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  • Writer's pictureKarbonPay

HCM's and Payroll Must Talk

Preparing your HCM for Payroll integration

Integrating payroll with an organization’s HCM system is an excellent way to improve efficiencies, reporting, accuracy and as a result, reduce operating costs. Integrations around HCM systems are huge decisions as companies have often already invested heavily into their HCM software and processes. This often causes managers to expect more return from their investment than those systems are capable of. One of the most challenging but necessary requirements is payroll, and specifically to KarbonPay, cross-border payroll.

This is where KarbonPay shines.

Payroll integration will add value to the company’s HCM setup with a payroll solution that delivers accurate payroll on time, and saves the company time and money by streamlining and simplifying the payroll process. However, many are intimidated by the idea of another integration so we have developed procedures to lessen the burden of integration while continuing to develop a best in class product which provides immediate upside which quickly extinguishes any burden on the path of its implementation.

Here are some of our best practices recommended and used by our customers for the most efficient data migration possible:

  • Critical Data – these should be managed through a single integration method from one system to the other. KarbonPay has an integrated tool for data migration regardless of the country bring populated with employees. Currently, many global payroll providers use unique integration templates for each country which is non sustainable across a multinational company. While individual countries require different information, KarbonPay is able to handle it all in a single integration.

  • Non-Critical Data – two types:

    • Country-specific – flexible data that don't apply everywhere. Country identification numbers, social security numbers, pension numbers, provident numbers, tax IDs to name a few

    • Bank Details that depend on the country they operate. Currency, payment methods, banking procedures such as validation rules or clearing time are a few examples.

  • Payroll inputs – These are historical recordings within the payroll system which much integrate over such as recurring payments and deductions, non-recurring/variable/timesheet payments and deductions and leaves of absence.

With a clear understanding of the key data and how it is configured, as well as the data requirements specific to a company, and how those data fit into the categories mentioned above, a company is more assured of a seamless integration with their existing HCM and a payroll system such as KarbonPay.

KarbonPay already integrates with more than 40 HR systems globally, and a full list can be found here.

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