Some of the most important payroll data is usually stored outside your payroll system. Government or union rate tables, specific minimum rates, unique business logic and other data are stored in applications, housed in web databases or saved across multiple spreadsheets. Payroll data testing uses automation to read multiple data sources and check rates for accuracy.
When Should Payroll Data be Tested?
Payroll data can be tested at many different points during a payroll process. Attendance data can be tested before it is saved in time cards, time card data can be tested before it is saved in payroll, and post payroll data can be tested after a payroll run.
Testing early in a payroll process (for example, time cards) is critical for preventing administrative error, mis-classification of rates, over-payments and under-payments. Early tests can compare time card data against external rate tables or business logic applications to ensure all rates are calculated accurately.
Testing later in a process (post-payroll, or testing against historic data) can be useful for applying retroactive pay, or monitoring variances in pay.
Why do Payroll Data Tests Matter?
Automated payroll data tests can ease administrative burden by reducing the need to manually “spot-check” and search for errors. In some cases, tests can also be used to automate important parts of the payroll process.
Without automated payroll data testing, it can be difficult or impossible to know if a current pay period will result in costly over-payment are under-payment issues. Too often, businesses discover these issues during an audit or lawsuit, When each issue becomes considerably more expensive to fix. By testing payroll data early and often, businesses can identify preventable errors and fix them before they turn into a problem.
How do Automated Payroll Tests Usually Work?
Typically, automated payroll tests will read one or two external data sources such as a government wage table, union rate table or custom rate schedule. The test will then compare these data sets against current period time cards, recent or historic post-payroll data, attendance data sets, or other relevant modules. Additionally, tests may also utilize business logic to highlight specific errors.
Are Automated Payroll Tests Included with Valet?
Simple payroll tests require just one or two data sources, and can be included in the basic edition of Valet. Advanced tests may require connections to additional data sources, which are still available through Valet.
Valet Data Platform
Ensure payroll accuracy and simplify HCM workflows with Valet – connect your HCM system to external data sources to verify rates, streamline employee data and more.
- Connect to external rate tables or applications
- Validate time card or payroll data early in your process before inaccuracies stay in your system
- Develop custom integrations or applications using Valet
- Experience fantastic ongoing support