WASHINGTON, D.C. — Federal employees served by the Department of Health and Human Services may see faster and more reliable payroll processing after the agency replaced a decades-old system with a modern, cloud-based platform.
What This Means for You
- Payroll processing is expected to be faster and more accurate
- Manual tasks that took hours can now be completed in minutes
- The system is designed to improve security and reduce system failures
The Department of Health and Human Services, or HHS—the federal agency responsible for public health programs and services—transitioned from a legacy payroll system built on COBOL, an older programming language commonly used in government mainframe systems, to a cloud-based system.
Legacy systems are older technologies that can be costly to maintain, difficult to update, and more prone to errors or outages.
System Upgrade and Impact
Officials said the previous system relied heavily on manual processes and outdated code, creating operational challenges and increasing maintenance costs.
Under the new platform, many payroll-related tasks that previously required up to six hours of manual work can now be completed in minutes through automation, which uses software to perform repetitive tasks without human input.
“This milestone demonstrates that HHS is not only transforming its legacy systems but leading the way for innovation across the federal government,” HHS Chief Information Officer Clark Minor said. “By replacing outdated technology and driving collaboration across agencies, we are increasing efficiency, strengthening security, and delivering more reliable, higher-quality services to the American people.”
Multi-Agency Collaboration
The transition was completed over eight months in partnership with the Federal Aviation Administration and the Defense Finance and Accounting Service.
Officials said the agencies worked together to analyze complex payroll processes, test the new system, and ensure it could operate accurately across different platforms.
Testing included validating performance, accuracy, and interoperability—a term that refers to the ability of different systems to work together and share data effectively.
Broader Federal Modernization Effort
The upgrade aligns with the Office of Personnel Management’s Federal HR 2.0 initiative, which aims to modernize human resources systems across the federal government.
HHS officials said the project is intended to reduce long-term costs, improve system reliability, and support broader efforts to replace outdated federal technology with shared, modern platforms.
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