Audit & Review

Parallel Runs

A parallel run is a testing phase where a new or modified payroll system runs simultaneously with the existing system for a specific period. During this parallel run, both systems process the same set of payroll data at the same time. The purpose of this exercise is to compare the results produced by the new system against those generated by the existing system to ensure accuracy, identify discrepancies, and address any issues before fully transitioning to the new system.

In a nutshell, a parallel run is a critical step in the implementation or significant modification of a payroll system ensuring a smooth transition and minimizing disruptions to payroll operations.

Key Benefits of Parallel Runs

Data Consistency: The same payroll data is entered into both the old and new systems to ensure consistency in calculations and outputs.

Accuracy Verification: The results produced by the new system are compared with those of the existing system to identify any discrepancies or errors.

Compliance Testing: The parallel run provides an opportunity to verify that the new payroll system complies with local employment laws, tax regulations, and other statutory requirements.

Process Validation: The parallel run allows organizations to validate the end-to-end payroll processing workflow.

Risk Mitigation: By running both systems concurrently for a defined period, organizations can mitigate the risks associated with transitioning to a new payroll system.

Training Opportunities: The parallel run serves as a training opportunity for payroll staff to familiarize themselves with the new system and its features in a real-world setting.