What is Global Payroll Implementation? [Expert Guide]

Ensuring your employees are paid accurately and on time is crucial, but it all starts with a successful implementation process. Partnering with your payroll vendor to set things up correctly from the beginning can save you a world of headaches down the road.

Improper implementation can lead to tax filing errors, compliance issues with government regulations, and even penalties. These short-term hiccups can snowball into long-term problems that take significant time and resources to resolve.

You can address these challenges with a payroll implementation plan that significantly enhances your operational efficiency.

In this article, we carry over some expert insights from our webinar—Navigating Global Payroll: Challenges and Solutions with Deel—to explain global payroll implementation. You’ll hear from experts including Deel's Head of Payroll, Vic O'Callaghan, and Global Payroll Solutions Consultants Alex Baker and Phil Smithers.

Understanding payroll implementation

Payroll implementation involves setting up a system to manage the calculation, distribution, and reporting of employee compensation. This includes integrating payroll software, configuring policies, and ensuring compliance with relevant laws.

A well-structured payroll system will help you make timely and accurate payments, maintain compliance with tax regulations, and keep detailed records for audits and reporting. It will also ideally help prevent errors, reduce administrative workload, and enhance employee satisfaction.

Steps to implementing a payroll system

First, let’s take a look at the basic payroll implementation process.

Implementing a new payroll system can seem daunting, but by following a clear roadmap, you can make a smooth transition and minimize disruptions to your workforce. Here are the key steps involved in a successful payroll implementation:

1. Planning and preparation

• Define your goals and needs: What are you hoping to achieve with the new system? Do you need increased efficiency, improved compliance, or better reporting capabilities?
• Assemble your implementation team: This team should include representatives from HR, IT, finance, and any other departments affected by payroll
• Research and select a payroll system: Consider factors like functionality, scalability, budget, and ease of use
• Develop a project timeline and budget: Outline key milestones and allocate resources to ensure project completion within time and budget constraints

2. Data collection and system configuration

• Gather and clean employee data: This includes accurate and up-to-date information like names, addresses, Social Security numbers, bank account details, and pay rates
• Define pay codes and deductions: Set up different categories for salaries, bonuses, overtime, taxes, and other deductions
• Configure the payroll system: Customize the system based on your company's specific needs and pay structures
• Integrate with other systems: Ensure seamless data flow between payroll and other human resources apps or accounting software used by your company

3. Testing and training

• Thoroughly test the new payroll system: Run test payrolls to identify and address any errors in calculations or data transfer
• Train your team on the new system: Provide comprehensive training for HR staff, managers, and employees on using the new payroll features
• Conduct a pilot run: Process a small sample payroll to identify and resolve any issues before full implementation

4. Go live and ongoing support

• Launch the new payroll system: Begin processing regular payroll for all employees
• Monitor and address any issues: Be prepared to troubleshoot any problems that may arise after going live
• Provide ongoing support: Offer continued training and support to employees and HR staff as needed
• Review and refine: Continuously evaluate the effectiveness of the new system and make adjustments to optimize performance

By following these steps and employing effective project management principles, you can achieve a successful payroll implementation and reap the benefits of a streamlined and efficient payroll process.

Benefits of payroll implementation with Deel

Deel’s payroll implementation and change management process is designed to offer maximum flexibility, transparency, and efficiency. By combining expert guidance, advanced technology, and top-tier support, Deel ensures your payroll system is not only compliant and accurate but also adaptable to your evolving business needs.

Dedicated implementation managers

Each Deel Global Payroll client is assigned a dedicated payroll implementation manager who provides expert guidance throughout the transition.

“You're given a payroll implementation manager who very much has the experience of being an expert within that country,” says Vic O'Callaghan. “They can provide you with 10, 15, 20 years worth of knowledge in operations and implementation to be able to seamlessly get you onto our platform.”

This manager becomes your main point of contact, helping to navigate through payroll implementation and offering tailored solutions based on your unique needs.

Deel's implementation teams build strong relationships with clients, understanding their evolving needs, ensuring the system adapts accordingly, and responding quickly to any changes required.

Personalized discovery and kickoff calls

Your initial payroll implementation call with Deel typically focuses on understanding your current payroll setup, policies, and requirements to help tailor the implementation process to your specific requirements. These calls are crucial for gathering detailed information and setting clear expectations for the project, as they help establish a roadmap and timeline for the implementation, aligning expectations and ensuring all stakeholders are informed.

“If you're in the UK, we want to know everything about your pensions,” explains Vic O'Callaghan. “How is your auto enrollment pension scheme set up? Do you have different policies in place?”

Easy documentation upload and validation

Clients can see all required documentation and upload it directly to the platform, eliminating the need for cumbersome Excel spreadsheets. This approach provides transparency and real-time updates, helping clients track the progress of their documentation and ensure everything is in order.

As documents are uploaded, they are reviewed and approved or rejected by Deel experts promptly, providing quick and clear communication. This reduces delays and enhances the accuracy of the implementation, especially during the compliance documentation collection.

Background checks are also integrated into the platform, which Deel can run through one of partners, which can be managed on the platform.

Clear expectations and communication preferences

It’s important to account for the time you can dedicate to a payroll transformation project, especially if you have a small payroll and HR team.

“We really want to make sure we don't put local payroll teams under too much pressure,” says Vic O'Callaghan. “We all understand how busy payroll professionals are—certainly at the end of the month when you're processing payrolls—so we want to be very honest and upfront about how much time you can dedicate to a project.”

Being upfront about the time available for the project helps in planning the implementation timeline effectively. If only a limited number of days per month can be allocated to the project, this must be factored into the plan.

For example, if a key stakeholder is on PTO in July, avoid scheduling critical tasks or documentation submissions during that time.

It's also vital to establish clear communication channels, whether through Slack, email, or another method, to make sure everyone is on the same page. Setting these standards early in the project helps ensure a successful go-live process.

Customized front-end configuration

With Deel, clients can make changes to payroll items, cost centers, and general ledger setups directly within the platform. This front-end flexibility allows for quick adaptations without needing backend changes.

The system’s intuitive design makes it easy to implement changes such as adding new incentive fields or modifying cost centers. This reduces dependency on support teams and empowers clients to manage their payroll configurations effectively.

Deel’s integrations with major HRIS, HCM, time, and attendance platforms reduces manual processes and improves data accuracy. Deel Global Payroll Solutions Consultant Alex Baker explains:

“Say for next month, I want to add in an incentive for my staff. I'll have that populated as a new field to go ahead and pay people out. If I want to change my cost centers, we can import those charts or accounts.”

Simplified data migration

When preparing to go into payroll implementation, teams should establish where their information is currently and how they want to clean it.

Is it in a centralized HR system, or is it with individual in-country partners? Which is the most accurate source of truth? Do you want to move it all into one centralized location for increased efficiency and data security?

Cleaning up existing data will help ensure accuracy and consistency when moving to Deel’s platform.

Full visibility during parallel payroll runs

Deel manages parallel test runs as part of the payroll implementation process to improve accuracy and reliability before going live. Clients can directly upload their parallel run information into the Deel platform. This uploaded information is then reviewed and either approved or rejected.

By managing parallel runs within the platform, clients maintain full visibility and control over the data. The platform allows users to monitor employee details and payroll cycle runs, ensuring all necessary information is easily accessible, and the approval process allows clients to see how their parallel payroll data is processed and validated.

This approach eliminates the uncertainty of handing over data to an external provider and waiting for feedback. Instead, clients benefit from a clear and transparent process where all activities are visible and manageable within Deel’s interface.

24/7 global support

Deel offers email support, phone support with toll-free numbers, instant messaging, and a dedicated customer success manger (CSM) who will be available during standard business hours. There’s also live chat for instant support—regardless of time zones—with a typical response time of 98 seconds, available 24/7/365, ensuring that any payroll issues are addressed promptly.

Deel’s AI systems play a vital role in customer support, routing tickets to the most qualified expert to reduce resolution times and improve accuracy.

“If you want to ask a question about payroll in Singapore, or you want to ask a question about mobility in Brazil, we can route it to the person that has the most amount of ability to answer it right the first time,” says Alex Baker.

Managing post-implementation changes

Even after a successful launch, your business may need additional payroll implementations down the road. This could be due to factors like new regulations or acquisitions, which often require tight deadlines to minimize disruption.

Here's where a focus on client relationships shines. By building a strong understanding of your unique payroll needs, we at Deel can tailor the implementation process to your specific situation. Our team of experts will be there to guide you through every step of the additional implementation, making sure your payroll system adapts seamlessly to your evolving needs.

“We build a lot of documentation at the beginning with the client—we're learning about what it is that really makes up that company, so that if we start seeing more mergers or acquisitions coming in, it's quite easy for us to work at pace,” says Vic O'Callaghan.

Deel has successfully managed implementations ranging from two weeks to 18 months, depending on the complexity and client requirements. This adaptability is supported by a skilled team that can rapidly adjust to changing needs, making the implementation process smoother and more efficient.

See also: Payroll Management in M&As: How a Global Solution Can Help

Payroll implementation FAQ