This article provides an overview of Deel’s Parallel Payroll process as part of the Global Payroll Implementation set up.
In this article:
What is Parallel Payroll?
Parallel Payroll is a mock or mirror cycle that is performed by the Deel team for entities that have already been running payroll, with the purpose of ensuring the accuracy and reliability of payroll calculations after the data migration. It’s called 'parallel' as it’s done simultaneously with your current payroll provider to compare the live results with the mock ones and iron out any discrepancies.
Prerequisites for Parallel Payroll
To proceed with the Parallel Payroll the previous implementation phases would have to be completed, from the entity compliance and payroll documentation, to having the employees fully onboarded in our platform. For more information on the Employee Onboarding process take a look at Frequently Asked Questions About Onboarding Global Payroll Employees.
In order for our team to perform the payroll comparison, you will need to provide the following set of onboarding documents from your current payroll system:
- Gross to net (G2N) report
To upload these documents, you can do so directly from your Organization Settings under the corresponding document item. For more information, review How To Complete Entity Onboarding And Activate Global Payroll.
Employee Onboarding and Headcount Changes
It’s important to note that the employees who did not complete their onboarding and missed their onboarding timeline by the Parallel Payroll cut off will be excluded from the cycle as they normally would in a live run. For more information on employees’ onboarding flow, review When Can My Employees Start?
Any headcount changes (starters or leavers) from the initial onboarding set up to the time of the Parallel Payroll must be updated to properly reflect the accurate number of employees.
Parallel Payroll Process
Once everything is set up, the implementation team will confirm we are ready to begin the Parallel Payroll process. The team will agree with you on the cycle that will be used to perform the Parallel Payroll, as well as milestone deadlines to create the Parallel Cycle Payroll Calendar. The newly created event will have the 'Parallel Run' label to differentiate from live cycles.
The Parallel Payroll calendar will only be applicable for this particular run, for the future regular (live) cycles the already agreed Payroll Calendar will be applicable. The team will agree with you on:
- Parallel Payroll Report Cut off: due date for you to submit the parallel payroll report.
- Payroll processing: 5 business days from the cut off. The Deel team will publish the payroll package and run results.
- Review & Approval: allotted time for you and your team to review the payroll deliverables and approve the payroll package.
In cases where the selected Employee Payment method is through Deel, meaning that Deel will provide Treasury Services and manage the execution of net salary payments to the employees and/or liability payments to the authorities (where allowed), there will be an additional step: Penny Testing. Deel will issue a penny (or equivalent in local currency) payment directly to the employees’ declared bank account to confirm successful receipt prior to going live.
Platform Enablement Call
Before the actual Parallel Payroll submission, the implementation team will schedule a call with you and your team to provide a walkthrough of the platform and how payroll processing is managed in our system. In this Platform Enablement call, you will see an in depth product demonstration and review of your use cases to ensure you can successfully self-manage your team’s payroll.
Submit Payroll Instructions
At the time of submission, all payroll instructions that are needed to complete the payroll for the chosen parallel will be required. This should include instructions for adjustments such as: bonuses, commissions, allowances, overtime additions, and should also include leaves and absences, such as PTO and sick reports.