Why are customers required to migrate prior payroll history?

Migrating payroll history is only required when moving from one payroll service to another mid-year, after other payrolls have already been processed, and is crucial for several reasons:

1. Employee Records: Payroll history contains crucial information about employees' earnings, taxes, and deductions. It is necessary for the seamless transition of employee records, ensuring that there are no discrepancies in their pay and benefits.
2. Continuity and Consistency: Migrating payroll history helps maintain continuity and consistency in the calculation of taxes, benefits, and other payroll-related components. It ensures that employees' pay is accurately calculated based on their previous earnings and deductions.
3. Employee Confidence: Employees rely on the accuracy of their payroll records for financial planning and budgeting. Migrating payroll history ensures that employees can trust the new payroll provider to accurately calculate their earnings and benefits, fostering a sense of confidence and trust within the workforce.
4. Compliance: It is essential to maintain accurate records for compliance with various state and federal regulations. Employers are often required by law to keep payroll records for a certain period, and failing to migrate this data can lead to legal complications and penalties.
5. Auditing and Reporting: Payroll history serves as a reference for auditing purposes and helps in generating accurate financial reports. Keeping a comprehensive record of payroll data facilitates the process of internal and external audits and ensures transparency in financial reporting.

By migrating payroll history when changing payroll providers mid-year, employers can ensure a smooth transition, maintain compliance with legal requirements, and uphold the trust and confidence of their employees.