The benefits of payroll integration

The time and labor savings of system integration allows the HR team to focus on their organization’s strategic people objectives.

When updates are requested by employees to their personal information, payroll integrations can send those updated demographics to the benefits system and any insurance carriers. (Image: Shutterstock)

At their core, data integrations serve to maintain an accurate system of record without manual intervention by HR administrators. This is undoubtedly the main benefit of an integration: the time and labor savings for the HR team allows them to focus on their organization’s strategic people objectives.

But one of the most critical data integrations – a payroll system integrating with a benefits system – is often left to the wayside. If you leverage a payroll and benefits system, but they are not integrated, consider the following ways this integration can help your organization succeed:

Adding new hires

Long gone are the days of adding new employees to multiple systems! Once you add the new hire to the Source of Record (SOR) system–which is typically the Payroll or HRIS system—the integration takes care of the rest, passing the new employee data to the benefits systems with ease and no manual effort.

Passing deduction & enrollment data

Employees enjoy the freedom of self-service options for new hire enrollments and life event changes. Payroll and Carrier systems stay up to date with automated integration processes to support timely delivery of medical cards and payroll deductions.

Updating demographic data

When updates are requested by employees to their personal information, payroll integrations send those updated demographics to the benefits system and any insurance carriers so all systems are accurate. If there is one thing administrators love, it is clean data!

Maintaining ACA data

You likely have a data set in your tech ecosystem for ACA reporting. Payroll integrations support the data integrity of this data by keeping eligibility, classifications, and demographics up to date and clean.

Holli Brummett supports Benefit Technology Resources as the Business Development Coordinator, focusing on new opportunities and business development for the BTR Extend Division. Holli brings to the team several years of Benefits Administration experience on multiple systems, working with broker teams as well as employers across many industries, including manufacturing, school districts, hospital systems, and more.