Acquisition & Divestiture Checklist for the HR & Payroll Merger

Transition strategy checklist ☑️

M&A deals often land on HR and Payroll (and HRIT) without much warning and often without additional resourcing help to handle a successful operational consolidation effort.

This often results in a failure to realize ROI on expected administrative cost savings of IT and HR overhead specifically.  It also can mean a bumpy and disengaged transition for the incoming or outgoing workforce.

HR & Payroll are often tasked with figuring out the roadmap, project plan and deliverables required for operations to be integrated quickly.

Be sure to have an understanding of each of these concepts before attempting a merge or acquisition:



Will employees keep their existing employment contracts or do they need to sign new ones?

Who will handle historical manager or employee information requests (e.g. W-2s, paystubs, job history, unemployment verification, non-discrimination testing, labor audits, etc.)


Year to date tax and wages

Paycheck history


Avoid State Unemployment tax “dumping” laws

Time Benefits

Are employees going to have to enroll in new plans or keep their existing ones?

Do we want to migrate year to date payroll balances for statutory limits like 401k, Flex Spending health and dependent care, etc.?


Are compensation plans aligned, do they reflect market rates?

Do employees have long and short-term incentive plans for handover?

What about Stock option plans or Restricted Stock plans (RSUs) that need to be accommodated?