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Payroll Interface in Multi Geography Environment: Key Focus points

Guest post by
Neha Barnawal, Senior Associate Consultant, Infosys


In organizations operating out of multiple geographies; country/region specific Payroll Vendors are increasingly preferred over the centralized HR Operations systems. While the importance and complexity of Payroll Processing is unquestionable in any HR system; different Payroll systems for different countries make it all the more complicated.

By definition, Payroll Interface is utilized to exchange data between the HR system of the organization and the third party Payroll systems. It's generally the responsibility of the local payroll departments to prepare data in the format suitable for the payroll system, tool or vendor specific to the country.  At the same time, Payroll interface has to cater to the comprehensiveness of the information.

During the implementation of any HRMS enterprise package, Payroll Interface also has to be implemented. Some of the key sets of data to be focused on while designing the specifications of the Interface are Employee Personal and Job information, Payment and deduction data and Format of the data and the files.

Apart from general employee information like Legal Name, Cost center details, Compensation data and Primary Address, the Interface should contain country specific Local Name, Local Addresses, Bank, Tax, Visa, Dependent and National ID information also. This enhances the fitness for use of the Interface towards the departments where local details of the employees are required for payroll processing (countries like; Japan, China have Local employee details in its specific language and format).

The other important sets of data to be included are Additional Payments and Deductions. Any type of Additional earnings can be included using Earning Codes.  Award Data, Compensation Plans, Benefit Plans and Pension Plans data should be catering to all the country specific regulatory requirements.

One very essential aspect of the Interface is its format. The data and file formats should be compatible with the downstream payroll systems. Date format, precision for the numeric fields, default/Null values for the numeric and character fields are central focus points of data format.

Header, file type, file name and field delimiter are crucial elements of file formatting. File encoding also should be carefully chosen while dealing with non-English characters.

Last but not the least extremely essential point to be focused on is training of the Payroll team. The people handling the Payroll systems should be trained to run the Interface correctly. The initial set ups and data should be proper. The teams should be able to identify and isolate data issues and program issues. 


Thus, a careful specification and design for the Payroll Interface enhances its fitment towards the dissimilar requirements of the various payroll systems and proper training for the Payroll teams can make the implementation and usage of the Interface a lot easier.


Good one Neha

Well researched, concise document. Good work. Thanks for sharing the link.

Thanks Abhishek and Partha. Design of Interfaces are extremely important when best of the breed solutions are used for separate processes and distinct geographical regions. We have blogs in line on the integration of the HRMS modules of the discrete solutions.

Request you for information on the design of a payroll-general ledger interface

To efficiently manage the entire payroll work the requirement of payroll processing services is needed.

Payroll service is one of the key operational aspects of a business. It involves the administration of the financial records of employees' salaries, wages, bonuses, net pay, and deductions.

Payroll is an unavoidable function of the company. It has to be there otherwise chaos will take place among employer and employees. It won't be possible to calculate the salary, deductions, and bonuses. So, payroll system is very important.

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