Checklist for switching payroll administration

On this page you'll find exactly what you need: the best time to switch, which data to provide, a practical step-by-step plan, and points of attention around DGAs, company cars and the WKR. This way you switch without hassle and payroll processing continues as normal. Want to know exactly how this process works? See how we arrange your payroll administration switch.

When to switch payroll administration?

As of 1 January: the gold standard

Switching on 1 January is easiest for most organisations. You close the payroll year completely with your current payroll processor, after which you start the new year with clean figures. That limits corrections, avoids fragmented annual wage statements and aligns seamlessly with tax obligations such as the payroll tax return, and pension and insurance integrations. Fixed components too—think leave balances, accruals and cafeteria plans—can then be neatly tracked from the new year. For you this means less risk of errors, fewer manual checks and a clear reconciliation of payroll journal entries with your financial administration. If you work with CAO changes or annual indexations, 1 January is also the logical moment to implement them correctly right away.

Switching mid-year

Switching mid-year is perfectly fine when waiting until 1 January is undesirable. Think of a new software environment, service issues with your current processor or a reorganisation. The condition is a complete and validated dataset including cumulatives and historical corrections. Expect extra attention to opening balances, the WKR and pension arrangements. Do you have questions about obligations or risks? Schedule an advice session on wage taxes and payroll.

Signs your current payroll administration no longer fits

• Regular errors or late payroll tax returns and payments

• Limited reports or no insight into accruals and the WKR

• No or poor CAO implementation and statutory updates

• No dedicated contact person or slow response times

• Difficult integrations with accounting, time tracking or the pension provider

Which data do you need to provide?

A complete and validated dataset speeds up your switch and prevents rework. Collect at least the following from your current payroll processor. Are you a local employer or entrepreneur? Check our services for local employers and entrepreneurs.

Employer and employee data

• Employer details: name and address details (NAW), payroll tax number, sector code, payroll tax period, bank account

• Employee details: name and address (NAW), BSN, date of birth, IBAN, contact, contract and job details

• Pay arrangements: salary scale, hours, allowances, reimbursements, agreements on discretionary budget

• Applicable CAO, leave schemes and any cafeteria plan

Historic payslips and payroll summaries

• Last 12 payslips per employee and cumulative payroll summaries for the current year

• Open items and accruals: holiday allowance, leave, time off in lieu (TOIL), year-end bonus

• Any ongoing deductions or wage garnishments

• Overviews of benefits in kind imputed amounts and corrections in the current year

Pension, insurances and reimbursements

• Participant and scheme details for pensions, including contribution percentages and tiers

• Insurances: sickness absence, WGA, supplemental sick pay, including policy numbers

• Mileage and expense reimbursements, homeworking and company scheme agreements

• Integration information and delivery formats from providers

WKR data and annual statements

• Current WKR budget (vrije ruimte) and designated reimbursements and provisions

• Specification of benefits in kind and final levies

• Annual wage statements for previous years and final payroll tax returns for reconciliation

• Overview of bonuses, gratuities and stock option plans in the current year

Step-by-step plan for switching as of 1 January

Use this compact plan to go live without surprises. Profinancials guides you at every step.

1. Close the old payroll year properly

In your old system, check the last payroll run, accruals, cumulatives and special components such as company car benefit-in-kind and cafeteria items. Ensure all changes up to and including December are processed and that the payroll tax return reconciles with your general ledger. Then export all required data in the agreed formats and safeguard your retention obligations.

2. Set up opening balances and starting values

For each employee, implement the correct opening balances: cumulatives, open accruals, leave, wage tax credit, pension parameters and any deductions. Record contract hours, scale, step and fixed allowances. Check test payslips for gross-to-net, pension and car benefit-in-kind. This prevents correction runs in January.

3. Set up the integrations with your accounting and providers

Configure the chart of accounts for payroll journal entries and activate the automatic export to your accounting package. Connect time tracking, pension, insurances and bank payments. Test whether journal entries and payment batches are created completely and correctly and whether references reconcile with your administration. Do you want your full business administration to run along as well? Choose our accountancy firm in Eindhoven for complete business administration.

4. Do a test run and plan the go-live

Run a test with representative employees. Check gross-to-net, accruals, WKR designations, pension contributions and journal entries. Resolve discrepancies and schedule the first live run with clear responsibilities and a checklist for final changes and approvals.

Points of attention: DGA, company car and WKR

Pay attention to a few specifics that can easily go wrong during a switch:

• DGA salary and customary wage—ensure correct basis, any deviation ruling, and dividend or current-account arrangements

• Company car—correct list price, CO2 class, private-use declaration and mileage log, and continuation of any existing benefit-in-kind

• WKR—current budget (vrije ruimte), designations and final levies, and clear process agreements for reimbursements in the new year

Need support on tax aspects around wage taxes and employer obligations? Engage our tax adviser in Eindhoven (wage taxes, employer obligations).

How Profinancials helps with your switch

With Profinancials you switch without worries. You get a dedicated adviser who checks your dataset, sets up opening balances and tests all integrations. We take care of payroll processing, payroll tax returns, the payment batch and payroll journal entries, and provide access to an online payroll portal for you and your employees. Thanks to our fixed all-in fee per payslip, you have cost control and no hassle with payroll software or legislation and regulations.

Together we follow a clear trajectory: collect and check data, run a test, plan the go-live and keep an extra close eye on things in the first months. Depending on the completeness of your data and the number of employees, your switch is often arranged within a few weeks, without interrupting salary payments.

FAQ about switching payroll administration

How difficult is it to switch payroll providers?

With complete data and a tight plan, it's very doable. Most complexity lies in opening balances, integrations and checks. We guide you fully.

What data is needed for payroll administration?

Employer and employee master data, pay and contract agreements, cumulatives, accruals, pension and insurance details, and WKR positions. See the checklist above.

Can you switch mid-year?

Yes, you can. Provide full cumulatives and clear opening balances. Expect slightly more checks than with a 1 January switch.

How long does the switch take?

That depends on the completeness of your data and the number of employees. In practice, count on a few weeks including test run and checks.

What does switching to Profinancials cost?

You pay a fixed all-in fee per payslip. There are no annual software costs. We make clear arrangements in advance about any migration activities.

Ready to switch effortlessly?

Schedule a free introduction. We discuss your situation, check your dataset and create a clear migration plan with a dedicated contact person and a transparent fee per payslip. Ready to start? Go to sign up now for the switch.