid-year moves are workable with a careful year-to-date reconciliation — the approach used in payroll system setup and migration.

Frequently asked questions

Do we need a parallel payroll run?

Yes. A parallel run comparing gross, deductions and net pay per employee is the only reliable proof that configuration and migrated data are correct.

What happens to historical payslips?

They must remain accessible for the statutory retention period, either in the old system, as archived files, or loaded into the new system as history.

How long does a migration take?

A straightforward single-entity payroll usually takes a few weeks including a parallel cycle. Complex multi-entity or bargaining council payrolls take longer.

Migrate without a bad first payslip

Patuza handles configuration, data migration and parallel validation end to end.

Book a consultation

Related services

Related topics

  • IRP5

    Employee tax certificates: what they contain, how they are generated and why they get rejected.

  • EMP501

    The bi-annual employer reconciliation of declarations, payments and tax certificates.

Related insights