Deep dive: Collect & migrate data
Streamline data collection and migration processes to enhance payroll product efficiency and accuracy.
Collecting and migrating data is a data intensive step that requires understanding the needed data and when it’s used in order to to build an efficient payroll product and support operational processes.
Check provides a flexible set of tools to streamline this process and deliver a seamless customer experience, but it requires Partners to work collaboratively with customers to ensure the process works smoothly.
Missing data and data entry errors are the most common reasons the Company Set-up process does not work smoothly. Everyone in a payroll business can play a role in helping identify and prevent common errors from occurring.
Check products available for data gathering
- Onboard: An easily embeddable, Check-hosted UI for collecting required payroll information from employers or employees
- Components: Modular units of a payroll product which allow Partners to build customized experiences. Includes decomposed elements of Onboard as well as other offerings.
- Console: An administrative and debugging tool for Partners to help manage and provide visibility into their payroll business
- Plaid (via Onboard): Tool which makes it easy, safe, and reliable for people and companies to connect their financial data to other apps and services
Company information data
Company information is needed and can be collected from forms SS-4, CP-575, 147-C, and prior 94X tax returns.
Business Identification Data | Payroll Characteristics | Go-live Info |
• Legal name and address
• Trade name or d/b/a*
• Signatory legal name, email, and title (Used on Form 8655)
• EIN / State IDs (Applied for status)
• Business Type (e.g., c-corp)
• Industry Type
• Anticipated number of Forms W-2 (employees) & 1099 (contractors) | • Pay frequency / pay periods / pay dates
• Types of earnings / deduction codes
• Salaried / hourly employees
• Deposit frequency
• State unemployment insurance rate(s)
• Workplace(s) | • 1st pay period (e.g., 8/7 - 8/20)
• 1st check date (e.g., 8/26)
• 1st processing date / time (e.g., 8/22 @ 3pm ET) |
Master file & payroll data
Both the demographics and master file components are required to accurately calculate tax withholdings and other deductions. Historical data is also necessary to validate previously calculated taxes and other withholdings. This information is collected from HR system, previous 3rd-Party, and in-house payroll. View loading historical wages for more information on how to upload this data.
Worker data needed
Demographics | Master File Components |
• Names & resident address
• Social security numbers (SSN - employees)
• Tax identification number (TIN - contractors)
• Workplace(s)
• Date of birth
• Employment start date | • Hourly / Salary & rates
• Benefits/Deductions - by category & amounts
• Child support orders (if applicable)
• Tax withholding certificates
◦ Form W-4 information
◦ State withholding certificates (if applicable)
◦ Local withholding certificates (if applicable) |
Data needed for mid-year starts
If a company starts using a Partner’s payroll product at the beginning of the calendar year (e.g., January 1), or has never processed payroll, then no year to date payroll information is required. However, if a company starts running payroll at any other time during the year, additional year payroll data is required.
YTD employer set-up data | YTD employee set-up data | Per pay period data |
• Federal, state, & local ER taxes
• Prior payroll provider (if applicable)
• Employer benefit contributions
• Total tax liabilities - federal, state(s), local(s)
• Quarterly tax returns - 941, state(s), local(s)
• Tax deposits | • Gross pay by type (bonus, regular, commission, etc.)
• Federal, state, & local EE taxes
• Employee benefit contributions
• Employer benefit contributions
• Reimbursements (optional)
• Garnishments/Post-tax deductions | - Total tax liabilities – federal, state(s), local(s)
- Any and all tax payments
- Any and all outstanding tax liabilities |
Authorization data
Authorization data is divided up in two separate segments: the company must authorize Check to act on their behalf for tax filings and money movement. The employees are required to authorize Check to process their payments and to file tax returns on their behalf. It is collected from HR system, previous 3rd-Party, and in-house payroll.
Company Data | Employee Data |
• Form 8655
◦ State authorization forms (as needed)
• Benefit plan deductions
• Tax profiles
• Banking information | • Direct deposit banking
• Form W-4
• State / Local tax forms |
Preparatory steps
During verify the business, the company objects were created. In order to complete company and employee setup, additional information is required which can be captured either in the Partner Product or by utilizing Console.
- Company creation: Finalize business identification information (e.g., start date) as part of the company creation process kicked-off during Verify the Business step
- Employee creation: Create employee objects and enter employee demographic information
Migrate employer data
Collecting and Migrating employer data can be completed in five steps once company creation is complete. Employers complete the steps through Onboard. A company’s legal signatory must complete the process.
- Company details: Validate (from Onboard) or enter (in Console) information and set up benefit plans and deductions in Console
- Payment method: Enter payment processing information from employer’s banking credentials
- Tax configuration: Enter employer’s federal, state, and local tax identification numbers and rates, allowing Check to calculate, remit, and file taxes accurately.
- Filing authorization: Enter employer’s authorization forms for remittance of tax forms (federal, state, local) to ensure Check can file on behalf of employers (Form 8655, any applicable state and local forms)
- Accounting setup: Employers can link to QuickBooks Online (Optional)
Once an employer completes the process in Onboard, Partners validate and confirm the appropriate data has been collected and migrated.
- Company setup: Ensure company’s taxes have been set up correctly for each jurisdiction and add benefits (if applicable).
- Employee tax setup: Confirm all employees of this company have been configured correctly and add any benefits or post-tax deductions.
- Add historical payrolls: If a mid-year start, and company has had previous payroll, add historical payrolls and Custom Earning Codes (if required).
- Audit historical payrolls: Calculate company’s payroll based on previously loaded existing and historical data.
- Confirm payroll setup: Confirm payroll is correct upon successful completion of Step 4.
Migrate employee data
Employees are required to complete a simple process to set themselves up to receive payrolls. This includes three steps.
- Payment method: Enter payment processing information from employees’ banking credentials
- Personal info: Enter social security number
- Tax withholding: Enter federal, state, and local tax withholding information (Form w-4, state/local withholding certificates)
Common issues
There are a set of common issues which cause operational challenges and payroll launch delays. Providing visibility can help inform Partners’ development of operational processes.
Tax Document | YTD Taxable Wages | FUTA & FICA Taxes | |
Issue | No W-4 information entered for EEs | YTD information is not verified prior to entry (e.g., wage base limits) | YTD ER tax liabilities are not validated |
Example | Tax documents not brought over from prior payroll provider or not entered by EE in onboarding | Tracy’s taxable wages and tax withholding were entered higher than the current wage base | Effective FUTA rate = 0.6%; Tracy’s taxable wages = $7,000 but liability was put in at $36 ($7,000 x 0.6% = $42) |
Outcome | Tax deductions are withheld at a much higher rate than EE may desire | Taxable wages and withholdings will be overstated and will need to be corrected | When Check validates this by re-calculating the taxes, the $6 difference will need to be researched and re-validated costing time and resources |
Balancing some taxes is also a common challenge. Here are some tips and notes to help mitigate these issues.
FICA Taxes | FIT Taxes | FUTA Taxes |
• Social security has a wage base; Medicare does not
• Rounding differences of a few cents is okay; being off a dollar or more is a problem
• Identify any pre-tax deductions (e.g., health insurance)
• Medicare has no wage base so all taxable wages need to be taken into consideration | • During validation, Check uses the Form W-4 details
• If not setup the same in both systems, the calculations will not match
• Be sure to enter FIT exactly as deducted from the prior payroll
• Identify any pre-tax deductions (e.g., 401(k)) | • Federal Unemployment Taxes are calculated @ 0.6%
• Generally, unless the liability for prior quarters was over $500, FUTA tax deposits may not have been done
• Differences can be identified based on what is in the audit report
• Identify any pre-tax deductions (e.g., health insurance) |
Last updated on March 31, 2022