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Locating, Preparing, Importing, and Verifying Prior Compensation Documentation

This SOP provides step-by-step guidance for locating, preparing, importing, and validating Prior Compensation (Prior Comp) data into isolved. Following this procedure ensures accuracy, compliance, and consistency in client data conversion.

 

Scope

This procedure applies to all Implementation Specialists responsible for setting up new clients or converting existing clients from a previous payroll provider into isolved.

Responsibilities

  • Implementation Specialist: Responsible for gathering client data, importing prior balances, and ensuring all figures balance accurately.

  • Tax Department: Performs the final audit and clears the implementation for live payroll processing.

Procedure

1. Locate Prior Compensation Documentation

  1. Navigate to:
    SharePoint → Current Client Folder → [Client Name] → Prior Comp

  2. Locate the client’s data source and identify which payroll provider was previously used.

  3. Review the guide:
    “Prior Providers Payroll Documents” (available in SharePoint).
    This resource lists payroll service providers and the names of reports required for prior YTD data balancing.
    Understanding each provider’s report format ensures proper retrieval of prior compensation documentation.

2. Prepare the File for Import

Step 1: Retrieve the Correct Data Conversion Master

  1. Navigate to:
    University Library → Tax and Import Resources

  2. Download the most recent version of the Data Conversion Master for Imports.

    ⚠️ Always use the latest version — import structures are updated as system configurations change.

Step 2: Open and Format the File

  1. Open the Data Conversion Master workbook and locate the tab labeled “Prior Balances.”

  2. Using the client’s data source, enter or copy data into the Prior Balances tab.

  3. Follow these formatting rules:

    • Remove spaces in all header names.

    • Include the Employee Number — this field is required for all imports.

    • Other import types (Direct Deposit, Prior Balances, etc.) may use Employee Number, SSN, or Time Clock ID.

    • For clients with multiple legal entities or pay groups, add columns for Legal and Pay Group.

    • Review Data Imports – Tips and Tricks (in University Library) for additional Excel formatting best practices.

Note: Always load figures in chronological order by check date to ensure accurate YTD totals.

3. Import the Prior Compensation File

Step 1: Access the Import Tool

  1. Navigate to:
    Conversion Management → Data Imports

  2. Select Import Type: Prior Balances.

Step 2: Complete Import Setup

  1. Fill in all required fields.

  2. Under Employee Import Mode, select:

    • New Hire Only — for first-time employee imports.

    • Use Update or Add modes only when correcting existing records.

Step 3: Validate the File

  1. Click Next on the action bar.

  2. Review the Import Validation Summary screen:

    • Click each button to view errors and warnings.

a. Critical Error Records

  • These errors prevent import completion.

  • Review the file, correct the issue (e.g., missing required field), and reimport.

b. Warning Records

  • May not stop the import but require review.

  • Examples:

    • Acceptable: Job or organization not found (system will add automatically).

    • Acceptable: Geocode assignment notification.

    • Unacceptable: Column not recognized or ignored (update column header and reimport).

c. File Format Errors

  • Occur when required columns are missing or misnamed.

  • Example: “Employee Number” column present but incorrectly labeled.

  • Update the header, correct the format, and reimport.

Step 4: Finalize Import

  1. Once all issues are resolved, click Next again to complete the import.

  2. Confirm the Import Summary message appears to verify successful completion.

4. Run a Preview Payroll

Step 1: Review Imported Data

  • Navigate to: Payroll Processing → Payroll Entry → Individual Time Entry

    • Confirm imported figures display correctly for each employee.

Step 2: Generate Reports for Verification

  • Navigate to: Payroll Processing → Preview Payroll

  • Confirm:

    • Payroll Run Type: Data Conversion

    • Check Dates: Match imported data

Step 3: Review Reports

  • Conversion Register Export by Quarter/Year – for balancing to prior quarter tax returns.

  • Conversion Register Export by Pay Date – for balancing current quarter payroll registers.

  • Conversion Register Export – for detailed check-level review.

5. Review and Verify Totals

Step 1: Match Totals

  • Verify that all imported totals match the client’s prior payroll reports and tax returns across all jurisdictions:

    • Federal, State, Local, School District, and FUTA.

Best Practice: Always balance to tax returns when available. If unavailable, use a report that shows taxable wages.

Step 2: Identify and Resolve Variances

If discrepancies are found:

  1. Review Exceptions – Troubleshooting Causes (in SharePoint).

  2. Schedule a meeting with client payroll/tax contacts to review findings.

Ask the following:

  • Are taxable earnings or deductions correctly classified?

  • Are reimbursements properly marked as taxable/non-taxable?

  • Was Third-Party Sick Pay included or omitted?

  • Have any amended returns been filed that weren’t shared?

Step 3: Correct and Reimport if Necessary

  1. Undo the data import if corrections are required.

  2. Update the spreadsheet or fix taxability rules.

  3. Reimport corrected data.

  4. Re-run Preview Payroll reports to verify accuracy.

6. Process the Payroll

  1. Once cleared, navigate to:
    Payroll Processing → Process Payroll

  2. Click Process Payroll to finalize the data import and commit figures to isolved.

  3. Reports will automatically be stored in Report Archive.

7. Tax Department Final Audit

  1. The Tax Department automatically receives an alert/email for Final Tax Audit.

  2. Tax will review:

    • All reports

    • Totals for each jurisdiction

    • Consistency with prior reports and tax filings

  3. Any questions or corrections will be communicated in HubSpot to @Implementor.

  4. Once verified, Tax updates the HubSpot status to:

    “Tax Audit Complete.”

8. Quality Assurance Checklist

☐ Client Prior Comp folder located and validated (SharePoint)
☐ Most current Data Conversion Master used
☐ File formatted and validated (no critical errors or warnings)
☐ Import Summary verified
☐ Reports reviewed and balanced
☐ Variances documented and resolved
☐ Auditor task completed
☐ Tax Department cleared file to run
☐ Payroll processed and archived

References

  • University Library → Tax and Import Resources

  • SharePoint → Prior Providers Payroll Documents

  • SharePoint → Exceptions – Troubleshooting Causes

  • isolved → Data Imports – Tips and Tricks