Backing up is a very important part of payroll processing.
A backup of each payroll should be done at least once every payroll period. This is normally done before doing a period end procedure. If there is a lot of data being processed in a period then a backup during the period is advised. This will backup up the entire SQL data for the current payroll so that if everything were to be lost on the computer, then re-installing this backup will restore everything necessary to get up and running again.
For more information on how to take a backup, see: Backup Overview
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