Use this checklist to ensure your Payroll system is configured correctly and ready for accurate, compliant payroll processing. Completing these steps will help you confidently run your first payroll and establish consistent processes moving forward.

Confirm Administrator Access

• Identify primary Payroll administrators
• Confirm administrator permissions are assigned
• Add backup payroll or HR administrators
• Review user roles and access levels

Limit payroll admin access to users responsible for processing and auditing payroll.

Review Company Payroll Setup

• Verify company payroll profile details
• Confirm payroll frequency (weekly, biweekly, semi-monthly, etc.)
• Review pay period calendar
• Confirm payroll processing deadlines

Lock in your payroll calendar early to prevent timing issues later.

Validate Employee Payroll Data

• Confirm all employees are set up in payroll
• Verify pay rates (hourly/salary)
• Review tax withholding details (federal, state, local)
• Confirm direct deposit information
• Validate employee classifications (W-2, etc.)

Most payroll issues stem from incorrect employee setup—double-check this step.

Configure Earnings & Deductions

• Review earning codes (regular, overtime, bonus, etc.)
• Confirm deduction codes (benefits, garnishments, etc.)
• Verify tax settings and compliance rules
• Confirm deduction limits, caps, and effective dates

Keep naming conventions consistent for easier reporting and troubleshooting.

Confirm Time Integration (If Applicable)

• Verify time data is syncing from your time system (e.g., ExakTime)
• Confirm overtime calculations are accurate
• Ensure supervisor time approvals are complete
• Validate imported time before processing payroll

Never process payroll without confirming approved time is accurate.

Review Benefits & Payroll Deductions

• Confirm benefit deductions are correctly mapped
• Verify employer vs. employee contributions
• Review deduction schedules
• Validate benefit-related payroll impacts

Misconfigured benefits are a common source of payroll discrepancies.

Establish Payroll Review Process

• Define internal payroll review/approval steps
• Assign responsibility for final payroll validation
• Create a checklist for payroll verification
• Define correction and adjustment procedures

A second set of eyes before submission can prevent costly errors.

Run a Test Payroll

• Process a sample or test payroll run
•   Verify gross-to-net calculations
•   Confirm taxes and deductions calculate correctly
•   Review payroll summary and audit reports

Testing builds confidence before your first live payroll.

Run Your First Payroll

• Import or enter employee time
• Review all employee pay and deductions
• Validate totals using payroll reports
• Submit payroll for processing

Review & Reconcile Payroll

• Review payroll summary and detail reports
• Confirm tax calculations and liabilities
• Verify deductions and net pay amounts
• Archive payroll reports and records

Continue Learning

• Explore additional Payroll training in Arcoro Learning
• Attend payroll-focused webinars or workshops
• Contact support or training for assistance as needed

Congratulations!

Your Payroll system is set up and ready to support accurate, reliable payroll processing.