📝 Overview
When you switch to DaySmart Payroll mid-year, your payroll history from the previous provider must be migrated into the system. This ensures accurate tax calculations, reporting, and year-end filings for all of your workers.
🔑 Why Payroll History Migration Is Required
Migration is required any time you switch payroll providers after payrolls have already been processed in the current calendar year. Here is why it matters:
Worker records: Payroll history contains each worker's earnings, taxes, and deductions. Without it, records will be incomplete and pay calculations may be inaccurate.
Continuity and consistency: Migrating prior payroll data ensures that taxes, benefits, and other payroll components are calculated correctly based on what has already been paid out this year.
Worker confidence: Your workers rely on accurate payroll records for financial planning. Migrating history ensures there are no surprises or discrepancies when they review their pay.
Compliance: Federal and state regulations require employers to maintain accurate payroll records. Missing data can result in incorrect tax filings, penalties, or audit complications.
Auditing and reporting: Complete payroll history is essential for generating accurate financial reports and supporting internal or external audits.
💡 You can keep your account with your previous payroll provider active while your data is being transferred. This allows you to continue downloading reports or run an additional payroll if needed.
📊 Payroll History Reports Required by Quarter
The data you need to provide depends on when during the calendar year you are making the switch. Use the table below to identify what to gather.
Joining in Q1 | Payroll-by-payroll breakdown per worker of wages, employee taxes, employer taxes, and benefits/deductions for all payrolls processed so far in Q1 |
Joining in Q2 | Quarterly totals for Q1 per worker, including wages, employee taxes, employer taxes, and benefits/deductions
Payroll-by-payroll breakdown per worker for all payrolls processed so far in Q2 |
Joining in Q3 | Quarterly totals for Q1 per worker, including wages, employee taxes, employer taxes, and benefits/deductions
Quarterly totals for Q2 per worker, including wages, employee taxes, employer taxes, and benefits/deductions
Payroll-by-payroll breakdown per worker for all payrolls processed so far in Q3 |
Joining in Q4 | Quarterly totals for Q1 per worker, including wages, employee taxes, employer taxes, and benefits/deductions
Quarterly totals for Q2 per worker, including wages, employee taxes, employer taxes, and benefits/deductions
Quarterly totals for Q3 per worker, including wages, employee taxes, employer taxes, and benefits/deductions
Payroll-by-payroll breakdown per worker for all payrolls processed so far in Q4 |
🛠️ Data Required by Worker Type
In addition to the quarterly reports above, provide the following data broken down by worker type.
Worker Type | Data Required |
W-2 Employee |
⚠️ Pay stubs do not always include employer taxes, so they may not be sufficient on their own. |
1099 Contractor |
|
📆 Special Guidance for Weekly Pay Groups
If you run payroll on a weekly schedule, follow these two steps to ensure a complete migration.
Submit initial data: Send all payroll data accumulated so far in the calendar year. This allows the migration process to begin.
Provide final payroll run data: After your last weekly payroll runs with your previous provider, share that final payroll journal as soon as possible.
🧠 Example: You run payroll every Monday for a Friday check date. Send all payroll data except the current week's payroll to get the migration started. Once the final weekly payroll runs, send that payroll journal no later than Friday so it can be included before your first payroll runs on DaySmart Payroll the following week.
🔍 Migration Guides by Previous Provider
Select the guide that matches your previous payroll system for step-by-step migration instructions.
Guide to Starting Your Payroll Migration from ADP Run | |
Guide to Starting Your Payroll Migration from Gusto | |
Guide to Starting Your Payroll Migration from Paychex | |
Guide to Starting Your Payroll Migration from QuickBooks Online | |
Guide to Starting Your Payroll Migration from Rippling | |
Guide to Starting Your Payroll Migration from Square Payroll | |
Guide to Starting Your Payroll Migration from Other Systems or CPA |
❓ Frequently Asked Questions (FAQs)
Find answers to common questions or additional details that may not be covered in the main instructions.
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Is payroll history migration always required?
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Migration is only required when you switch providers mid-year, after payrolls have already been processed in the current calendar year. If you are starting with DaySmart Payroll at the beginning of the year before any payrolls have run, no migration is needed.
Can I continue using my previous provider during the migration?
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Yes. You can keep your account with your previous provider active while the migration is in progress. This ensures you can still access historical reports or run a payroll if needed during the transition period.
What happens if I do not migrate my payroll history?
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Without prior payroll history, tax calculations, year-to-date totals, and year-end filings (such as W-2s and 1099s) may be incorrect. This can create compliance issues, penalties, and discrepancies in your workers' records.
Do pay stubs count as valid documentation for the migration?
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Not always. Pay stubs typically show employee taxes but do not always include employer taxes. Payroll reports from your previous provider that break down both employee and employer taxes are the preferred format. Download these as CSV or PDF files wherever possible.
What if I ran payroll through a CPA or a system not listed in the provider guides?
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There is a migration guide available for employers coming from other systems or a CPA. The same data requirements apply: you will need wage, tax, deduction, and contribution details broken down by worker and pay period. Refer to the guide for other systems or CPAs for full instructions.