Migrating Payroll Mid-Year Without Losing YTD Data
Moving payroll mid-year? Carry over year-to-date gross pay, APIT deducted, EPF/ETF numbers and leave balances as opening figures. The full checklist.
On this page
- Choosing the cutover month
- The opening-balance data set
- Cumulative APIT: why it must come across
- EPF and ETF member numbers and continuity
- Leave and loan balances
- Parallel running for one month
- Post-cutover checks before the first live payslip
- Frequently asked questions
- Do I need to notify EPF or ETF that I changed payroll software?
- What if I do not have clean year-to-date figures from the old system?
- Can I migrate partway through a month?
- How long should the parallel run last?
- What is the single biggest risk in a mid-year migration?
Carry over five opening figures: year-to-date gross pay, APIT deducted so far, EPF and ETF member numbers, leave balances and loan balances. Get these right and the switch is safe at any point in the year.
Choosing the cutover month
There is no legal rule forcing a particular month. Two points make the work lighter: the tax year starting 1 April, and your own financial year start, if different. Either gives you a natural point where fewer of the five main statutory payroll payments in Sri Lanka need mid-year figures carried over. A mid-month cutover is still possible. It just means more numbers to carry across correctly.
The opening-balance data set
Before you run the first pay run on the new system, collect:
| Figure | What to carry over |
|---|---|
| Year-to-date gross pay | For every employee, from the start of the tax year to cutover |
| Year-to-date APIT deducted | For every employee, for the same period |
| EPF and ETF member numbers | Matched to the right employee |
| Leave balances | Annual, casual and any carried-forward days |
| Loan balances | Any active loan and its remaining instalments |
If you also use QuickBooks or Xero, see whether QuickBooks or Xero handles Sri Lankan payroll for how these figures feed the ledger.
Cumulative APIT: why it must come across
Most months, APIT is worked out on that month’s pay alone, using the year’s tax bands. But an employee’s pay for the year can cross the tax thresholds because some months are higher, or they can start or leave mid-year. Then you switch them to a cumulative method for the rest of the year. This keeps their annual tax right. If your new system does not know what was already deducted this year, it cannot apply that cumulative method correctly. Carry the year-to-date APIT figure across for every employee, not just the ones you think might be affected.
EPF and ETF member numbers and continuity
An employee’s EPF and ETF member numbers do not change when you change payroll systems. Enter them correctly in the new system before the first pay run, matched name for name. If you remit through the R1 form (15 or more employees), you stay on R1 even if headcount later drops. Confirm your new system supports the remittance form your headcount requires. It should also produce the electronic ETF payment file, required for 15-or-more employers since the July 2026 contribution.
Leave and loan balances
Leave and loan balances are your own records, not a statutory filing, but they matter to staff immediately. Pull a snapshot of every employee’s leave balance and any outstanding loan on the day before cutover. Load that snapshot as the opening balance in the new system, so nobody’s leave or loan history resets to zero.
Parallel running for one month
Before you rely on the new system alone, run one pay period in both the old and new system side by side. Compare gross pay, EPF, ETF, APIT and net pay for every employee. Investigate any difference before it reaches a real payslip. This step catches configuration mistakes before they cost you a correction later.
Post-cutover checks before the first live payslip
- Confirm every employee’s gross pay matches between the old and new system for the last shared period.
- Confirm EPF and ETF totals match what you would have remitted under the old system.
- Confirm year-to-date APIT carried over correctly for at least one employee near a tax band edge.
- Confirm leave balances shown to staff match what they had before cutover.
- Only then release the first live payslip from the new system.
See how to avoid errors in payroll processing for the wider set of checks worth running every month after that. If the reason for the move is that a spreadsheet is no longer keeping up, see Excel Payroll or Software? When to Switch in SL for the signs.
Do this automatically in Humanised. The Humanised team loads your opening figures for you at the start. Plans start at LKR 10,000 a month for up to 15 staff. The free 7-day assisted trial is set up by the Humanised team on your own data.
This is general payroll guidance. Every case is different. For your own case, speak to a payroll practitioner or a lawyer.
Frequently asked questions
Do I need to notify EPF or ETF that I changed payroll software?
No source we checked says either way. Ask the EPF Department and ETF Board directly if you are unsure.
What if I do not have clean year-to-date figures from the old system?
Reconstruct them from payslips and bank remittance receipts before cutover. Do not guess a figure, since it feeds directly into the APIT calculation.
Can I migrate partway through a month?
Yes. You will need that partial month’s figures from the old system too, as an extra opening balance.
How long should the parallel run last?
One full pay period is the practical minimum. A second period gives more confidence if your pay varies a lot month to month.
What is the single biggest risk in a mid-year migration?
Losing or mistyping year-to-date APIT. It is invisible until an employee’s annual tax comes out wrong at year end.
Was this article helpful?
Your feedback helps us improve these guides.