This page serves as guidance for PAYE parallel run testing.
Before you start
Complete any pre-parallel clean up tasks before parallel testing, this includes:
InTime Tasks
Placement data including worker and client details have been entered on to InTime. This may be populated through front end integration with your CRM or entered manually.
Verify that PAYE workers have synchronised from InTime to InPay. Use the filter options in InTime to check for any workers not yet linked to InPay. Review and correct these records as needed
Enter timesheet and expense data for each applicable placement. Ensure that all timesheets and expenses match the payroll period you are conducting your parallel test against.
InPay Tasks
Ensure InPay is fully configured. Review the Company and Payroll menu to ensure that you have configured items such as pension schemes, holiday schemes and set your Bacs parameters. Please note, that you will not be able to make changes to existing pension or holiday schemes when workers have been applied. We strongly recommend that you test your configuration before moving to the parallel run stage.
Enter Opening balances and any other payroll configurations to each applicable worker. See our data migration guide for further instructions. We recommend ensuring that your data here matches the data held on your old payroll software before proceeding with testing.
Check that you have entered any AWE (average weekly earnings) details for workers that may receive any statutory payments.
Parallel Running
Once the pre-parallel tasks have been completed, you are ready to begin your parallel testing.
We recommend creating a log to track any issues uncovered during your run. The log should provide details of the issue encountered together with the solution applied.
Using our PAYE workflow guide conduct your parallel run.
Reconciliation
Once you have completed the parallel run. It is time to reconcile your the net pay to ensure that InPay matches your legacy payroll systems, this ensures that all of the calculations in your new software are working correctly and it's ready to go live.
Running Reports
We recommend running the following reports as part of your reconciliation testing:
The reports listed below can be accessed through InPay: Reporting > Standard Reports
Report Details | Report Description |
|---|---|
Category: Pay | Report: Pay Summary YTD | Often referred to as a “Gross to “Net” report which outlines gross earnings, deductions (such as tax national insurance and pension contibutions), leading on to the net pay. |
Category: Pay | Report: Pay Method | Provides a net pay summary for each worker including the method of payment set on their record (e.g. Bacs or cheque). You can set this report to output the bank details which will assist record matching with your legacy system. |
Category: Pension Exports | Report: Basic Pension | Provides an detailed overview of the pension status, scheme enrolled in to together with contribution percentages. |
Category: Employee | Report: Holiday | Provides a summary list of workers which details, the amount accrued, amount taken, amount due and current average rate calculation which provides the estimate holiday pot value. Note: workers using the pay immediately scheme will not be included in this report. |
Category: Payslips| Report: Email Payslip | Provides a consolidated payslip file for all workers paid in the period. This will be useful for discrepancy comparisons. |
Accounting journal output report | This may vary depending on your requirements. Please consult with RSM for further details on your configuration and the report you should be running. |
Comparing your reports
Run the equivilent or similar reports reports from your legacy software and compare the balances.
Review your accounting journal output to ensure it meets your requirements.
Common discrepancies
We have provided a list of common descrepancies
Inconsistent Tax Codes: Check that the worker tax codes on InPay and the lagacy system match.
Incorrect Carry-Forward Balances: Check that all balances have been migrated correctly (e.g., PAYE tax paid, student loan deductions).
National Insurance (NI) Mismatches: Inconsistent NI numbers or misclassification of employees' NI letter category could cause differences.
Holiday Accruals and Entitlements: Review the holiday accrual and entitlement calculation. If the holiday accrual and entitlement processing rules differ between the legacy payroll and InPay, ensure that you are comfortable with the calculation InPay is applying.
Pension Contributions Errors: If differences arise as a result of contribution values. Check that the pension scheme has been correctly set up in InPay.
Statutory Payments Misalignment (SSP, SMP, etc.): Check to ensure that all staturory payment and decuctions have been applied to each applicable worker. You may need to enter Average Weekly Earnings (AWE) overrides for relevant workers, statutory payments like SMP, SSP, or SPP might differ between the two systems, leading to incorrect payments.
Leavers’ Final Payments: The parallel run can highlight if leaver data (such as final salary payments, P45 processing, etc.) isn't aligned correctly between systems.
Pay Elements Discrepancies: Some legacy systems may have different pay elements, bonuses, or deductions that might not fully transfer to InPay. Running a parallel will help identify if all components of the pay are accurately reflected.