How to switch HRMS without a payroll going wrong

The risk in switching is not the new system. It is the first payroll after the move. Almost every problem traces back to a figure that did not come across, or came across as something else.

Before you move anything

• Agree a cut-over month, and freeze structure changes in the month before it.
• Export from the current system: employee master, salary structures, year-to-date earnings and deductions, leave balances, and loans and advances.
• Decide who signs off each file on your side. Payroll data needs an owner, not a folder.

Move it in this order

1. People and their structures. Every employee, their components, and what each component is (wages or not, for the labour codes).
2. Year to date. Earnings, TDS, PF, ESI and professional tax already paid this financial year.
3. Balances. Leave, loans, advances and reimbursements in flight.
4. Policies. Leave rules, approval chains and holidays.

Prove the first payroll

Run the cut-over month in both systems. Compare every employee’s gross, deductions and net. Every difference should have a reason written against it before anyone is paid from the new system.

With Flowy

Flowy reads your salary sheet in six steps: upload; say what your CTC figure includes; map each column (saved as a template for next time); validate, with every exception listed by cause and the blocking ones kept blocking; preview the result as a spreadsheet, with each row’s variance against your own annual figure and whether it passes the 50% test; then commit in one transaction, which you can roll back. Leave balances come in from an Excel sheet the same way. Year-to-date tax and loans are entered, not imported, so plan those two files by hand.