Our company of 110 EEs has separate providers for payroll and HRIS, not happy with either products. I’m gathering data to make a pitch to move everything into an all-in-one HRIS + payroll.

Does it make any difference to make the change effective the first week of 2023 payroll, or to make a change in payroll providers mid year? I’m thinking it’s best to start fresh at the beginning of the year and not worry about two payroll companies for reporting. What are other things to consider?

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For tax purposes, it’s easier to do a cutover at the start of the year - otherwise there are multiple W-2s and high earners could end up overpaying on Social Security. Also, you need enough time to do the implementation, data migration and validations, and run at least one dummy payroll before going live. A change like that takes at least a few months - it’s doubtful you could do it before year end at this point without potential issues. I worked at a company that rushed it once and skipped the test payroll - it was a nightmare and I spent months after the cutover trying to fix all the data and processing issues. RFPs should give you their recommended timeline; it’s better to give yourself extra time if possible vs rushing it


Oooh I'd really hesitate to make the move until after your tax docs go out. So not the first week of the year but maybe at the end of Q1. Also while you're shopping around your RFP should include detailed info about support for data migration and overlap period so there's a redundancy on payroll for awhile.

We are doing the same thing but going live in Dec and running a mock payroll to ensure all is good

It really doesn’t matter on timing. You don’t have a ton of employees and the new system should be able to import all the earnings, tax, and deduction buckets to have 1 W2.

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