How to Integrate Your HRIS with Payroll to Make Pay More Accurate

Integrating your HRIS with payroll brings all employee data into one place.

It links records, hours worked, and pay details so payroll runs faster and with fewer mistakes.

This setup also cuts manual work, reduces errors, and keeps information accurate. It’s one of the most efficient ways to let your human personnel work on deeper tasks.

With more than twenty years of combined experience helping businesses integrate their HR systems, the EvolveUp team wrote a step-by-step process to connect your HRIS with your payroll system.

If you want an easier payroll process and a better experience for your team, this guide will help you get started.

Things to Remember…

Connecting HRIS and payroll cuts double data entry, reduces errors, and saves time.

Cleaning your data and mapping fields helps the two systems work together smoothly.

The best integration method depends on your business size, tech skills, and what your future plans are.

What Is an HRIS System?

HRIS stands for Human Resource Information System. It’s a software platform that stores and manages employee information.

Key Components of HRIS Systems

To understand HRIS better, consider these core components:

• Employee Database Management: Storing personal details, job roles, and history.
• Performance Tracking: Monitoring goals, evaluations, and development plans.
• Time and Attendance: Recording work hours, leaves, and absences.
• Benefits Administration: Managing health insurance, retirement plans, and perks.
• Compliance Tools: Keeping track of labor law adherence and reporting.
• Core Payroll Functions

Here’s what a payroll system typically manages:

• Wage Calculations: Computing gross pay, bonuses, and commissions.
• Tax Withholdings: Calculating federal, state, and local taxes.
• Benefits Deductions: Handling health insurance, retirement, and other deductions.
• Direct Deposits: Transferring net pay to employee bank accounts.
• Regulatory Compliance: Filing tax reports and adhering to labor laws.
• Payroll Reporting: Providing detailed pay summaries and audit trails.

Benefits of Integration at a Glance

Integration improves several areas:

• Eliminates Duplicate Data Entry: Prevents errors caused by manual input.
• Reduces Payroll Errors: Automatic updates ensure accurate pay and deductions.
• Speeds Up Payroll Processing: Data sync reduces delays and accelerates pay runs.
• Improves Compliance: Consistent records support tax filings and audits.
• Enhances Employee Experience: Accurate pay and benefits build trust.
• Streamlines Workflows: HR and payroll teams collaborate more efficiently.

What Are the Biggest Benefits of Integration?

There are many benefits to integrating HRIS with payroll. Here are just a few:

Automates data flow and reduces errors from manual entry

Speeds up payroll processing

Updates hours worked, deductions, and tax information in real time

Wait There’s More: More Reasons to Integrate HRIS and Payroll

Here are additional benefits organizations often experience:

• Data Accuracy: Synchronization reduces mismatches and improves data integrity.
• Reduced Administrative Costs: Less manual work means fewer payroll errors and corrections.
• Faster Onboarding and Offboarding: Employee data automatically updates for payroll changes.
• Improved Payroll Audit Trails: Clear records make audits easier and more transparent.
• Better Visibility: Managers gain insights into labor costs and workforce trends through strategic planning.
• Employee Self-Service: Access to payroll info empowers employees and cuts HR inquiries.

Some Common Challenges You Might Face Without Integration

Without integration, several challenges surface that impact payroll and HR operations.

Challenges You May Face

Communication between technology systems is just as important as communication between humans. Here are some common issues when HRIS and payroll don’t talk:

• Data Entry Errors: Manual input leads to typos and mismatches.
• Payroll Delays: Inconsistent data causes missed deadlines.
• Compliance Risks: Incomplete records increase audit failures and penalties.
• Increased Costs: Fixing errors takes time and money.
• Low Employee Morale: Payroll mistakes damage trust and engagement.
• Inefficient Workflows: HR and payroll teams spend time resolving discrepancies.

Avoiding these challenges is a strong motivation for integration.

There Are a Few Ways to Integrate HRIS with Payroll: Here are Three

Businesses can choose from several integration methods depending on resources and needs.

These options suit various budgets, technical skills, and business complexities.

Integration Options Overview

Before choosing, consider this:

• Bundled Solutions: One platform handles both HRIS and payroll.
• Pre-Built Integrations: Connectors link separate HRIS and payroll systems.
• Custom Integrations: Tailored builds that meet unique business needs.

Understanding these options helps choose the best fit.

Bundled HRIS and Payroll Solutions

Bundled solutions combine HRIS and payroll into one platform. This means one system handles employee data and payroll processing together. When considering how to select the right HR software, understanding integrated hr and payroll software is essential.

Advantages of an all-in-one system include several key benefits:

1. Easier setup and implementation
2. Unified training for all HR and payroll functions
3. A consistent user experience across the entire platform
4. Managing only one vendor and one system

Why Choose Bundled Solutions?

Here’s why bundled systems work well for many organizations:

• Simplified Implementation: One vendor, one system to deploy.
• Unified User Experience: Consistent interface for HR and payroll teams.
• Consolidated Support: Single point of contact for troubleshooting.
• Lower Learning Curve: Training focuses on one system.
• Cost Predictability: Fewer vendors reduce contract complexity.

Pre-Built Integrations

Pre-built integrations let you connect your HRIS and payroll systems using ready-made tools from vendors. These connectors sync key data, including employee details, job and pay info, and time records. Understanding HRIS integration capabilities helps determine if this approach fits your needs.

Some important points to note include:

1. Limited customization options
2. Dependence on vendor compatibility
3. Possible issues when one system updates and the integration needs changes
4. These factors help you understand whether a pre-built option is the right fit for your business.

Advantages of Pre-Built Integrations

Reasons to consider pre-built connectors include:

• Faster Deployment: Ready-made tools speed implementation.
• Vendor Support: Backed by both HRIS and payroll providers.
• Reduced Risk: Tested solutions minimize errors.
• Flexibility: Retain preferred HRIS or payroll systems.
• Lower Development Costs: No need for custom coding.

Drawbacks include limited ability to tailor workflows and occasional compatibility issues after updates.

Custom Integration

Custom integration means creating a unique connection between your HRIS and payroll systems. Some key advantages include:

Full control over how data moves between systems

Ability to match specific business rules

Custom builds also offer more flexibility because they can adjust as your organization changes.

When Custom Integrations Make Sense

Consider custom builds if you need:

• Unique Business Rules: Complex payroll or HR workflows.
• Full Control: Tailored data flow and automation.
• Scalability: Systems designed for future growth.
• Integration With Multiple Systems: Beyond HRIS and payroll.
• Compliance Complexity: Industry-specific requirements.

Though resource-intensive, custom integration can deliver the most precise fit.

The Integration Process: How to Do It Step-by-Step

Successful integration requires careful planning and teamwork. Here’s how we approach it.

Step 1: Assess Your Integration Needs

Start by reviewing current HR and payroll systems. Identify pain points like duplicate data entry or delays. When evaluating whether HRIS implementation will solve your challenges, ask yourself: does HRIS include payroll capabilities that meet your operational requirements?

What to Consider During Assessment

Focus on these points:

• Current System Limitations: What causes delays or errors?
• Data Fields Needed: Personal info, pay rates, tax data, etc.
• Compliance Requirements: Tax filing, reporting needs.
• Stakeholder Input: HR, payroll, IT, and management perspectives.
• Budget and Resources: Available for integration work.

Clear assessment shapes a successful integration plan.

Step 2: Evaluate Integration Options and Vendors

Key things to look at include:

1. Vendor experience and support
2. System compatibility

Ask for demos, and check references from organizations similar to yours. This helps you choose the option that fits your needs best. Building an HR technology roadmap provides clarity on which payroll HRIS software aligns with your long-term goals.

What are the Evaluation Criteria?

When selecting solutions or vendors, look at:

• Integration Features: What’s included out of the box?
• Vendor Reputation: Experience with similar clients.
• Support and Maintenance: Availability and responsiveness.
• Cost Transparency: Upfront and ongoing fees.
• Scalability: Ability to grow with your business.
• Security Standards: Data protection measures.

It helps to pick the right partner.

Step 3: Plan Your Data Migration

Planning this important step helps decrease the number of mistakes that might occur.

Data Mapping and Preparation

Data mapping is important to make sure information moves between systems. Before you begin, audit your current data to find and fix any errors. Key steps include:

1. Creating a clear migration timeline
2. Setting backup and rollback plans
3. These steps help keep the integration safe and accurate.

Preparing Your Data Migration

This phase includes:

• Data Cleansing: Remove duplicates and correct errors.
• Field Mapping: Match HRIS fields to payroll fields precisely.
• Test Data Sets: Use sample data to validate mapping.
• Backup Plans: Safeguard existing data before changes.
• Timeline: Set realistic deadlines for migration steps.

It can prevent costly mistakes.

Step 4: Test the Integration Thoroughly

Testing catches errors before full deployment. Validate data accuracy and compliance features. Run parallel tests with old and new systems for several payroll cycles.

Types of Testing to Conduct

Ensure your integration passes these tests:

• Data Accuracy Checks: Verify records match across systems.
• Workflow Testing: Confirm processes execute smoothly.
• Compliance Verification: Tax calculations and reporting are correct.
• Performance Testing: System handles expected data volumes.
• User Acceptance Testing: HR and payroll teams approve functionality.

Step 5: Train Your Team

Prepare HR, payroll staff, and employees for new systems. Provide detailed training on workflows and self-service portals. Create documentation for ongoing support. Leveraging AI implementation in HR alongside HRIS payroll systems training ensures your team adapts smoothly.

Training Best Practices

Effective training involves:

• Role-Based Sessions: Tailored for HR, payroll, and employees.
• Hands-On Exercises: Practice using the system.
• Documentation: Quick guides and FAQs.
• Change Management: Address concerns proactively.
• Support Channels: Help desks or internal experts available.

Step 6: Go Live and Monitor

Schedule the go-live date with payroll cycles in mind. Notify all stakeholders of changes. Monitor the system closely during initial payroll runs and resolve issues promptly. Gather feedback for continuous improvements. Integrating workforce scheduling with your HRIS and payroll ensures accurate time tracking from day one.

Post-Go-Live Activities

After launch, focus on:

• Close Monitoring: Watch for errors or delays.
• Issue Resolution: Fix problems quickly.
• User Feedback: Collect suggestions and concerns.
• System Updates: Apply patches or improvements.
• Performance Metrics: Track key indicators regularly through workforce management metrics.

Which Integration Approach is Right For Your Business?

No single approach fits all. Choose based on your business size, budget, and technical resources.

Factors to Consider

When planning an integration, keep these points in mind:

1. Employee count
2. Business size and complexity
3. Budget for setup and long-term costs
4. Training needs
5. Ongoing maintenance

Making the Choice

Consider these factors carefully:

• Company Size: Larger organizations may need custom solutions.
• Budget Constraints: Smaller businesses often prefer bundled or pre-built.
• Technical Expertise: In-house IT or external consultants.
• Growth Plans: Will the solution scale with your business?
• Compliance Needs: Complex rules may require tailored integration.

When to Choose Bundled Solutions

Bundled HRIS and payroll platforms are ideal for small to medium businesses. They offer clear advantages such as:

1. Simplified vendor management
2. Easier setup and onboarding
3. Unified user experience

When to Choose Pre-Built Integrations

They offer:

1. A good balance of ease of use and flexibility
2. Faster setup compared to custom builds
3. Vendor-supported updates

When to Choose Custom Integration

Custom integrations are best suited for:

• Large enterprises
• Businesses with highly specific or complex workflows

But keep in mind:

• They require more time, resources, and technical maintenance

The Best Practices for Successful Integration with Payroll

There is no point in integrating HRIS into payroll if it is not going to be successful; there are several practices that have the highest percentage for success. Here are a few:

Prioritize Data Security and Compliance

Protect employee data by using strong security tools such as:

1. Encryption
2. Access controls
3. Audit trails

Maintain Clean Data

Good data is key to a smooth HR and payroll system. Set clear data rules, use checks that catch errors early, and run regular audits to fix any problems. Strong HRIS reporting capabilities help you monitor data quality continuously.

Plan for Scalability

Choose integration solutions that can grow with your business. Your systems should handle more employees, new features, and larger workloads over time. Understanding workforce forecasting and workforce segmentation ensures your HRIS software features support future expansion.

Common Integration Challenges and Solutions

Prepare for the usual obstacles and how to address them.

Data Migration Issues

• Data gaps or inconsistencies can disrupt the integration process.
• Clean and verify all data before migration.
• Prepare backup plans to avoid delays or data loss.

Resistance to Change

Some employees may push back against adopting new systems. To reduce resistance:

• Communicate the benefits clearly.
• Provide strong training and hands-on support.
• Allow time for users to adjust.

Technical Compatibility Problems

• System mismatches may block or delay integration.
• Work closely with vendors to troubleshoot compatibility issues.
• If needed, explore alternative tools or integration options.

Measuring Integration Success

So, how do you measure if your integration was successful?

Key Performance Indicators

Monitor key metrics to ensure the integration is working effectively. Important KPIs include:

• Payroll processing speed
• Error rates
• Compliance accuracy

Continuous Improvement

Check how well the integration is working and use feedback to make improvements. Key actions include:

• Staying up to date with system updates
• These steps help keep your HRIS and payroll systems running smoothly over time.

Transform Your HR and Payroll Management

Bringing HRIS and payroll together transforms workforce operations. It streamlines workflows, reduces errors, and improves compliance. This process takes planning and ongoing management. As AI transforms workforce planning and AI is shaping HR roles, integrating HRIS payroll systems positions your organization for long-term success.

Ready to improve payroll accuracy and efficiency? Schedule an appointment at EvolveUp and take the first step toward better HR and payroll management.

References

1. Society for Human Resource Management. “HR Technology: HRIS and Payroll System Integration.” SHRM, 2024, www.shrm.org/topics-tools/tools/hr-answers/what-hris-system.
2. U.S. Department of Labor. “Compliance Assistance – Fair Labor Standards Act (FLSA).” DOL Wage and Hour Division, 2024, www.dol.gov/agencies/whd/compliance-assistance.